PENDLETON, Ind. – Remy International has announced its financial results for the second quarter ended June 30, 2013.
The company reported net sales of $282.3 million for the second quarter of 2013, a decline of 4 percent compared to $294.8 million for the second quarter of 2012. Remy said this decline is due to unfavorable volume/mix in original equipment and hybrids partially offset by favorable aftermarket volume. The second quarter of 2012 benefited from a very strong North American commercial vehicle market and robust aftermarket orders.
Net income attributable to common stockholders was $11.4 million for the second quarter of 2013 compared to $17.4 million for the second quarter of 2012.
In the second quarter, Remy completed the acquisition of the remaining 49 percent of its Remy Hubei Electric Joint venture from its Chinese joint venture partner, thereby giving Remy 100 percent control of the entity.
For the first half, Remy reported net sales of $564.1 million for the six months ended June 30, 2013, a decline of 4 percent compared to $587.9 million for the six months ended June 30, 2012. The decline is due to unfavorable volume/mix in original equipment and hybrids partially offset by favorable aftermarket volume.
Net income attributable to common stockholders was $12.6 million for the six months ended June 30, 2013 compared to $26.2 million for the six months ended June 30, 2012. 2013 results include $9.8 million in non-recurring restructuring and separation cost, and $4.3 million in loss on extinguishment of debt and refinancing fees.
Remy CFO Fred Knechtel commented, "First half financial performance was in line with our expectations. The year-over-year decline was due to lower light-duty original equipment and hybrid volumes, softer North American commercial vehicle demand, growth investments, one-time refinancing, restructuring and separation costs. Our operational restructuring and refinancing actions are expected to improve our cost structure for the second half of 2013."
Jay Pittas, Remy International president and CEO, added, "In the second quarter of 2013, we made significant progress executing our business plan to achieve future growth. Our investments to support the aftermarket helped drive increased sales. We completed the acquisition of the outstanding shares of our China Hubei joint venture and started production at our Wuhan facility. These provide increased control over our business, more than double existing alternator capacity and significantly expand our starter capacity in China. During the quarter, we realized the benefits of these investments with several new business awards with key Chinese customers. We remain confident that we have the right strategies in place to achieve long-term success for the company."
