In This Article:
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Consolidated Sales: $143.6 million, down 8% from $156.7 million in the same quarter last year.
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Net Income: $4.2 million, compared to $5.6 million in the same quarter last year.
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Earnings Per Share (EPS): $0.11, down from $0.15 in the prior year quarter.
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Effective Tax Rate: 35.8%, up from 23.6% in the prior year period.
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Automotive Solutions Sales: $72.1 million, a decrease of 13% from the same quarter last year.
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Automotive Solutions Pretax Earnings: $4.8 million, a decrease of 41% from the same quarter last year.
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Casting and Extrusion Sales: $71.4 million, a decrease of 3% from the same period last year.
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Casting and Extrusion Pretax Earnings: $3.7 million, an increase of 4% from the same quarter last year.
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Cash from Operating Activities: $10.4 million during the quarter.
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Free Cash Flow: $3.8 million after maintenance fixed asset expenditures.
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Long-term Debt Reduction: Reduced by $10 million with surplus cash.
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Cash and Debt Position: $19 million in cash, $96 million in bank and long-term debt, and $56 million availability on credit facility.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Exco Technologies Ltd (EXCOF) reported strong quoting activity and new program awards, indicating robust demand for its products.
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The company is benefiting from secular trends such as the increasing use of aluminum across industries and the growth of OEM vehicle accessories.
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Despite high transaction prices, consumer vehicle sales in the US remain robust, with an annualized sales rate of around 16 million units.
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Exco Technologies Ltd (EXCOF) is implementing measures like automation and headcount reductions to mitigate margin pressures.
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The company's financial position remains strong, with a solid balance sheet and availability on its credit facility supporting strategic initiatives.
Negative Points
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Exco Technologies Ltd (EXCOF) faced challenges due to lower automotive production levels, with a 3% decline in the US and over 10% in Europe.
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Sales in the Automotive Solutions segment decreased by 13% due to lower production volumes, customer-driven delays, and unfavorable vehicle mix.
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Margins were compressed due to lower overhead absorption from weaker volumes, higher labor costs, and severance expenses.
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The company experienced uneven volumes in the Casting and Extrusion segment, with lower activity in December due to extended plant shutdowns.
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Exco Technologies Ltd (EXCOF) faces challenges from rising labor costs in Mexico, particularly due to significant minimum wage increases.