Veltri Metal Products, Inc. Reports First-Quarter Profit

TROY, Mich., May 22 -- Automotive parts supplier Veltri Metal Products, formerly Talon Automotive Group, on Thursday reported a net profit in the first quarter compared with a loss a year earlier, as the company successfully completed its restructuring activities in late 2001.

Troy, Michigan-based Veltri reported a net profit of $1.6 million, compared to a net loss of $6.4 million during the year-earlier period. Quarterly revenues increased from $63.1 million to $69.2 million or 9.5%.

The Company also announced earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of $6.4 million, compared to $800,000 during the year-earlier period.

Outstanding indebtedness, net of cash, at the end of the first quarter was $76 million, compared to $195 million during the year-earlier period.

Michael Veltri, President and CEO, said the earnings jump was "reflective of the company's very successful restructuring activities during 2001. In the first quarter of the year, the Company was able to add a new customer, which generated immediate annual sales awards of $12 million, with continuing opportunities being quoted to fill currently unused excess capacity. During 2001, we rationalized our manufacturing and administrative base and shut down four facilities and related infrastructure. These actions saved the company approximately $12 million per year. In addition, we completed a debt-for- equity exchange that significantly deleveraged the company and eliminated $120 million of debt and approximately $12 million of interest expense per year." Mr. Veltri stated, "The first quarter results demonstrate the significant turnaround of the company and we fully expect increased sales and continued operational efficiencies in 2002. We are also most excited about the continued progress in all our new product launches but, in particular, on the DaimlerChrysler Pacifica and Honda Pilot which are set to arrive in showrooms in the near future."