PENDLETON, Ind. – Remy International announced net sales of $295 million for the second quarter ended June 30, a decline of 3 percent compared to $304 million for the second quarter of 2011. Two thirds of the revenue decline was attributable to foreign exchange, Remy said.
Adjusted EBITDA of $39.7 million for the second quarter of 2012, compared to adjusted EBITDA of $53.1 million for the second quarter of 2011. Second quarter 2011 adjusted EBITDA of $53.1 million included $7.3 million from a favorable contract settlement with an OEM customer and an insurance settlement, as well as $4.5 million of favorable commodity and currency hedge gains. Excluding these benefits, adjusted EBITDA was $41.3 million. Second quarter 2012 adjusted EBITDA of $39.7 million reflects $4 million of aftermarket competitive price pressure related to actions taken in the third quarter of 2011.
John Weber, Remy International president and CEO, commented, "In spite of a more challenging global macroeconomic environment than anticipated, Remy continues to deliver solid operating performance. We posted $40 million in adjusted EBITDA for the second quarter. We made significant progress on our cost-savings initiatives, including closing facilities. We completed a detailed review of our global manufacturing and distribution footprint that will drive significant savings in 2013 and beyond. Our light- and heavy-duty, aftermarket and hybrid businesses all won significant new contracts with global customers."
Fred Knechtel, Remy International CFO, added, "Our business continued to perform well in the second quarter despite the European recession and a softer Chinese market and North American aftermarket. The second quarter was the third consecutive quarter of sequential improved operating performance. To protect our operating performance regardless of market conditions, we continue to drive cost-reductions."
As noted, Remy completed several operational restructuring initiatives, including closing its Matehuala, Mexico, aftermarket plant. The company also announced its intention to close its Mezokovesd, Hungary, plant. Products will be transferred to other Remy facilities by the end of this year. Remy also established a new plant in Wuhan, China, to meet demand in its heavy-duty and hybrid businesses.
