PENDLETON, Ind. – Remy International has announced its financial results for the first quarter ended March 31, 2013.
The company reported net sales of $281.7 million for the first quarter of 2013, a decline of 4 percent compared to $293.1 million for the first quarter of 2012. The company said this decline is due to unfavorable volume/mix in the original equipment business partially offset by favorable aftermarket volume and currency effects. First quarter 2013 results also were impacted by planned investments in the company’s aftermarket and China businesses as well as higher materials costs partially offset by favorable currency.
Net income attributable to common stockholders was $1.3 million for the first quarter of 2013, compared to $8.7 million for the first quarter of 2012.
2013 results included $7 million in executive officer separation cost, $4.3 million in loss on extinguishment of debt and refinancing fees and $0.7 million in restructuring and other charges. 2012 results included $1.7 million in restructuring and other charges.
Remy President and CEO Jay Pittas commented, "In the first quarter of 2013, we made significant investments that will generate future returns. We improved coverage in our light-duty aftermarket business and invested in infrastructure for our China business. We secured new business with key Asian customers and launched new products across the globe. The macroeconomic environment continues to drive mixed results. Our strong aftermarket performance was offset by weakness in Europe and the global commercial vehicle market."
Fred Knechtel, Remy CFO, added, "First quarter financial performance for the company was down year-over-year due to one-time executive officer separation cost, debt extinguishment expense and investments for future growth. We successfully refinanced our debt on favorable terms that will provide us the flexibility to support our global growth strategy. Operational restructuring efforts will continue to improve our cost structure into 2013."
Added Pittas, "The transition to my new position has been seamless. During the quarter, I enjoyed meeting with many of our stakeholders and look forward to working together to make this business stronger than ever. Remy’s strong cash flow, strong balance sheet, recent public listing on NASDAQ and new loan agreement provide us with the financial flexibility to take advantage of strategic opportunities as they arise."
