Exco Technologies Limited - Results for First Quarter ended December 31, 2012

Exco Technologies Limited - Results for First Quarter ended December 31, 2012

PR Newswire

TORONTO, Jan. 30, 2013

TORONTO, Jan. 30, 2013 /PRNewswire/ - Exco Technologies Limited (TSX-XTC)
today announced results for its first quarter ended December 31, 2012.

                                              
                                 Three Months ended
                                      December 31
                           ($000s, except per share amounts)
                                          2012         2011
Sales                                    58,686       58,486
Net income                                5,787        5,286
Basic earnings per share                  $0.14        $0.13
Diluted earnings per share                $0.14        $0.13
Common shares outstanding     40,649,195   40,925,227

Consolidated sales for the  first quarter ended December  31, 2012 were  $58.7 
million - a slight increase of $200 thousand or approximately 0.5% compared to
last year. Surging light vehicle production continued to support our sales in
North America and numerous new program launches in Europe also supported sales
and offset eroding volumes on existing European programs.

Consolidated net income for  the first quarter was  $5.8 million or $0.14  per 
share compared to consolidated net income  of $5.3 million or $0.13 per  share 
in the  same quarter  last  year. The  improvement  in the  current  quarter's 
earnings was led  by the  Automotive Solutions  segment with  $3.8 million  in 
pretax income compared to $3.3 million pretax income or 14% increase from  the 
same quarter last  year. The  Casting and Extrusion  segment reported  segment 
pretax income in the first quarter of $5.6 million compared to segment  pretax 
income of $5.4 million in the same quarter last year - a 4% increase.

Successful  cost  containment  in  recent  years  and  program  rotation   has 
positioned Polytech  and  Neocon  for higher  profitability.  Improving  light 
vehicle production volume has also improved overhead absorption. In the  case 
of Polydesign, the smooth  launch of new products  has not only provided  more 
throughput but  also  higher  added  value product  mix  and  modestly  higher 
earnings.

In the Casting and Extrusion segment  the earnings improvement was led by  the 
large mould group which continued to benefit from improved performance at Edco
and Excoeng Mexico  compared to a  combined loss for  these two entities  last 
year of 1  cent per  share. Extrusion earnings  in the  current quarter  were 
consistent with prior year - though  mildly impacted by integration and  setup 
costs  in  Colombia.  The  recent  acquisition  in  Colombia,  which   started 
production in January 2012, incurred losses of approximately 1 cent per  share 
in the current quarter. Earnings at Castool improved slightly on higher sales.

Operating cash flow  before net  changes in  non-cash working  capital in  the 
first quarter increased to $8.0 million from $6.8 million in the same  quarter 
last year. Exco ended the  quarter with cash on hand  of $29.5 million and  no 
bank debt.

The overall outlook for Exco over the next several quarters has not materially
changed from the last quarter. The  two major trends of strong light  vehicle 
production volumes  in  North  America  and  steady  introduction  of  new  or 
refreshed vehicles  and  powertrain  systems  by  virtually  all  OEMs  remain 
intact. These trends continue to  benefit our components businesses,  Castool 
and our large  mould businesses. Our  large mould business  in particular  is 
experiencing strong  demand from  its die  cast customers  who are  themselves 
experiencing high production requirements.  The emphasis at these  operations 
are increasingly  on maintaining  sufficient  inventory and  meeting  delivery 
dates. At  the extrusion  businesses the  focus will  be on  integrating  our 
latest acquisition  in  Texas,  executing the  recently  announced  greenfield 
extrusion plant  development in  Sorocaba, Brazil  and bringing  our  recently 
acquired operation in Colombia to profitability.

In Europe  the  situation is  much  more  subdued as  production  volumes  are 
expected to contract further in 2013 - although to what extent continues to be
unclear. New program launches over  the last several quarters have  insulated 
Polydesign from bleak market  conditions in Europe and  are expected to do  so 
throughout the rest of fiscal 2013. The dire overcapacity situation in Europe
and erratic OEM production scheduling leads Exco management to expect  overall 
results for Polydesign to be generally in line with last year's performance.

(For further  information  and  prior  year comparison  please  refer  to  the 
Company's First Quarter Interim Financial Statements in the Investor Relations
section  posted   at  www.excocorp.com.   Alternatively,  please   refer   to 
www.sedar.com)

Exco Technologies  Limited is  a global  supplier of  innovative  technologies 
servicing the die-cast, extrusion and  automotive industries. Through our  11 
strategic locations, we employ  2,216 people and service  a diverse and  broad 
customer base.

To access the live audio webcast, please log on to www.excocorp.com or
directly to the web cast at
http://event.on24.com/r.htm?e=563694&s=1&k=FF56C7C8937AA6E9DD3B66436D9E8EDA a
few minutes before 4:30 PM on January 30, 2013. Questions can be submitted
via the Q&A box on the webcast console. Microsoft Media Player is required
for access. For those unable to listen on January 30, 2013, an archived
version will be available on the Exco website.

This news  release contains  forward-looking information  and  forward-looking 
statements within the meaning of applicable securities laws. We use words such
as  "anticipate",  "plan",  "may",  "will",  "should",  "expect",   "believe", 
"estimate" and similar expressions to identify forward-looking information and
statements especially with respect to growth and financial performance of  the 
Company's business  units, contribution  of our  businesses (particularly  our 
start-up business units in Mexico and Colombia), input costs and our operating
efficiencies. Such forward-looking  information and statements  are based  on 
assumptions and  analyses  made by  us  in light  of  our experience  and  our 
perception of  historical  trends,  current  conditions  and  expected  future 
developments, as  well  as  other  factors  we  believe  to  be  relevant  and 
appropriate in  the  circumstances.  These assumptions  include,  among  other 
things, the  number  of automobile  vehicles  produced in  North  America  and 
Europe, the  rate of  economic growth  in North  America and  Europe and  BRIC 
countries, investment by OEMs in drivetrain architecture and structural parts
and currency fluctuations (particularly  with respect to  the US dollar,  Euro 
and Mexican  Peso). Readers  are cautioned  not to  place undue  reliance  on 
forward-looking information and statements, as there can be no assurance  that 
the assumptions, plans, intentions or expectations upon which such  statements 
are based will occur. Forward-looking information and statements are  subject 
to known and unknown risks, uncertainties, assumptions and other factors which
may cause  actual  results,  performance  or  achievements  to  be  materially 
different from  any future  results,  performance or  achievements  expressed, 
implied or  anticipated  by such  information  and statements.  These  risks, 
uncertainties and  assumptions are  described  in the  Company's  Management's 
Discussion and Analysis included in our 2012 Annual Report, in our 2012 Annual
Information Form and, from time to time, in other reports and filings made  by 
the Company with securities regulatory authorities.

While  the  Company   believes  that  the   expectations  expressed  by   such 
forward-looking information and  statements are  reasonable, there  can be  no 
assurance that such expectations and assumptions will prove to be correct. In
evaluating  forward-looking   information  and   statements,  readers   should 
carefully consider the  various factors  which could cause  actual results  or 
events to  differ  materially  from those  indicated  in  the  forward-looking 
information and statements. Readers are  cautioned that the foregoing list  of 
important factors is not exhaustive. Furthermore, the Company will update its
disclosure upon publication  of each  fiscal quarter's  financial results  and 
otherwise disclaims any obligations to update publicly or otherwise revise any
such factors or any of the forward-looking information or statements contained
herein to reflect subsequent information,  events or developments, changes  in 
risk factors or otherwise.





SOURCE Exco Technologies Limited

Contact:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Vice-President, Finance and Chief Financial Officer
Telephone:(905) 477-3065 Ext. 7228
Website:http://www.excocorp.com
 
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