Decoma announces earnings advisory for fourth quarter and year-end 2004
2005年2月19日 - 6:31AM
PRニュース・ワイアー (英語)
Decoma announces earnings advisory for fourth quarter and year-end
2004 CONCORD, ON, Feb. 18 /PRNewswire-FirstCall/ -- Decoma
International Inc. (TSX:DEC.SV.A; NASDAQ:DECA) today announced an
earnings advisory for the fourth quarter and year ended December
31, 2004. All values are expressed in U.S. dollars. The financial
information included in this advisory is subject to final review
and approval of Decoma's consolidated financial statements for
these periods by Decoma's Audit Committee and Board of Directors.
Decoma expects their review and approval of the financial
statements will be completed in March 2005. The Company expects
total sales for the fourth quarter of 2004 to be in the range of
$690 million to $700 million compared to $646 million for the
fourth quarter of 2003. For the full year 2004, total sales are
expected to be in the range of $2,680 million to $2,690 million
compared to $2,356 million for 2003. Operating income for the
fourth quarter of 2004 is expected to be a loss in the range of $27
million to $29 million compared to income of $18.5 million for the
fourth quarter of 2003. For the full year 2004, operating income is
expected to be in the range of $69 million to $71 million compared
to $150.8 million for 2003. Operating income represents earnings
before interest, equity income and taxes and is consistent with the
Company's prior financial statement presentation of operating
income. The expected operating loss in the fourth quarter of 2004
includes the impact of approximately $37 million of other charges.
These charges relate to the previously disclosed Anotech
consolidation plan in North America (approximately $18 million) and
the Prometall and Decotrim impairment charges in Europe
(approximately $19 million). Comparative operating income for the
fourth quarter of 2003 includes $23.8 million of other charges in
Europe as a result of the Company's continental Europe paint
capacity consolidation plan and United Kingdom impairment charges.
Excluding other charges, operating income is expected to be in the
range of $8 million to $10 million in the fourth quarter of 2004
compared to $42.3 million in the fourth quarter of 2003. The
majority of this expected decline relates to the Company's European
segment which incurred significant operating losses in the fourth
quarter of 2004. As previously disclosed, these losses related
primarily to three of the Company's European facilities, Belplas,
Decotrim and Prometall. Losses at these facilities overshadowed
improvements elsewhere in Europe and contributions from new program
launches. Operating income in North America for the fourth quarter
of 2004 is also expected to be down compared to the fourth quarter
of 2003. However, contributions from new program launches partially
offset the impact of increased start-up losses at Decostar, sealing
program development and launch costs at the Company's Co-Ex-Tec
facility, continuing customer pricing pressures and increases in
raw material costs. Excluding other charges, operating income for
the full year 2004 is expected to be in the range of $105 million
to $107 million compared to $174.6 million in 2003. Going forward,
earnings are expected to continue to be impacted by losses at
Belplas, and to a reduced extent at Decotrim and Prometall, and by
continued competitive pricing pressures and raw material cost
increases. In addition, the first half of 2005 is expected to be
negatively impacted by increased costs at Decostar as it launches
and ramps up various Mercedes programs. In the latter part of 2005,
the Company expects to begin to realize the benefits of the Anotech
and continental Europe paint capacity consolidated plans as well as
other improvements in Europe and at Decostar once production has
ramped up. Quarterly Dividend ------------------ If Magna
International Inc.'s ("Magna") proposed privatization of Decoma is
approved by Decoma shareholders at the upcoming February 28, 2005
Decoma shareholders' meeting and the other conditions to the
completion of the transaction are satisfied, Decoma expects that
the transaction will be completed on or about March 6, 2005. At
that time, those Decoma shareholders who have elected to receive
(or have been deemed to receive) Magna Class A Subordinate Voting
Shares in respect of their Decoma shares will become shareholders
of Magna. Payment of dividends on Magna's Class A Subordinate
Voting Shares is at the discretion of Magna's Board of Directors.
Assuming that Decoma's privatization is completed at that time,
Decoma understands that any dividend declared by Magna's Board of
Directors in respect of its fourth quarter ended December 31, 2004
will be available to those Decoma shareholders who have become
Magna shareholders, based upon the number of Magna Class A
Subordinate Voting Shares they hold as of Magna's dividend record
date, which is expected to be after March 6, 2005. Payment of
dividends on Decoma's Class A Subordinate Voting and Class B Shares
is at the discretion of Decoma's Board of Directors. If the
proposed privatization transaction does not proceed, Decoma's Board
of Directors will consider the matter of a dividend on Decoma's
shares in respect of the fourth quarter of 2004 in the ordinary
course at its regularly scheduled Audit Committee and Board of
Directors meetings to be held in March 2005. Forward Looking
Information --------------------------- This press release contains
"forward looking statements" within the meaning of applicable
securities legislation. Readers are cautioned that such statements
are only predictions and involve important risks and uncertainties
that may cause actual results or anticipated events to be
materially different from those expressed or implied herein. In
this regard, readers are referred to the Company's Annual
Information Form for the year ended December 31, 2003, filed with
the Canadian securities commissions and as an annual report on Form
40-F with the United States Securities and Exchange Commission, and
the discussion of risks and uncertainties set out in the "Forward
Looking Statements" section of the Management's Discussion and
Analysis of Results of Operations and Financial Position set out
therein, and subsequent public filings. The Company disclaims any
intention and undertakes no obligation to update or revise any
forward looking statements to reflect subsequent information,
events or circumstances or otherwise. About the Company
----------------- Decoma designs, engineers and manufactures
automotive exterior components and systems which include fascias
(bumpers), front and rear end modules, liftgates and running
boards, plastic body panels, roof modules, exterior trim
components, sealing and greenhouse systems and lighting components
for cars and light trucks (including sport utility vehicles and
mini-vans). Decoma has approximately 16,000 employees in 54
manufacturing, engineering and product development facilities in
Canada, the United States, Mexico, Germany, Belgium, England,
France, Austria, Poland, the Czech Republic and Japan. For further
information about Decoma, please visit the Company's website at
http://www.decoma.com/. DECOMA INTERNATIONAL INC. 50 Casmir Court
Concord, Ontario Canada L4K 4J5 tel: 905-669-2888 fax: 905-669-5075
DATASOURCE: Decoma International Inc. CONTACT: For further
information about this press release, please contact S. Randall
Smallbone, Executive Vice-President, Finance and Chief Financial
Officer of Decoma at (905) 669-2888.
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