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Remy suffers quarterly loss despite improving sales

October 30, 2014

Pendleton-based manufacturer Remy International Inc. saw a big bump in sales in its latest quarter but took a sizable loss after paying part of a legal settlement and dealing with costs associated with its recent acquisition of USA Industries.

Remy on Wednesday reported a loss of $11.1 million, or 35 cents per share, in the third quarter ended Sept. 30, compared with a profit of $10. 4 million, or 33 cents, in the same period of 2013.

Revenue jumped 9 percent, to $262.8 million, but missed analyst expectations of $279.3 million.

As part of a settlement agreement over a patent dispute with Italian manufacturer Tecnomatic SPA, Remy made a $16 million cash payment in September. It will make another $16 million payment before March 15.

The maker of alternators, starter motors and electric traction motors said USA Industries, which it acquired in January, lost $1.7 million “due to inefficiencies as a result of the announced closure of the New York facilities and impact of a flood during the quarter.”

"The third quarter was certainly an active and challenging period for us with many moving parts,” Remy CEO Jay Pittas said in a written statement. “Despite the distractions, sales grew 9 percent, outpacing the market, with year-over-year increases across all product lines.”

Remy stock was down nearly 5 percent Thursday morning, to $17.23 per share.

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