Releases 2013 Audited Annual Results, Reports on Results of Special
Committee Forensic Review and Announces Dividend
TORONTO, ONTARIO--(Marketwired - Mar 31, 2014) - Martinrea
International Inc. (TSX:MRE), a leader in the production of quality
metal parts, assemblies and modules and fluid management systems
focused primarily on the automotive sector, announced today the
release of its financial results for the year and fourth quarter
ended December 31, 2013. The Company also reported on the results
of the previously announced Special Committee forensic review and
announced a quarterly dividend.
OVERVIEW
Nick Orlando, Martinrea's President and Chief Executive Officer,
stated: "The year 2013 was another year of building our company and
our business at Martinrea. For the third consecutive year, we
enjoyed record revenues. Our adjusted earnings and adjusted
earnings per share were the highest in our history. We expanded our
business and our workforce so that now we have over 13,000 people
in 38 plants in many areas of the globe to serve our customers. We
launched business in our first plant in China - Martinrea Fluids
Anting, and we broke ground in building our first Martinrea Honsel
facility in China. We continued to invest in and build up the value
of our assets and it is clear to us that our investment in
Martinrea Honsel has been a rousing success."
Mr. Orlando added: "In terms of our fourth quarter, we had some
good results in many divisions and in Martinrea Honsel, which had
its best quarter to date. At the same time, we had some operational
issues and launch costs in several of our plants, which cost us.
All in all, it made our fourth quarter a disappointment from a
financial point of view. In terms of business won, we secured
replacement business from a variety of sources amounting to $150
million in annualized revenue including: the replacement Pentastar
aluminum engine block for Chysler in Mexico starting in 2016 as
well as incremental machining business, various metallic assemblies
for Nissan in the U.S. starting in 2015 and the replacement front
and rear engine cradle for GM's E2XX platform currently being
manufactured in our Hopkinsville, Kentucky facility starting in
2015. The Company is also launching approximately $250 million in
annualized business over the next twelve months including: the Ford
Transit, Chrysler 200, Lincoln version of the Ford Escape, VW Golf,
2.3L Ford engine block, Ford Edge and GM's small pick-up
platform.
Fred Di Tosto, Martinrea's Chief Financial Officer, stated:
"Revenues for our fourth quarter, excluding $73 million in tooling
revenues, were approximately $786 million, above our quarterly
sales guidance previously provided and record fourth quarter
revenues for us. In the fourth quarter of 2013, our adjusted
earnings per share, on a basic and diluted basis, was $0.17, after
adjusting for year-end asset write-downs and other costs related to
our facility in Hopkinsville, Kentucky and litigation costs. The
quarter proved to be a difficult one for the Company. Operational
issues encountered in Hopkinsville, and launch costs on several
upcoming programs impacted the results for the quarter. These costs
are expected to subside, and overall margin improve, as the
upcoming new programs come online and as operational improvements
in Hopkinsville are made. Operations in Hopkinsville are currently
stable and the plant is focusing its attention on cost reduction
and improving productivity. On a positive note, our Martinrea
Honsel operations continued its strong performance during the
fourth quarter. The Martinrea Honsel operations contributed $0.10
per share to our fourth quarter results, an increase over the third
quarter of 2013, where the operations generated $0.07 in earnings
per share, and fourth quarter of 2012, where the operations
generated $0.01 in earnings per share. The Martinrea Honsel
operations generally benefitted from higher revenues, some of which
was from new incremental aluminum business with Jaguar LandRover,
and ongoing productivity and efficiency improvements at certain
facilities, in particular in Germany. As a result of the strong
performance of Martinrea Honsel, the value of the put option on the
Company's balance sheet increased by $67 million during the year to
$154 million as at December 31, 2013, demonstrating the significant
increase in the value of the Martinrea Honsel business since it was
acquired. Martinrea Honsel is expected to continue to be a strong
contributor to the overall business."
Rob Wildeboer, Martinrea's Executive Chairman, stated: "While
2013 overall was a good year for us, we look forward to the future.
Focus will be on operational and financial improvement across the
company over time, good capital allocation decisions, and prudent,
profitable growth. We have to be very careful selling our capacity
now that many of our plants are more full than they used to be, and
our capital allocation decisions and quoting have become more
focused and disciplined. Our first quarter is expected to generate
revenues for the quarter (excluding tooling revenues) in the range
of $820 million to $840 million, and we believe our earnings per
share will be in the range of 19 to 22 cents per share. January was
a weak month from a financial point of view as we experienced some
shutdown activity as customers adjusted their inventory levels and
the Hopkinsville operational issues extended into January. February
and March were stronger months, and the second quarter is looking
to be a good one for us, but we will update our expectations at the
time of releasing our first quarter results. As we announce our
year end results, we want to thank our people who have worked so
very hard for our company in 2013. It was a very busy year for all
of us; we are exceedingly proud of our team."
REPORT OF THE SPECIAL
COMMITTEE
On September 26, 2013, Nat Rea and another person issued a claim
against Martinrea and certain of its directors and executives. The
allegations suggest, in essence, that by reason of the conduct of
certain members of management, including past senior management,
the Company's disclosures had not been accurate, and that members
of management had breached duties owed to the Company, which if
verified, would have impacted the Company's previously issued
financial statements.
Although there was reason to question both the merit and the
motivation of the allegations, the Board of Directors constituted
an independent committee in November, 2013, comprising Scott
Balfour and Fred Olson (the "Special Committee"), to supervise an
investigation into the allegations and the response to such
litigation and related matters. The Special Committee engaged both
independent legal counsel and an independent financial/accounting
adviser. The Special Committee's independent financial/accounting
adviser, PricewaterhouseCoopers, was retained with a mandate to
conduct a detailed forensic investigation into the matters raised
in the litigation.
Separately, and during the course of the Special Committee
review, an issue was identified by management with respect to the
accuracy of the results reported by one particular plant (Hydroform
Solutions) incorporated in previously issued financial statements.
The existence of this issue was publicly disclosed by the Company
on December 18, 2013. A review of this issue was added to the
Special Committee's mandate.
The Special Committee approved, prioritized and supervised a
detailed work plan for PwC in addressing the allegations and the
Hydroform Solutions issue. PwC worked in cooperation with the
Company's auditors, KPMG, which attended the substantial majority
of the Special Committee's meetings with PwC for at least a portion
of such meetings. The Special Committee considers that PwC and KPMG
worked together in a cooperative and constructive manner that
enabled the work to proceed on an efficient basis. PwC has also
informed the Special Committee of the good cooperation of the
Company and its existing and former employees in the course of its
review, including the willingness of the CEO, and certain third
party entities primarily named in the Rea litigation, to share and
review their personal financial records.
The retainer of PwC included a review of and recommendations for
improvement of processes and internal control systems, which
recommendations have been or are in the process of being
implemented.
The work performed by PwC fully included the scope of review
that PwC recommended. PwC's investigation included multiple
interviews with numerous staff executives and third parties, and an
extensive examination of financial and non financial records and
documents. The investigation included a review of more than 160,000
electronic documents responsive to key words applicable to the
investigation, from a population of over 6 million items, which
were prioritized and escalated to the Special Committee as
appropriate to ensure a comprehensive investigation into the claims
and to develop an accurate determination and assessment of the
facts.
The Special Committee met with PwC on 19 occasions in the period
since December 16, 2013. In the latter meetings PwC provided verbal
reports of its findings and conclusions based on the substantial
work they have completed. The retainer of PwC will continue with
respect to the litigation. As such its conclusions must be subject
to reevaluation if additional information arises.
Based on the comprehensive work done to date, the Special
Committee and the Audit Committee have advised the Board of
Directors, and the Board of Directors has determined after full
review and discussion that:
- it is appropriate to approve the Company's financial statements
as prepared by management and audited by KPMG for the year ended
December 31, 2013, and
- it is not necessary to alter the previous public statements as
to the fair presentation of the financial position of the Company
within limits of materiality in any prior year.
The review conducted by PwC did not rely upon the report of
Suleiman Rashid dated September 26, 2011 (the "Rashid Report"), but
rather was an independent consideration of subjects considered in
the Rashid Report (and additional subjects) on a full forensic
basis. The conclusions reached by PWC on the subjects considered in
the Rashid Report are entirely consistent with those expressed in
the Rashid Report.
As a result of the Special Committee's review the Board of
Directors has determined that:
- The Company does not intend to change any aspect of its
position in the litigation initiated by Nat Rea as set forth in its
Statement of Defence and Counterclaim;
- The Company has adopted or is in the process of adopting all of
the additional or enhanced control procedures recommended by PwC
and the Special Committee, as further disclosed in the Company's
2013 MD&A;
- The Company has terminated the employment of the former
Controller of the Hydroform Solutions plant;
- The Company will recover the excess incentive payments based on
the originally reported Hydroform Solutions results to existing
executives and the former CEO, and additionally intends to seek
recovery of such amounts paid to Mr. Rea;
- While not material to the Company's financial reports, the
Company will recover $246,100, plus interest thereon, of payments
which were made by the Company but that the Company is treating as
appropriately the responsibility of the Company's former CEO. The
former CEO's contract with the Company has terminated, and the
foregoing recovery will be made from amounts already withheld;
- PwC will be in a position to provide an expert report should
the matter proceed to trial including new information, if any,
generated in the pre-trial procedures; and
- The issue of responsibility for the costs incurred by the
Company to respond to the litigation, and to reinforce and
reconfirm the earlier conclusions of the Rashid Report, will be
included by the Company as part of its counterclaim against
Rea.
RESULTS OF
OPERATIONS
Martinrea currently employs over 13,000 skilled and motivated
people in 38 plants in Canada, the United States, Mexico, Brazil,
Europe, and China. All amounts in this press release are in
Canadian dollars, unless otherwise stated; and all tabular amounts
are in thousands of Canadian dollars, except earnings per share and
number of shares. Additional information about the Company,
including the Company's Management Discussion and Analysis of
Operating Results and Financial Position for the year and fourth
quarter ended December 31, 2013 ("MDA") dated as of March 30, 2014,
the Company's audited consolidated financial statements for the
year ended December 31, 2013 (the "audited consolidated financial
statements") and the Company's Annual Information Form dated March
30, 2014 for the financial year ended December 31, 2013, can be
found at www.sedar.com.
Non-IFRS
Measures
The Company prepares its financial statements in accordance with
International Financial Reporting Standards ("IFRS"). However, the
Company has included certain non-IFRS financial measures and ratios
in this press release that the Company believes will provide useful
information in measuring the financial performance and financial
condition of the Company. These measures do not have a standardized
meaning prescribed by IFRS and therefore may not be comparable to
similarly titled measures presented by other publicly traded
companies, nor should they be construed as an alternative to the
other financial measures determined in accordance with IFRS.
Non-IFRS measures referred to in the analysis include "adjusted net
earnings", and "adjusted net earnings per share on a basic and
diluted basis" and are defined in Tables A and B under "Adjustments
to Net Income" of this press release.
Explanatory Note
Regarding the Correction of Prior Period Immaterial
Errors
The Company has revised its consolidated financial statements
for the year ended December 31, 2012 and the related note
disclosures. The financial statements were revised to correct for
certain errors made in prior years. The Company has concluded that
these errors are immaterial to the previously issued financial
statements and has retrospectively revised the comparative amounts
in the consolidated financial statements for the year ended
December 31, 2013. See note 3 of the consolidated financial
statements for the year ended December 31, 2013 for further
information on the nature of the errors and corresponding
quantitative impact on the consolidated balance sheet as at
December 31, 2012 and consolidated statements of operations,
comprehensive income and cash flows for the year ended December 31,
2012.
REVENUE
Three months ended December 31, 2013 to three months ended
December 31, 2012 comparison
|
|
Three months ended December 31, 2013 |
|
Three months ended December 31, 2012 |
$ Change |
% Change |
|
North
America |
$ |
670,540 |
$ |
566,200 |
104,340 |
18.4 |
% |
Europe |
|
173,420 |
|
127,246 |
46,174 |
36.3 |
% |
Rest of World |
|
14,664 |
|
12,154 |
2,510 |
20.7 |
% |
Revenue |
$ |
858,624 |
$ |
705,600 |
153,024 |
21.7 |
% |
The Company's consolidated revenues for the fourth quarter of
2013 increased by $153.0 million or 21.7% to $858.6 million as
compared to $705.6 million for the fourth quarter of 2012. Revenues
increased year-over-year across all operating segments.
Revenues for the fourth quarter of 2013 in the Company's North
America operating segment increased by $104.3 million or 18.4% to
$670.5 million from $566.2 million for the fourth quarter of 2012.
The increase was generally due to an overall increase in North
American OEM light vehicle production, the launch of new programs
during or subsequent to the fourth quarter of 2012, including the
Ford Fusion, GM full size pick-up trucks and Chevrolet Impala, a
$24.8 million increase in tooling revenues, which is typically
dependent on the timing of tooling construction and final
inspection and acceptance by the customer, and the impact of
foreign exchange on the translation of U.S. denominated production
revenue, which had a positive impact on revenue for the fourth
quarter of 2013 of $25.3 million as compared to the fourth quarter
of 2012.
Revenues for the fourth quarter of 2013 in the Company's Europe
operating segment, comprised predominantly of the European
operations of Martinrea Honsel, increased by $46.2 million or 36.3%
to $173.4 million from $127.2 million for the fourth quarter of
2012. The increase was due to the launch of new incremental
aluminum business with Jaguar LandRover at the end of 2012,
including a sub-frame and shock towers for the new Range Rover
Sport, an overall year-over-year increase in European OEM light
vehicle production, an $11.0 million increase in tooling revenues,
a $13.6 million benefit from the impact of foreign exchange on the
translation of Euro denominated production revenue and
year-over-year increased production revenues in the Company's plant
in Slovakia, which continues to ramp-up and launch its backlog of
business.
Revenues for the fourth quarter of 2013 in the Company's Rest of
World operating segment, currently comprised of the Brazilian
operations of Martinrea Honsel and a start-up facility in China in
its early stages, increased by $2.5 million or 20.7% to $14.7
million as compared to $12.2 million for the fourth quarter of
2012. The increase can be attributed to the launch of the Company's
first product in China for the Ford CD4 program, which began to
ramp up at the end of the second quarter of 2013. The increase in
revenues in the Rest of World operating segment would have been
higher had it not been for the translation of Brazilian denominated
revenue which had a negative impact on revenue for the fourth
quarter of 2013 of $0.5 million as compared to the fourth quarter
of 2012.
Overall tooling revenues increased by $35.8 million from $36.6
million for the fourth quarter of 2012 to $72.4 million for the
fourth quarter of 2013.
Year ended December 31, 2013 to year ended December 31, 2012
comparison
|
|
Year ended December 31, 2013 |
|
Year ended December 31, 2012 |
$ Change |
% Change |
|
North America |
$ |
2,523,697 |
$ |
2,297,818 |
225,879 |
9.8 |
% |
Europe |
|
631,184 |
|
547,289 |
83,895 |
15.3 |
% |
Rest of World |
|
67,000 |
|
55,897 |
11,103 |
19.9 |
% |
Revenue |
$ |
3,221,881 |
$ |
2,901,004 |
320,877 |
11.1 |
% |
The Company's revenues for the year ended December 31, 2013
increased by $320.9 million or 11.1% to $3,221.9 million as
compared to $2,901.0 million for the year ended December 31, 2012.
Revenues increased year-over-year across all operating
segments.
Revenues for the year ended December 31, 2013 in the Company's
North America operating segment increased by $225.9 million or 9.8%
to $2,523.7 million from $2,297.8 million for the year ended
December 31, 2012. Revenues in North America for the year ended
December 31, 2013 were negatively impacted by a $31.1 million
year-over-year decrease in tooling revenues, which are typically
dependent on the timing of tooling construction and final
inspection and acceptance by the customer. Excluding tooling
revenues, revenues in the North America operating segment increased
by $257.0 million. The increase was generally due to overall
improved OEM North American light vehicle production, the launch of
new programs during or subsequent to 2012, including the Ford
Escape and Fusion, GM full size pick-up trucks and Chevrolet
Impala, and a $41.4 million benefit from the impact of foreign
exchange on the translation of U.S. dollar denominated production
revenue.
Revenues for the year ended December 31, 2013 in the Company's
Europe operating segment, comprised predominately of the European
operations of Martinrea Honsel, increased by $83.9 million or 15.3%
to $631.2 million from $547.3 million for the year ended December
31, 2012. The increase was due to the launch of new incremental
aluminum business with Jaguar LandRover at the end of 2012,
including a sub-frame and shock towers for the new Range Rover
Sport, an overall year-over-year increase in European OEM light
vehicle production, a $32.0 million increase in tooling revenues, a
$27.7 million benefit from the impact of foreign exchange on the
translation of Euro denominated production revenue and
year-over-year increased production revenues in the Company's plant
in Slovakia, which continues to ramp-up and launch its backlog of
business.
Revenues for the year ended December 31, 2013 in the Company's
Rest of World operating segment increased by $11.1 million or 19.9%
to $67.0 million from $55.9 million for the year ended December 31,
2012. The increase can be attributed to the launch of the Company's
first product in China for the Ford CD4 program, which began to
ramp up at the end of the second quarter of 2013, and a
year-over-year increase in tooling revenues of $6.4 million. The
increase in revenues in the Rest of World operating segment would
have been higher had it not been for the translation of Brazilian
Real denominated production revenue which had a negative impact on
revenue for the year ended December 31, 2013 of $3.7 million as
compared to the year ended December 31, 2012.
Overall tooling revenues increased by $7.3 million from $195.4
million for the year ended December 31, 2012 to $202.7 million for
the year ended December 31, 2013.
GROSS MARGIN
Three months ended December 31, 2013 to three months ended
December 31, 2012 comparison
|
|
Three months ended December 31, 2013 |
|
|
Three months ended December 31, 2012 |
|
$ Change |
% Change |
|
|
|
|
|
|
(Revised*) |
|
|
|
|
Gross margin |
$ |
73,475 |
|
$ |
60,969 |
|
12,506 |
20.5 |
% |
% of revenue |
|
8.6 |
% |
|
8.6 |
% |
|
|
|
* See "Explanatory Note Regarding the Correction of Prior
Period Immaterial Errors" and note 3 to the consolidated financial
statements.
The gross margin percentage for the fourth quarter of 2013,
before adjustments, remained consistent year-over-year at 8.6%.
Excluding the impact of the unusual and other items recorded as
cost of sales for the fourth quarter of 2013 as explained in Table
A under "Adjustments to Net Income", the Company's gross margin
percentage for the fourth quarter of 2013 would have been 9.0%, an
increase over the 8.6% realized in the fourth quarter of 2012.
The increase in gross margin, after adjustments, as a percentage
of revenue was generally due to:
- higher capacity utilization from an overall increase in
year-over-year production revenues including the launch of new
programs during or subsequent to the fourth quarter of 2012;
- a decrease in pension expense resulting from the settlement of
a pension plan;
- improved pricing on certain long term customer contracts;
- productivity and efficiency improvements at certain operating
facilities, including cost savings from the workforce reductions in
Germany completed at the end of 2012; and
- a decrease in launch and other launch-related operational
expenses stemming from the significant ramp up of new program
launches during the second half of 2012.
These factors were partially offset by:
- an increase in the relative amounts of integrator or assembly
work which typically generates lower margins as a percentage of
revenue, although return on capital tends to be higher;
- an increase in tooling revenues which typically earn low or no
margins for the Company;
- unfavourable resolution of commercial disputes;
- program specific launch costs related to new programs that
launched during the quarter or are set to launch and ramp up over
the next few months including the BMW X5, Ford Transit, Ford 2.3L
aluminum engine block, Chrysler 200, the Lincoln version of the
Ford Escape, GM CTS and changes to the GM Malibu platform; and
- operational inefficiencies at certain operating facilities, in
particular, Hopkinsville, Kentucky (see below).
During the fourth quarter of 2013, the Company experienced some
operational issues at its operating facility in Hopkinsville,
Kentucky, as the facility was dealing with new program launches,
customer-requested engineering changes which impacted productivity
and the overall ramp-up in production volumes being experienced in
the automotive industry. The issues were rooted in serious
equipment failures on two of the plant's large tonnage presses
which resulted in incremental premium costs in the form of
expedited freight, outsourcing costs, overtime, increased manpower,
higher scrap levels, sorting and rework costs, launch related
inefficiencies and other costs, all of which negatively impacted
the gross margin for the quarter. The presses are operational again
but are currently not performing at optimal levels. Upgrades to the
presses are planned during the 2014 summer and December holiday
shutdowns in order to reduce the risk of any further failures and
improve the performance of the presses. Notwithstanding the planned
upgrades, operations in Hopkinsville are currently stable and the
plant is now focusing its attention on cost reduction and improving
productivity. Costs are expected to decline and margin expand as
operational improvements are made.
The Company's gross margin percentage for the fourth quarter of
2013 also continued to be positively impacted by new program
launches, including the recently launched new GM pick-up (K2XX)
program. Gross margin is expected to continue to be positively
impacted by incremental new business as the Company continues to
work through the launch of a significant backlog of business over
the next 36 months including the following awarded programs in
addition to the programs referred to above: the next wave of Ford
CD4 in Europe and North America, GM Omega aluminum engine cradle,
GM 31XX (Traverse, SRX), Jaguar LandRover aluminum swivel bearing,
Nissan aluminum I4 engine block, Daimler aluminum transmission
casing and engine cradle for the VW Golf.
Year ended December 31, 2013 to year ended December 31, 2012
comparison
|
|
Year ended December 31, 2013 |
|
|
Year ended December 31, 2012 |
|
$ Change |
% Change |
|
|
|
|
|
|
(Revised*) |
|
|
|
|
Gross margin |
$ |
324,036 |
|
$ |
273,634 |
|
50,402 |
18.4 |
% |
% of revenue |
|
10.1 |
% |
|
9.4 |
% |
|
|
|
* See "Explanatory Note Regarding the Correction of Prior
Period Immaterial Errors" and note 3 to the consolidated financial
statements.
The gross margin percentage for the year ended December 31,
2013, before adjustments, of 10.1% increased as a percentage of
revenue by 0.7% as compared to the gross margin percentage for the
year ended December 31, 2012 of 9.4%. Excluding the unusual and
other items recorded as cost of sales during the years ended
December 31, 2013 and 2012 as explained in Table B under
"Adjustments to Net Income", the gross margin percentage for the
year ended December 31, 2013 increased as a percentage of revenue
by 0.5% to 10.2% from 9.7% for the year ended December 31,
2012.
The increase in gross margin, after adjustments, as a percentage
of revenue was generally due to:
- higher capacity utilization from an overall increase in
year-over-year production revenues including the launch of new
programs during or subsequent to 2012;
- a decrease in pension expense resulting from the settlement of
a pension plan;
- improved pricing on certain long term customer contracts;
- productivity and efficiency improvements at certain operating
facilities, including cost savings from the workforce reductions in
Germany completed at the end of 2012; and
- a decrease in launch and other launch-related operational
expenses stemming from the significant ramp up of new program
launches during the second half of 2012.
These factors were partially offset by:
- an increase in the relative amounts of integrator or assembly
work which typically generates lower margins as a percentage of
revenue, although return on capital tends to be higher;
- an increase in tooling revenues which typically earn low or no
margins for the Company;
- unfavourable resolution of commercial disputes;
- program specific launch costs related to new programs that
launched during the year or are set to launch and ramp up over the
next few months including the BMW X5, Ford Transit, Ford 2.3L
aluminum engine block, the Lincoln version of the Ford Escape, GM
CTS and changes to the GM Malibu platform; and
- operational inefficiencies at certain operating facilities, in
particular, Hopkinsville, Kentucky (as discussed above).
ADJUSTMENTS TO NET
INCOME
(ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY)
Adjusted net earnings exclude certain unusual and other items,
as set out in the following tables and described in the notes
thereto. Management uses adjusted earnings as a measurement of
operating performance of the Company and believes that, in
conjunction with IFRS measures, it provides useful information
about the financial performance and condition of the Company.
TABLE A |
|
|
|
|
|
|
|
For the three months ended |
|
For the three months ended |
|
|
|
|
December 31, 2013 |
|
December 31, 2012 |
|
(a)-(b) |
|
|
|
|
(Revised*) |
|
Change |
|
|
(a) |
|
(b) |
|
|
|
|
|
|
|
|
|
|
NET EARNINGS (A) |
$
(51,425 |
) |
$
(7,052 |
) |
$(44,373 |
) |
|
|
|
|
|
|
|
Add back - Unusual Items: |
|
|
|
|
|
|
Write-down of assets at the Company's operating facility in
Hopkinsville, Kentucky (1) |
29,931 |
|
- |
|
29,931 |
|
Other Impairment of property, plant and equipment (2) |
1,366 |
|
- |
|
1,366 |
|
Restructuring Costs (4) |
- |
|
27,744 |
|
(27,744 |
) |
|
|
|
|
|
|
|
Add back - Other Items: |
|
|
|
|
|
|
Premium external costs related to the Company's operating facility
in Hopkinsville, Kentucky (1) |
10,519 |
|
- |
|
10,519 |
|
External legal and forensic accounting costs related to litigation
(3) |
331 |
|
- |
|
331 |
|
Settlement of customer chargebacks (7) |
- |
|
4,901 |
|
(4,901 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL UNUSUAL AND OTHER ITEMS BEFORE TAX |
$
42,147 |
|
$
32,645 |
|
$9,502 |
|
Write-down of deferred tax asset net of tax impact of above items
(9) |
23,345 |
|
(1,683 |
) |
25,028 |
|
Non-controlling interest on above items |
- |
|
(11,708 |
) |
11,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL UNUSUAL AND OTHER ITEMS AFTER TAX (B) |
$
65,492 |
|
$
19,254 |
|
$46,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET EARNINGS (A + B) |
$ 14,067 |
|
$ 12,202 |
|
$1,865 |
|
|
|
|
|
|
|
|
Number of Shares Outstanding - Basic ('000) |
84,437 |
|
82,995 |
|
|
|
Adjusted Basic Net Earnings Per Share |
$0.17 |
|
$0.15 |
|
|
|
Number of Shares Outstanding - Diluted ('000) |
85,181 |
|
83,285 |
|
|
|
Adjusted Diluted Net Earnings Per Share |
$0.17 |
|
$0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See "Explanatory Note Regarding the Correction of Prior
Period Immaterial Errors" and note 3 to the consolidated financial
statements.
TABLE B |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended |
|
For the year ended |
|
|
|
|
December 31, 2013 |
|
December 31, 2012 |
|
(a)-(b) |
|
|
|
|
(Revised*) |
|
Change |
|
|
(a) |
|
(b) |
|
|
|
|
|
|
|
|
|
|
NET EARNINGS (A) |
$
16,950 |
|
$
37,075 |
|
$(20,125 |
) |
|
|
|
|
|
|
|
Add back - Unusual Items: |
|
|
|
|
|
|
Write-down of assets at the Company's operating facility in
Hopkinsville, Kentucky (1) |
29,931 |
|
- |
|
29,931 |
|
Other Impairment of property, plant and equipment (2) |
1,366 |
|
- |
|
1,366 |
|
Restructuring Costs (4) |
- |
|
35,885 |
|
(35,885 |
) |
|
|
|
|
|
|
|
Add back - Other Items: |
|
|
|
|
|
|
Premium external costs related to the Company's operating facility
in Hopkinsville, Kentucky (1) |
10,519 |
|
- |
|
10,519 |
|
External legal and forensic accounting costs related to litigation
(3) |
331 |
|
- |
|
331 |
|
Executive separation agreement (5) |
- |
|
5,177 |
|
(5,177 |
) |
Impact of a major equipment failure at an operating facility in the
U.S (6) |
- |
|
8,453 |
|
(8,453 |
) |
Settlement of customer chargebacks (7) |
- |
|
4,901 |
|
(4,901 |
) |
Transaction and integration costs associated with the acquisition
of Honsel (8) |
- |
|
581 |
|
(581 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL UNUSUAL AND OTHER ITEMS BEFORE TAX |
$
42,147 |
|
$
54,997 |
|
$(12,850 |
) |
Write-down of deferred tax asset net of tax impact of above items
(9) |
23,345 |
|
(5,398 |
) |
28,743 |
|
Non-controlling interest on above items |
- |
|
(13,182 |
) |
13,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL UNUSUAL AND OTHER ITEMS AFTER TAX (B) |
$
65,492 |
|
$
36,417 |
|
$29,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET EARNINGS (A + B) |
$ 82,442 |
|
$ 73,492 |
|
$8,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares Outstanding - Basic ('000) |
84,093 |
|
82,944 |
|
|
|
Adjusted Basic Net Earnings Per Share |
$0.98 |
|
$0.89 |
|
|
|
Number of Shares Outstanding - Diluted ('000) |
84,985 |
|
83,549 |
|
|
|
Adjusted Diluted Net Earnings Per Share |
$0.97 |
|
$0.88 |
|
|
|
|
|
|
|
|
|
|
* See "Explanatory Note Regarding the Correction of Prior
Period Immaterial Errors" and note 3 to the consolidated financial
statements.
(1) Impact of Operational Issues at the Company's Operating
Facility in Hopkinsville, Kentucky
During the fourth quarter of 2013, the Company experienced some
operational issues at its facility in Hopkinsville, Kentucky, as
the facility was dealing with new program launches,
customer-requested engineering changes which impacted productivity
and the overall ramp-up in production volumes being experienced in
the automotive industry. The issues were rooted in serious
equipment failures on two of the plant's large tonnage presses
which resulted in incremental premium costs in the form of
expedited freight, outsourcing costs, overtime, increased manpower,
higher scrap levels, sorting and rework costs, launch related
inefficiencies and other costs, all of which negatively impacted
the performance of the plant during the quarter. The presses are
operational again but are currently not performing at optimal
levels. Upgrades to the presses are planned during the summer and
December holiday shutdowns in order to reduce the risk of any
further failures and improve the performance of the presses.
In light of these recent operational issues and in conjunction
with the Company's annual business planning cycle, the Company
recorded a year-end partial write-down of the assets for the
Hopkinsville, Kentucky facility. The year-end write-down includes
an impairment of PP&E and intangible assets of $27.7 million
and a write-down of inventories to net realizable value (recorded
in cost of sales) of $2.2 million. Under IFRS, the impairment of
PP&E and intangible assets could reverse in the future when the
profitability of the Hopkinsville facility improves. The add-back
of $10.5 million of premium external costs for purposes of adjusted
net income was limited to costs that had been eliminated by the end
of the quarter or shortly thereafter and includes $8.6 million in
customer charged premium expedited freight (recorded in SG&A
expense) and $1.9 million of incremental inbound freight and
premium charges from third party suppliers for temporarily
outsourced stampings (recorded in cost of sales).
Other premium costs and inefficiencies (including the impact of
outsourced stampings not included in the $1.9 million above)
resulting from the operational issues were not added back for
purposes of adjusted net earnings. These costs and inefficiencies
are expected to subside over time as the operations continue to
stabilize and launch related activity decreases. The Hopkinsville
plant is focused on cost reduction and improving the productivity
and efficiency of the operations with the objective of expanding
margin.
(2) Other Impairment of Property, Plant and Equipment
In conjunction with its annual business planning cycle, the
Company recorded additional impairment charges on PP&E of $1.4
million related to specific manufacturing equipment in North
America no longer in use.
(3) External Legal and Forensic Accounting Costs Related to
Litigation
As previously disclosed, on September 26, 2013, a former
director of the Company, filed a statement of claim against the
Company making certain allegations against the Company, certain
directors and officers, and two Martinrea suppliers. Supervision of
the litigation has been delegated to a Special Committee of the
Board of Directors. Legal counsel has been retained to advise the
Special Committee with respect to litigation and legal matters. In
addition, the Special Committee has retained PricewaterhouseCoopers
LLP as its independent financial experts to provide such financial
and accounting advice and forensic services as the Special
Committee may deem appropriate. The costs added back for adjusted
net income purposes reflects the legal and forensic accounting
costs incurred by the Company to December 31, 2013 in relation to
this matter and not covered by insurance (recorded in SG&A
expense).
(4) Restructuring Costs
As part of the acquisition of Honsel, a certain level of
restructuring was planned in order to be cost competitive over the
long term, in particular at the Company's German facilities in
Meschede and Soest. The restructuring efforts commenced immediately
after the closing of the acquisition on July 29, 2011. In
connection with these restructuring activities, $28.5 million of
primarily employee related severance was recognized during the year
ended December 31, 2012 of which $26.0 million was recognized
during the fourth quarter of 2012. No such restructuring costs were
incurred during 2013. However, additional employee related
severance associated with the Martinrea Honsel operations may be
incurred in the future.
In addition, during the fourth quarter of 2011, the Company
began the process of closing one of its small operating facilities
in Mexico. The existing business and equipment of this facility was
moved to other Company facilities in Mexico including a new
facility the Company opened in Silao, Mexico in 2011. Restructuring
costs relating to this closure amounted to $5.0 million for the
year ended December 31, 2012 of which $1.4 million was incurred in
the fourth quarter of 2012, consisting primarily of employee
related severance and the dismantling and transporting of PP&E
between Company facilities. The closure of this facility was
completed during the fourth quarter of 2012. As such, no further
costs related to this closure are expected to be incurred.
Costs associated with other restructuring activities totaled
$2.4 million during 2012, of which $0.3 million was incurred in the
fourth quarter of 2012, consisting of employee related severance
relating to the right sizing of certain other manufacturing
facilities.
(5) Executive separation agreement
On June 29, 2012, the Company announced that Nat Rea stepped
down as Vice Chairman and Director of Martinrea, as of such date,
to pursue other opportunities. As part of the separation agreement
and based on the terms of his employment contract, the Company paid
Mr. Rea $5.2 million which was expensed during the second quarter
of 2012 and included in SG&A expense.
(6) Impact of a major equipment failure at an operating facility
in the U.S.
During the month of June 2012, a press in one of the Company's
U.S. operating facilities experienced a significant failure and was
not operational for approximately 23 days. As a consequence and due
to the lack of press capacity at the facility, approximately thirty
dies were outsourced to external stamping companies which resulted
in the following incremental costs:
- external stamping fees;
- transportation costs to move the dies to the external stamping
companies and stamped parts back to the Martinrea operating
facility for assembly;
- additional manpower to ensure the quality of parts stamped by
external suppliers;
- sorting and rework costs; and
- dedicated external contractor support to get the press
operational again.
These incremental costs, which totaled $8.5 million for 2012
(recorded in cost of sales), are non-recurring in nature and had a
significant impact on the performance of the facility during June,
July and August 2012.
(7) Settlement of Customer Chargebacks
In conjunction with the surge in customer volume requirements
related to the significant launch activity in the U.S. during the
second half of 2012, the Company incurred $4.9 million in customer
chargebacks (recorded in SG&A expense) relating mainly to
customer production downtime and premium freight costs paid by the
customer. The charges were settled with the corresponding customers
and expensed during the fourth quarter of 2012.
(8) Transaction costs associated with the acquisition of
Honsel
On July 29, 2011, the Company closed the purchase of the
operations of Honsel to form the Martinrea Honsel Group. Martinrea
joined with Anchorage in the transaction and, consequently, owns
55% of the Martinrea Honsel Group with Anchorage owning the
remaining 45%. The Company expensed $0.6 million (recorded as
SG&A expense) in transaction and integration costs related to
the acquisition during the first quarter of 2012.
(9) Write-down of Deferred Tax Asset
As at December 31, 2013, the Company recorded a $38.8 million
partial write-down of deferred tax assets in the Company's U.S.
operations generated predominantly from tax losses. $33.7 million
of the year-end partial write-down relates to current year tax
losses not benefitted (but which were being benefitted throughout
the year) and the remainder represents the write-down of previously
recognized deferred tax assets. For purposes of adjusted net
income, the year-end partial write-down of the deferred tax assets
has been netted against the tax impacts of the unusual and other
items described above (determined before any consideration of the
year-end write-down), which amounted to $15.5 million.
In assessing the realization of deferred tax assets, the Company
considers whether it is more likely than not that some portion of
its deferred tax assets will not be realized. The ultimate
realization of deferred tax assets is dependent upon the generation
of future taxable income; however, forming a conclusion on the
realization of deferred tax assets is difficult when there is
negative evidence, such as cumulative losses in recent years, in
the jurisdictions to which the deferred tax assets relate. As at
December 31, 2013, the Company concluded that given recent
historical tax losses in the U.S., in particular more recently in
Hopkinsville, Kentucky, and uncertainty as to the timing of when
the Company would be able to generate the necessary level of
earnings to recover these deferred tax assets, it was appropriate
to record a partial write-down of the deferred tax assets in the
U.S. As at December 31, 2013, after the write-down, the net
deferred tax asset associated with the U.S. operations is $28.6
million. The partial write-down could reverse once the
profitability of the U.S. operations improve.
NET EARNINGS
(ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY)
Three months ended December 31, 2013 to three months ended
December 31, 2012 comparison
|
|
Three months ended December 31, 2013 |
|
|
Three months ended December 31, 2012 |
|
Change |
% Change |
|
|
|
|
|
|
(Revised*) |
|
|
|
|
Net Earnings |
$ |
(51,425 |
) |
$ |
(7,052 |
) |
44,373 |
-629.2 |
% |
Adjusted net earnings |
$ |
14,067 |
|
$ |
12,202 |
|
1,865 |
15.3 |
% |
Net earnings per common share |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.61 |
) |
$ |
(0.09 |
) |
|
|
|
|
Diluted |
$ |
(0.60 |
) |
$ |
(0.08 |
) |
|
|
|
Adjusted net earnings per common share |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.17 |
|
$ |
0.15 |
|
|
|
|
|
Diluted |
$ |
0.17 |
|
$ |
0.15 |
|
|
|
|
* See "Explanatory Note Regarding the Correction of Prior
Period Immaterial Errors" and note 3 to the consolidated financial
statements.
Net earnings, before adjustments, for the fourth quarter of 2013
decreased by $44.4 million from a net loss of $7.1 million for the
fourth quarter of 2012 to a net loss of $51.4 million for the
fourth quarter of 2013. Excluding unusual and other items incurred
during these two quarters as explained in Table A under
"Adjustments to Net Income", the net earnings for the fourth
quarter of 2013 increased to $14.1 million or $0.17 per share, on a
basic and diluted basis, in comparison to adjusted net earnings of
$12.2 million or $0.15 per share, on a basic and diluted basis, for
the fourth quarter of 2012.
The adjusted net earnings for the fourth quarter of 2013, as
compared to the fourth quarter of 2012, were positively impacted by
the following:
- an increase in gross margin earned on higher year-over-year
revenues (as discussed above);
- a year-over-year increase in net foreign exchange gain as a
result of the recent weakening of the Canadian dollar; and
- a lower adjusted effective tax rate (excluding the partial
write-down of the U.S. deferred tax assets recorded as at December
31, 2013) due generally to mix of earnings driven by losses in the
U.S., which are taxed at a significantly higher rate as compared to
other jurisdictions in which the Company operates.
These factors were partially offset by a year-over-year increase
in SG&A (as discussed above) and a year-over-year increase in
research and development costs resulting from an increase in
amortization of development costs and an increase in research and
development costs that did not meet the criteria for
capitalization.
The contribution of Martinrea Honsel to net earnings for the
fourth quarter of 2013, after factoring in the interest costs
incurred by Martinrea International Inc. on the debt issued to
finance the acquisition and operations of Martinrea Honsel,
increased to $0.10 per share from $0.01 per share in the fourth
quarter of 2012, after adjustments. The increase was generally due
to the addition of new incremental aluminum business with Jaguar
LandRover, generally higher production volumes in Europe, improved
pricing on certain long term customer contracts and ongoing
productivity and efficiency improvements at certain facilities, in
particular in Germany.
On December 18, 2013, the Company issued a press release which,
among other things, provided an update on its anticipated net
earnings for the fourth quarter of 2013 and that such net earnings
would be negatively impacted as a result of unanticipated
operational issues at the Company's Hopkinsville plant. A copy of
the press release is available under the Company's SEDAR profile at
www.sedar.com.
Year ended December 31, 2013 to year ended December 31, 2012
comparison
|
|
Year ended December 31, 2013 |
|
Year ended December 31, 2012 |
Change |
|
% Change |
|
|
|
|
|
(Revised*) |
|
|
|
|
Net Earnings |
$ |
16,950 |
$ |
37,075 |
(20,125 |
) |
-54.3 |
% |
Adjusted net earnings |
$ |
82,442 |
$ |
73,492 |
8,950 |
|
12.2 |
% |
Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.20 |
$ |
0.45 |
|
|
|
|
|
Diluted |
$ |
0.20 |
$ |
0.44 |
|
|
|
|
Adjusted earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.98 |
$ |
0.89 |
|
|
|
|
|
Diluted |
$ |
0.97 |
$ |
0.88 |
|
|
|
|
* See "Explanatory Note Regarding the Correction of Prior
Period Immaterial Errors" and note 3 to the consolidated financial
statements.
Net earnings, before adjustments, for the year end December 31,
2013 decreased by $20.1 million to $17.0 million from net earnings
of $37.1 million for the year ended December 31, 2012. Excluding
the unusual and other items incurred during the years ended
December 31, 2013 and 2012, as explained in Table B under
"Adjustments to Net Income", net earnings for the year end December
31, 2013 increased to $82.4 million or $0.98 per share, on a basic
basis, and $0.97 on a diluted basis, as compared to net earnings of
$73.5 million or $0.89 per share, on a basic basis, and $0.88 per
share on a diluted basis, for the year ended December 31, 2012.
The adjusted net earnings for the year ended December 31, 2013,
as compared to the year ended December 31, 2012, were positively
impacted by the following:
- an increase in gross margin earned on higher year-over-year
revenues (as discussed above);
- a year-over-year decrease in the amortization of customer
contracts and relationships (as discussed above); and
- a year-over-year increase in net foreign exchange gain as a
result of the recent weakening of the Canadian dollar;
These factors were partially offset by:
- a year-over-year increase in SG&A (as discussed
above);
- a year-over-year increase in interest expense on generally
higher debt levels; and
- a year-over-year increase in research and development costs
resulting from an increase in amortization of development costs and
an increase in research and development costs that did not meet the
criteria for capitalization.
The contribution of Martinrea Honsel to net earnings for the
year ended December 31, 2013, after factoring in the interest costs
incurred by Martinrea International Inc. on the debt issued to
finance the acquisition and operations of Martinrea Honsel,
increased to $0.27 per share from $0.14 per share during the year
ended December 31, 2012, after adjustments. The increase was
generally due to the addition of new incremental aluminum business
with Jaguar LandRover, generally higher production volumes in
Europe, improved pricing on certain long term customer contracts
and ongoing productivity and efficiency improvements at certain
facilities, in particular in Germany.
CAPITAL
EXPENDITURES
Three months ended December 31, 2013 to three months ended
December 31, 2012 comparison
|
|
Three months ended December 31, 2013 |
|
Three months ended December 31, 2012 |
Change |
|
% Change |
|
|
|
|
|
(Revised*) |
|
|
|
|
Capital Expenditures |
$ |
46,546 |
$ |
57,897 |
(11,351 |
) |
(19.6 |
%) |
* See "Explanatory Note Regarding the Correction of Prior
Period Immaterial Errors" and note 3 to the consolidated financial
statements.
Capital expenditures for PP&E, including the year-over-year
change in unpaid amounts at December 31, decreased by $11.3 million
to $46.5 million in the fourth quarter of 2013 from $57.9 million
in the fourth quarter of 2012. Capital expenditures as a percentage
of revenue decreased to 5.4% for the fourth quarter of 2013
compared to 8.2% for the fourth quarter of 2012. Despite the
decrease, while capital expenditures are made to refurbish or
replace assets consumed in the normal course of business and for
productivity improvements, a large portion of the investment in the
fourth quarter continues to be for manufacturing equipment for
programs launching over the next 24 months.
Year ended December 31, 2013 to year ended December 31, 2012
comparison
|
|
Year ended December 31, 2013 |
|
Year ended December 31, 2012 |
Change |
|
% Change |
|
|
|
|
|
(Revised*) |
|
|
|
|
Capital Expenditures |
$ |
189,065 |
$ |
200,882 |
(11,817 |
) |
(5.9 |
%) |
* See "Explanatory Note Regarding the Correction of Prior
Period Immaterial Errors" and note 3 to the consolidated financial
statements.
Capital expenditures for PP&E, including the year-over-year
change in unpaid amounts at December 31, decreased by $11.8 million
to $189.1 million for the year ended December 31, 2013 from $200.9
million during the year ended December 31, 2012. Capital
expenditures as a percentage of revenue decreased to 5.9% for the
year ended December 31, 2013 from 6.9% for the year ended December
31, 2012.
DIVIDEND
A cash dividend of $0.03 per share has been declared by the
Board of Directors payable to shareholders of record on April 17,
2014 on or about April 30, 2014.
CONFERENCE CALL
DETAILS
A conference call to discuss these results will be held on
Monday, March 31, 2014 at 8:00 a.m. (Toronto time) which can be
accessed by dialing (416) 340-8410 or toll free (866) 225-2055.
Please call 10 minutes prior to the start of the conference
call.
If you have any teleconferencing questions, please call Andre La
Rosa at (416) 749-0314.
There will also be a rebroadcast of the call available by
dialing (905) 694-9451 or (800) 408-3053 (conference id 8751014#).
The rebroadcast will be available until April 14, 2014.
FORWARD-LOOKING
INFORMATION
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 expectations and guidance as to revenue and gross
margin percentage (and earnings per share), expansion of gross
margin, including due to positive impact from launches, 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 launches, the Company's
expectations as to the contribution of Martinrea Honsel to the
Company's business, statements as to the progress of operational
improvements and operational efficiencies, the Company's
expectations regarding the future amount and type of restructuring
expenses to be expensed, statements as to the reduction of costs,
including the expectation of a reduction in costs and
inefficiencies and stabilization of and operational improvements at
the Hopkinsville plant and expectations as to the continued
operation of and successful upgrades to the presses, the Company's
views on the long term outlook of the automotive industry and
economic recovery, the Company's ability to capitalize on
opportunities in the automotive industry and the successful
integration of acquisitions, statements with respect to the Special
Committee report including relating to internal controls and the
determinations therein, 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.
These factors should be considered carefully, and readers should
not place undue reliance on the Company's forward-looking
statements. The Company has no intention and undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
The common shares of Martinrea trade on The Toronto Stock
Exchange under the symbol "MRE".
Fred Di TostoChief Financial OfficerMartinrea International
Inc.(416) 749-0314(289) 982-3001
Martinrea (TSX:MRE)
Historical Stock Chart
From Jul 2024 to Aug 2024
Martinrea (TSX:MRE)
Historical Stock Chart
From Aug 2023 to Aug 2024