PENDLETON, Ind. – Remy International has announced its financial results for the quarter ended Sept. 30, 2012.
The company reported net revenue of $277 million for the third quarter 2012, a decline of 8 percent compared to $300 million for the third quarter of 2011. Remy said this revenue decline is attributable to weaker original equipment volume, unfavorable mix in the company’s higher margin products and lower U.S. dollar translation of revenue denominated in foreign currencies
Net earnings attributable to common shareholders were $96.5 million in the third quarter of 2012 compared to $1.2 million in the third quarter of 2011. Third quarter 2012 results included the reversal of an $84.7 million valuation allowance on our deferred tax assets balance as well as approximately $5.4 million of charges primarily related to restructuring activities and actions to improve future operating performance. Excluding these restructuring charges and the valuation allowance reversal, net earnings attributable to common shareholders would have been $17.2 million in the third quarter of 2012. Third quarter 2012 also included the declaration and payment of $3.1 million in common stock dividends
Remy also announced it has appointed Ed Neiheisel as chairman of Remy China. In this role, Neiheisel is leading the effort to establish Remy’s new plant and new China Engineering Center in Wuhan, China, as well as identify sales growth opportunities and deliver operational efficiencies across our businesses in China.
Also during the third quarter, Fidelity National Financial Inc. increased its ownership of Remy International to approximately 51 percent.
John Weber, Remy International president and CEO, commented, "While the global macroeconomic environment continues to be a challenge as the U.S. commercial vehicle market has softened, demand in Europe has weakened and China has slowed, our adjusted EBITDA margins improved 2.8 percentage points in the third quarter of 2012 compared to the third quarter of 2011. We responded to the economic challenges early in the year and implemented numerous initiatives including closing plants and cutting costs while maintaining investments in key growth programs, which is reflected in our earnings results."
Fred Knechtel, Remy International CFO, added, "We were pleased to deliver higher core operating performance of $36 million in adjusted EBITDA during the quarter compared to $30 million in adjusted EBITDA for the third quarter of 2011. Our cash balance at Sept. 30, 2012, increased to $95.4 million compared to $91.7 million at Dec. 31, 2011. We continue to drive cost reductions to maintain strong financial performance and position ourselves to emerge as a stronger company when markets recover."
