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
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
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,"
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