Financial Results and Suppliers and Auto Industry and Manufacturers and Remy International and Manufacturing & Technology

Remy International reports $138M annual profit

February 19, 2013

A one-time tax benefit more than doubled Remy International Inc.’s annual profit to $138.6 million, or $4.47 per share, the Pendleton-based manufacturer reported late Monday.

Sales slid 5 percent in 2012, to $1.1 billion, pushing down the company’s operating profit 19 percent, to $97.9 million.

But $71.2 million in income tax benefits helped boost the bottom line.

Remy also reported a $15.9 million profit on $268.3 million in sales for the fourth quarter. Fourth-quarter profit rose 33.6 percent over 2011, but sales declined 6 percent.

The company manufactures and remanufactures alternators, starters and electric traction motors. About 6,500 people work for the auto supplier worldwide, with about 400 of them in Indiana.

The hybrid vehicle market saw slower-than-expected  growth last year, but overseas sales helped boost sales, Remy CEO John Weber said in a prepared statement.

The Chinese market will be especially important to the company in the next few years, Weber said. The company finished building a factory and engineering center in Wuhan, China, in 2012.

Remy also completed an initial public offering last year.

Remy shares opened Tuesday at $18 a share, up from $15.85 on Dec. 13, the day of its IPO.

The company declared a 10-cent quarterly dividend, payable Feb. 28, on its common shares.

Other recent changes at Remy included Weber’s Feb. 1 announcement that he intends to step down as CEO at the end of February. He will leave his post after seven years and become a board director.

 

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