PENDLETON, Ind., April 8 /PRNewswire/ -- Remy International, Inc., a leading worldwide manufacturer, remanufacturer, and distributor of heavy duty systems, starters and alternators, locomotive products and hybrid technology, announced today its operating results for 2008. Sales for the year were $1,101 million compared to $1,129 million a year earlier, a 2.5% decrease. Earnings before interest, taxes, depreciation, amortization, and restructuring charges (EBITDAR) for the year increased 75% to $96.3 million from $53.9 million in 2007. Gross profit less S,G&A increased 143% to $74.6 million in 2008 from $30.7 million in 2007.
"I am pleased to report that in this difficult and challenging market, Remy met the goals set forth in the disclosure statement, reporting EBITDAR of $96.3 million for 2008," stated John Weber, Remy International President and Chief Executive Officer. He continued, "We feel this is incredible performance during the industry meltdown as we delivered on the projected EBITDAR in the Solicitation and Disclosure Statement we published as part of our restructuring almost two years ago. It is not news that our markets are materially different than those foreseen in those disclosure statements.
"Our results reflect the benefits of sales mix, price actions, continued aggressive cost controls, and savings resulting from our Global Savings Program initiatives. These results were achieved in spite of dramatic vehicle production declines in the US market. Poor economic conditions also impacted our Heavy Duty and Aftermarket Sales in the last half of 2008. We consolidated facilities closing 14 facilities and reduced headcount 20%. Our liquidity is fully sufficient to meet our needs and we met all covenant requirements. Though we expect 2009 to be another challenging year, as we did in 2008, we are ready to take actions to meet these challenges head-on.
"In today's highly volatile marketplace, it would be imprudent at best to forecast 2009 performance. The projections delineated in the disclosure statements of 2007 are no longer relevant. I can say with certainty, however, that the Remy team is dedicated to delivering superior performance. We have shown we know how to do that and will continue to deliver. We expect that we will have sufficient liquidity and be able to meet all bank covenants in 2009."
This press announcement may contain forecasts, projections, expectations, or opportunities regarding Remy that are "forward-looking statements" as defined in the Private Securities Litigation Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results, including, but not limited to, future financial results and liquidity, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive and transportation industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions, in addition to other factors identified in Remy International statements.
A copy of 2008 financial results is available on the Remy International Website at http://www.remyinc.com under Investor Relations.
