Wescast Industries Inc.

Wescast Industries Inc.

April 28, 2009 11:12 ET

Wescast Reports First Quarter Results

BRANTFORD, ONTARIO--(Marketwire - April 28, 2009) - Wescast Industries Inc. (TSX:WCS.A) today reported 2009 first quarter sales of $42.7 million and a net loss of $9.8 million.

(In thousands of Canadian dollars,
except per share amounts) Three Months Ended

March 29, 2009 March 30, 2008
-------------- --------------

Sales 42,656 81,948

Gross (loss) profit (4,955) 4,762

Net loss (9,801) (2,522)

Diluted net loss per share (0.74) (0.19)

Cash derived from (applied to) operations 122 (6,845)


- The Company reported consolidated sales of $42.7 million, a decline of 47.9% compared to the $81.9 million reported in the first quarter of 2008, due to significantly lower sales generated by the Company's North American and European operations. The most significant factors contributing to the sales decline were the global economic crisis and the resulting further deterioration of the automotive market conditions. The Company's primary North American customer base, the Detroit 3 automakers, experienced a 53.8% decline in light vehicle production in the first quarter of 2009 compared to the first quarter of 2008.

- The Company reported a net loss of $9.8 million for the quarter compared with a net loss of $2.5 million reported in the first quarter of 2008. The deterioration in profitability was due mainly to the significantly lower sales volumes in North America and Europe.

- The first quarter net loss per share on a diluted basis was $0.74, compared with a net loss per share of $0.19 reported in the first quarter of 2008.

- The Company ended the quarter with net cash of $2.6 million.

- On April 20, the Company established a new credit facility. The new facility provides for a 364 day term in the maximum principal amount of $30.0 million. The secured facility may be used to finance working capital requirements and for general corporate purposes.

The Company's entire quarterly financial statements and Management's Discussion and Analysis will be available at www.sedar.com by the start of business on April 29, 2009.

About Wescast

Wescast Industries Inc. is the world's leading supplier of cast iron exhaust manifolds for passenger cars and light trucks. The Company designs, casts, machines and assembles iron exhaust system components for automotive original equipment manufacturers ("OEMs") and Tier 1 customers for the car and light truck markets in North America, Europe and Asia. The Company employs approximately 1,350 people in 7 production facilities and 5 sales and design centres in Canada, Hungary, the United States, Germany, Japan and China. The Company also has sales and technical design representation in the United Kingdom and France. The Company is recognized worldwide for its quality products, innovative design solutions and highly committed workforce.

Learn more at www.wescast.com.

Forward Looking Statements

The contents of this news release contain statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking statements based on certain assumptions. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Persons reading this news release are cautioned that such information may not be appropriate for other purposes. Such forward-looking statements may include financial and other projections as well as statements regarding Wescast's future plans, objectives or performance for the current period and subsequent periods and regarding the markets for our products. The words "may", "would", "could", "will", "likely", "expect", "anticipate", "estimate", "intend", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking statements. Persons reading this news release are cautioned that such statements are only predictions, and that Wescast's actual future results or performance may be materially different.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate in the circumstances.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties principally relate to the risks associated with the automotive industry and include, but are not limited to: our operating and/or financial performance, including the effect of new accounting standards on our reported financial results, fluctuations in interest rates, changes in consumer and business confidence levels, consumers' personal debt levels, vehicle prices, the extent and nature of purchasing or leasing incentive campaigns offered by automotive manufacturers, environmental emission regulations, fuel prices and availability, the continuation and extent of outsourcing by automotive manufacturers, changes in raw material and other input costs, our ability to continue to meet customer specifications relating to product performance, cost, quality, delivery and service, industry cyclicality or seasonality, trade and/or labour issues or disruptions, customer pricing pressures, pricing concessions and cost absorptions, actual levels of program production volumes by our customers compared to original expectations, including program cancellations or delays, price reduction pressures, dependence on certain engine programs and the market success and consumer acceptance of the vehicles into which such powertrain products are installed, our relationship with and dependence on certain customers, currency exposure, failures in implementing Wescast's strategy, technological developments by Wescast's competitors, government and regulatory policies and changes in the competitive environment in which Wescast operates.

Wescast does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by law.

Contact Information

  • Wescast Industries Inc.
    Mr. E. Kent Harris
    Chief Financial Officer
    (519) 750-0000