Fred Di Tosto, Martinrea's Chief Financial Officer, stated: "Revenues for the fourth quarter, excluding $36.6 million in tooling revenues, were approximately $669 million which was within our quarterly sales guidance as previously provided. In the fourth quarter of 2012 our adjusted earnings per share on a basic and diluted basis was $0.15, after factoring out restructuring costs, predominantly employee related severance costs especially at Martinrea Honsel's German operations, and the settlement of customer chargebacks relating mainly to customer production downtime and premium freight costs paid by the customer, within our quarterly earnings guidance as previously reported. Our fourth quarter results from the Martinrea Honsel assets, after factoring out unusual and other items, amounted to approximately $0.01 of earnings per share for the quarter, lower than our previous three quarters due mainly to softness in Brazil and Europe. Our fourth quarter from Martinrea Classic amounted to approximately $0.14 of earnings per share, after factoring out unusual and other items. As previously noted, we did experience some launch activity and operational costs which negatively impacted earnings in the quarter. These costs have begun to subside since year end. As noted in the past, we continue to expect gross margin to continue to improve over time as the restructuring measures taken in Martinrea Honsel take hold and we continue launching a significant backlog of business."
Rob Wildeboer, Martinrea's Executive Chairman, stated: "We believe that the year 2012 has set the stage for a better 2013. Absent events we do not foresee at this time, 2013 should be a record year for revenues and earnings. Our first quarter, which is almost complete, is expected to generate revenues (excluding tooling revenues) in the range of $700 to $720 million, and we believe our earnings per share will be in the range of 22 to 26 cents per share, an upward trend from our fourth quarter as we rationalize our operations and improve efficiencies. We are pleased to announce that we do not expect to have any unusual or other items to report in the first quarter. We remain focused on improving shareholder value over time, as we always have, as we implement long-term prudent, profitable growth strategies."
Mr. Wildeboer added: "At year end we also reflect on the support we have received in the past year, and we thank all of our shareholders, lenders, customers and of course our employees, for their continued and valued support."
Special Note Regarding Forward-Looking Statements
This Press Release contains forward-looking statements within the meaning of applicable Canadian securities laws including related to the Company's expectations as to revenue and gross margin percentage and earnings per share (and the expectation as to absence of unusual items), statements as to the growth of the Company and pursuit of its strategies, the launching of new metal forming and fluid systems programs including expectations as to the financial impact of the launch at the Shelbyville and other plants, and statements as to the progress of operational improvements and the continuation of operational efficiencies (including at the Shelbyville and Hopkinsville plants), the opportunity to increase sales, statements regarding the continuation of monitoring, managing and rationalization of expenses (including of Martinrea Honsel), the reduction in certain costs (including the reduction of costs due to operational improvements), the Company's expectations regarding the future amount and type of restructuring expenses to be expensed (including Martinrea Honsel), the Company's view on the financial viability of its customers, the Company's views on the long term outlook of the automotive industry, and corresponding increased sales and production, statements as to the benefits of the Honsel acquisition, the Company's ability to capitalize on opportunities in the automotive industry, first quarter 2013 revenue and earnings per share estimates and as well as other forward-looking statements. The words "continue", "expect", "anticipate", "estimate", "may", "will", "should", "views", "intend", "believe", "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, some of which are discussed in detail in the Company's Annual Information Form and other public filings which can be found at www.sedar.com:
-- North American and global economic and political conditions;-- the highly cyclical nature of the automotive industry and the industry's dependence on consumer spending and general economic conditions;-- the Company's dependence on a limited number of significant customers;-- financial viability of suppliers;-- the Company's reliance on critical suppliers and on suppliers for components and the risk that suppliers will not be able to supply components on a timely basis or in sufficient quantities;-- competition;-- the increasing pressure on the Company to absorb costs related to product design and development, engineering, program management, prototypes, validation and tooling;-- increased pricing of raw materials;-- outsourcing and insourcing trends;-- the risk of increased costs associated with product warranty and recalls together with the associated liability;-- the Company's ability to enhance operations and manufacturing techniques;-- dependence on key personnel;-- limited financial resources;-- risks associated with the integration of acquisitions;-- costs associated with rationalization of production facilities;-- launch costs;-- the potential volatility of the Company's share price;-- changes in governmental regulations or laws including any changes to the North American Free Trade Agreement;-- labour disputes;-- litigation;-- currency risk;-- fluctuations in operating results;-- internal controls over financial reporting and disclosure controls and procedures;-- environmental regulation;-- a shift away from technologies in which the Company is investing;-- competition with low cost countries;-- the Company's ability to shift its manufacturing footprint to take advantage of opportunities in emerging markets;-- risks of conducting business in foreign countries, including China, Brazil and other growing markets;-- potential tax exposure;-- a change in the Company's mix of earnings between jurisdictions with lower tax rates and those with higher tax rates, as well as the Company's ability to fully benefit from tax losses;-- under-funding of pension plans; and-- the cost of post-employment benefits.