CHICAGO Shiloh Industries Inc.s earnings more than doubled in its fiscal third quarter thanks in large part to acquisitions and organic growth as it launches new products and wins new platform business from automakers.
The Valley City, Ohio-based metal processor posted net income of nearly $5.3 million for the three months ended July 31, up from $2.4 million in the same period last year on sales that increased 16.9 percent to $166.06 million. Net income for the first nine months of its fiscal year jumped 52.7 percent to more than $15.1 million from $9.9 million a year earlier on a 12.9-percent increase in sales to $493.59 million.
"We are pleased with our third-quarter performance. We continue to smoothly launch products for our customers and are executing on our third acquisition after integrating two others," president and chief executive officer Ramzi Hermiz said during an Aug. 29 conference call.
With its Aug. 2 purchase of Contech Castings LLC, Shiloh is further branching out into lightweight materials that automakers seek.
"Shiloh is committed to leading with technology and innovation, (and is) acting with urgency, purpose and speed," Hermiz said. "We have strengthened (the company) both with aluminum and steel casting and stamping (capabilities)."
Shiloh spent about $54.9 million to acquire Contech, which produces high-pressure, thin-wall aluminum die cast parts for the auto industry at four foundries in Indiana, Michigan and Tennessee. This is atop its December purchases of Albany-Chicago Co. LLC for $55 million and a stamping plant in Anniston, Ala., from Atlantic Tool & Die-Alabama Inc. (Its purchase price was not disclosed but the business was valued at roughly $6.5 million.)
"We are trying to build an all-star team and we are pleased with the results so far. The two (previous) acquisitions have achieved the objectives we expected," Hermiz said.