Exco Results For Second Quarter Ended March 31, 2021 - Seite 2

The Casting and Extrusion segment reported sales of $49.1 million for the second quarter – an increase of $2.3 million, or 5%, from the same period last year. Excluding the negative impact of foreign exchange movements, the segment’s sales were up 11% and continue to rebound and exceed pre-COVID-19 levels. Segment sales continued the quarterly progression from the low in Q4 F2020 especially in the Extrusion and Castool groups. Extrusion group sales were higher during the quarter as sales at all 6 locations were strong, reflecting high demand for extrusion tools across North and South America across all industry segments. At Castool, the group’s revenues were also higher for the quarter and year-to-date. Demand for Die-Cast consumable tooling has been the primary driver of Castool’s strong sales, but orders for larger capital goods in extrusion end markets increased through the second quarter. The Large Mould group sales were down in the quarter as customers delayed shipping dates on existing programs, however inventories increased in the quarter and new business from current and new customers continues to outpace shipments for this group.

Consolidated net income for the second quarter was $11.7 million or basic and diluted earnings of $0.30 per share compared to $9.5 million or $0.24 per share in the same quarter last year – an increase in net income of 23%. Year-to-date, consolidated net income was $22.7 million or $0.58 per basic share compared to $17.6 million or $0.44 per basic share last year – an increase in net income of 29%. The consolidated effective income tax rate of 22% in the current quarter was the same as the prior year period and the first quarter F2021.

The Automotive Solutions segment reported pre-tax profit of $9.4 million in the second quarter – consistent with the same quarter last year. For the quarter, the segment maintained traditional profitability despite the slight sales decline through continued cost discipline. In addition, new product launches and a favourable sales mix were offset by ramp-up costs for future programs, supply chain challenges, raw material cost inflation, and fluctuations with customer releases caused by uncertainty due to the microchip shortage. Management remains focused on improving the efficiency of its operations and reducing its overall cost structure. Pricing discipline also remains a focus and new program awards include management’s expectations for higher future costs.