CHICAGO Shiloh Industries Inc. generated higher earnings and sales and in its fiscal fourth quarter due in part to the rapid integration of aluminum die casting assets.
The Valley City, Ohio-based metal processor posted net income of $6.5 million for the three months ended Oct. 31, up 80.6 percent from $3.6 million in the same period a year earlier, on sales that increased 38.8 percent to $206.6 million. Net income for the fiscal year jumped 59.5 percent to $21.57 million from $13.53 million the previous year on sales that increased 19.5 percent to a record $700.19 million.
"We continue to smoothly launch new products and our Contech Casting LLC plants (acquired in August) brought $60 million in annual sales," president and chief executive officer Ramzi Hermiz said during a Dec. 20 conference call.
As expected, the Contech acquisition brought Shiloh new customers and it has been cross-selling steel blanks to castings customers and castings to blanks customers, Hermiz said. When the company works with engineers at automakers, it can now present two different material/design solutions for a subassembly such as a shock tower.
After launching 100 new products in fiscal 2013, "we are not only well positioned to leverage body-in-white and chassis components, we are leveraging powertrain applications," he said "And with (Contechs P2000) squeeze casting and ThinTech vacuum casting technology, we are able to (produce structural parts) for 8-, 9- and 10-speed transmissions."
Hermiz said Shiloh is investing early in the vehicle design cycle"even to working with new concepts"to be ready for production volumes when they come. As a result, Shiloh was not hit with constraints in output like some auto suppliers were this year.
Tom Dugan, vice president of finance and treasurer, said Shiloh will spend at least 25 percent more next year on capital projects. That will help the company continue to "bring speed to the marketplace," Hermiz said.
The company also is winning business by demonstrating how light-weighting reduces costs and bolsters efficiencies throughout the supply chain. "We redesigned the rear door for a (Chevrolet) Malibu, reducing gross weight by over 13 pounds," Hermiz said. "That makes our service more of a product solution rather than merely a commodity solution."