CHICAGO Automotive steel blanks manufacturer Shiloh Industries Inc. reported strong gains in quarterly and annual profits as the light vehicle sector continued to rebound.
The Valley City, Ohio-based company reported net income of $13.5 million in its fiscal year ended Oct. 31, a 72.4-percent improvement over $7.8 million in fiscal 2011. At the same time, its sales rose 13.2 percent to nearly $586.1 million from $517.7 million the previous fiscal year.
Meanwhile, the companys fourth-quarter net income grew 65 percent year on year to $3.6 million on revenues that rose 3.6 percent to $148.9 million.
Shiloh largely attributed the uptick to a recovery in the North American car and light truck industry, which saw production volumes rise 19.3 percent in the companys fiscal 2012, led by Asian original equipment manufacturers (OEMs). Asian OEMs saw volumes shoot up 32.3 percent over the same period as the companies rebounded from the 2011 earthquake and tsunami in Japan and floods in Thailand, Shiloh said in its year-end earnings release.
For the traditional American OEMs, where Shiloh has a higher concentration of parts, overall production volumes increased by 11 percent, it said.
"Along with the increased vehicle build levels, our improved operating leverage driven by our focus on effective cost management and improvement in operating efficiencies is reflected in our gross profit improvement," president and chief executive officer Ramzi Hermiz said.
Shiloh designs, engineers and manufactures first-operation blanks, engineered welded blanks, complex stampings and modular assemblies serving the body-in white, emission, powertrain and seating needs of OEM and Tier 1 customers, including Detroit-based General Motors Co., Auburn Hills, Mich.-based Chrysler Group LLC and Dearborn, Mich.-based Ford Motor Co.
Additionally, Shiloh provides such intermediate steel processing services as oiling, leveling, cutting to length, slitting, edge-trimming of hot- and cold-rolled steel coils and inventory control services for automotive and steel industry customers.
As of Oct. 31, Shilohs 14 North American plants were operating at 56 percent of capacity, up from 46.8 percent at the same time last year, the company said. Shiloh defines capacity as 20 working hours per day and five days per week.