Wescast Reports Second Quarter Sales And Earnings
BRANTFORD, Ontario--July 17, 2003--Wescast Industries Inc. today reported a 4% increase in revenue for the second quarter of 2003, boosted by sales from its new business operations. "Our core operations have continued to perform well despite a very challenging market," said Ray Finnie, President and C.E.O. "Our earnings have been negatively impacted by the ramp-up costs associated with our new facilities in Hungary and Georgia. However, these facilities, both of which have shown improved performance this quarter, are creating a foundation within new markets that will support our future growth plans."Highlights
| -- | Wescast revenues were up 4% over the level reported in the same quarter last year. The increase resulted from the addition of chassis component sales and sales from Weslin, our joint venture operation in Hungary. |
| -- | Net earnings for the quarter were $10.6 million versus $12.1 million in 2002. The costs associated with the continued ramp-up of the operations in Georgia and Hungary represented a negative impact on 2003 net earnings of $5.9 million, an improvement over the $6.6 million loss generated by these operations in the first quarter of 2003. On a comparable basis, net earnings in the second quarter of 2002 were $20.8 million prior to a reduction of $8.6 million, representing the cumulative impact of amending the Company's stock option program to include the addition of tandem stock appreciation rights. |
| -- | North American light vehicle production levels declined by almost 9% in the second quarter compared with the same quarter in 2002. Production levels by the Big 3 declined by 11% over the same period, as the automakers worked to reduce inventory levels. |
| -- | North American light vehicle sales levels for the Big 3 during the second quarter fell by only 2.4%, compared with the same period last year, as the automakers continued to offer extensive incentive programs on new vehicle transactions. |
| -- | Earnings per share on a diluted basis for the second quarter were $0.82, compared with $0.93 reported over the same period in 2002. |
Operations
Total sales for the quarter of $116.9 million were up 4% over the previous year's level of $112.1 million; of the increase $9.8 million came from the manufacture and sale of chassis components from the facility in Georgia. The Company had no sales of chassis components in the second quarter of 2002. In addition, the Company reported $5.1 million as its proportionate share of sales from Weslin. Sales of powertrain products in North America, comprised of cast and machined iron manifolds, decreased by 9% for the quarter from $107.5 million in 2002 to $97.7 million in 2003, as unit volume declined by 15% from 4.2 million units in 2002 to 3.6 million units in 2003. These volume decreases resulted from several factors; the overall decline in North American production levels, the impact of the partial transfer of production requirements for the Ford 4.0L program to Weslin, and declines in specific programs with DaimlerChrysler. These decreases were partially offset by favourable product mix and increased machining penetration. Machining penetration increased from 61% in the second quarter of 2002 to 76% in the same quarter this year. Revenue from prototype and tooling sales for the quarter of $4.3 million was consistent with the $4.6 million reported in the second quarter of 2002.
Gross profit, after depreciation, for the quarter was $28.9 million a decline of 28% over the $40.2 million reported in the same quarter of 2002. The decline reflects the impact on earnings to support the ramp-up of operations in Georgia and Hungary.
The profitability of the Company's North American powertrain group remained strong in spite of lower volumes. These operations generated $34.1 million in the second quarter or 35% of sales, this compares with the $39.4 million or 36.7% generated over the same period last year on significantly higher volumes. The negative pressure on margins from higher depreciation costs, rising raw material prices and increased operating costs were partially offset by strong operating performance and the impact of cost reduction activities in the manufacturing facilities. In addition, there was a positive impact of $1.1 million representing government investment tax credits applied to offset expenditures on research and development activities conducted in the facilities in prior periods.
The operation in Hungary generated a loss for the quarter of $1.4 million at the gross profit level, a slight improvement over the $1.7 million generated in the first quarter of this year. In 2002, the bulk of the operating results for this operation were deferred as pre-production costs. The reported loss for the quarter included approximately $0.5 million in amortization associated with the deferred pre-production costs. The chassis component operation in Georgia generated a loss of $4.9 million, at the gross profit level, compared with a loss of $5.4 million in the first quarter of this year. These operations are both in ramp-up mode and are still striving to improve the operating metrics necessary to reach breakeven. The overall negative impact on pre-tax earnings from these operations, including selling, administrative and interest costs, was $7.7 million, with $2.3 million coming from Hungary and the remaining $5.4 million from Georgia. These operations are both being supported with leadership, technical and administrative resources from the Company's core operations in an effort to improve performance and accelerate the learning curve associated with the ramp-up of a foundry operation.
The Company's selling, general and administrative expenses totaled $9.0 million, in line with the $8.7 million incurred over the same period in 2002. The Company's fixed cost base has increased over 2002 levels in support of the Company's growth and diversification initiatives, specifically the addition of the sales force to support the chassis group and the costs associated with the corporate office and technical development centre. The minor increase this quarter over 2002 levels, given the increase in the fixed cost base, reflects the results of the cost reduction efforts aimed at the variable costs within these administrative departments.
The Company's research and development expenses of $1.9 million this quarter were unchanged from the same quarter last year.
Other income and expenses for the second quarter of 2003 represented an expense of $1.7 million, compared with income of $0.6 million for the second quarter of 2002. The increase was primarily as a result of the reduction in interest income on cash and short-term investments, and additional interest expense, resulting from the debt assumed on the acquisition of the facility in Georgia.
The effective tax rate reflected for the quarter was 33.1 %, compared with a rate of 24.9% in 2002. While the Company's tax rate applicable to income generated in Canada has declined from prior years as a result of lower statutory tax rates, the losses generated by its Hungarian joint venture do not provide any tax shield due to the lower tax rates and tax holiday in Hungary applicable to those amounts.
Cash Flow
The Company generated $5.3 million in cash from operations during the second quarter, compared with $22.4 million cash generated from operation during the second quarter of 2002. The decrease was attributable to lower operating earnings during the period, as it funded the operations ramping up in Hungary and Georgia, as well as increases in working capital. The growth in working capital can be attributed to a reduction in accounts payable. A large portion of this reduction represented the settlement of accounts payable balances related to the purchase of new machine lines in previous quarters.
Capital expenditures for the second quarter were $10.8 million, which were $17.2 million lower than the $28.0 million incurred over the same quarter last year. The capital expenditure level in 2002 included the construction costs associated with the Company's technical development centre and corporate office complex, the purchase of a new aircraft, and the expansion of machining capacity.
Balance Sheet and Financial Position
At June 29, 2003 the Company had $7.2 million in bank indebtedness compared with $21.9 million in cash, short-term investments and long-term bond investments at the end of 2002. The change reflects the funding of capital expenditures over the period. The Company continues to maintain a strong financial position and is well positioned to support future growth initiatives.
Future Outlook
There remains a level of uncertainty surrounding the short-term economic outlook for the automotive industry. The production levels in the second quarter fell far more significantly over the period than did sales volumes as the automakers worked to reduce vehicle inventory levels that had risen considerably during the first quarter. North American light vehicle production estimates for 2003 are still projected in the range of 15.8 million to 16.0 million vehicles, a slight reduction from 2002 levels. In recent months industry analysts have expressed concern regarding the heavy incentives being offered to consumers by the automakers on the purchase or lease of new vehicles. Specifically, whether these incentives are losing their effectiveness, as consumers no longer view these incentives as unusual or as short-term opportunities. The manner in which the labour negotiations between the Big 3 and the UAW proceed this fall may also impact vehicle sales and production levels. These issues create some concern over whether the upper range of these productions targets will be achieved.
The Company's immediate areas of operational focus remain unchanged -
-- The focus of the core powertrain operations in North America
is targeted on cost reduction initiatives based upon
continuous improvement and achieving operational excellence.
In addition, we look to further advance our machining
penetration, increasing the percentage of manifolds supplied
that are both cast and machined. The goal is to improve the
efficiency level of these operations enabling margins to be
maintained in the face of inflationary cost increases. We will
continue to work with the existing customer base to meet their
cost reduction targets and to demonstrate that we remain
competitive when compared with offshore competitors located in
low cost countries. In addition, we will continue to pursue
opportunities with the new domestic customers to supply their
requirements in North America.
-- We continue to focus on improving the production process in
the Georgia facility, however our primary focus has been to
ensure we meet the production, launch and quality requirements
of our customers. Building confidence with our customer base
will help ensure the long-term success of the facility. The
facility is showing improved operational performance, these
improvements will drive improved financial performance. The
operation continues to receive support from the Company's core
operations targeted at accelerating the improvement of
operating performance, assisting in the product launch of new
programs and installing the business systems to support the
business in the future. This support, combined with various
capital expenditure initiatives currently underway aimed at
improving product throughput and production efficiency, will
lead to a gradual improvement in the operational and financial
performance of this operation. A 90-day improvement program
developed at the end of the last quarter has been implemented
and is beginning to yield improved operating performance.
-- The operation in Hungary is in a similar situation. Customer
acceptance has been strong. However, as highlighted in
previous press releases, product launches scheduled for 2002
that were delayed for reasons beyond the control of the
operation have slowed the development of the facility, and
resulted in a high number of program launches to be
concentrated in 2003. The operation remains focused on the
execution of a detailed 100-day improvement plan that was
developed last quarter. Where required the operation is being
supported with technical resources from the Company's core
operations in North America. The production requirement of the
4.0L program for Ford continues to be supported by the
foundries in Canada to allow the appropriate level of
operational focus to be targeted on upcoming product launches.
We believe enabling the operation to focus its resources on
achieving successful new product launches is the most
effective method of helping improve its operational and
financial performance.
The uncertainty surrounding the current market at this time has not impacted our longer-term strategic focus; it remains substantially unchanged:
-- We will strive to remain cost competitive in our core
operations by maintaining our focus on continuous improvement,
as outlined above.
-- We will improve the operating performance of the facilities in
Hungary and Georgia to position them for future growth and
profitability, as outlined above.
-- We will maintain our commitment to fund research and
development activities, as we work to develop our "hot end
solutions" strategy, continue development on high temperature
alloys and explore new product opportunities that can
efficiently utilize existing capacity.
-- We will evaluate both the threat and opportunities that may
exist in the emerging markets in Asia.
We believe maintaining this focus is our best means of ensuring the long-term success of the Company.
The following table provides additional supplementary data for the
second quarter:
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in millions of dollars, except
where otherwise noted Q2 Q2 % YTD YTD %
2003 2002 change 03 02 change
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Sales
Powertrain North America 97.7 107.5 197.1 209.0
Powertrain Europe 5.1 0.0 10.1 0.0
Chassis North America 9.8 0.0 20.8 0.0
Prototypes & Tooling 4.3 4.6 14.0 8.0
Total 116.9 112.1 4% 242.0 217.0 12%
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Gross Margin (Before
Depreciation)
Powertrain North America 40.7 45.2 79.0 86.7
% of Sales 41.7% 42.0% 40.1% 41.5%
Powertrain Europe -0.3 0.0 -0.8 0.0
% of Sales -6.2% N/A -8.4% N/A
Chassis North America -3.6 0.0 -7.3 0.0
% of Sales -36.4% N/A -35.3% N/A
Prototypes & Tooling 1.1 1.1 2.1 2.2
% of Sales 25.5% 23.6% 15.1% 27.0%
Total 37.9 46.3 -18% 73.0 88.9 -18%
% of Sales 32.4% 41.3% 30.2% 40.9%
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Gross Profit (After
Depreciation)
Powertrain North America 34.1 39.4 66.9 75.1
% of Sales 35.0% 36.7% 33.9% 35.9%
Powertrain Europe -1.4 -0.3 -3.1 -0.6
% of Sales -28.0% N/A -30.6% N/A
Chassis North America -4.9 0.0 -10.2 0.0
% of Sales -49.8% N/A -49.3% N/A
Prototypes & Tooling 1.1 1.1 2.1 2.2
% of Sales 25.5% 23.6% 15.1% 27.0%
Total 28.9 40.2 -28% 55.7 76.7 -27%
% of Sales 24.7% 35.8% 23.0% 35.3%
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Additional Information
Depreciation and
Amortization
Included in Cost of Sales 9.0 6.1 17.3 12.2
Included in S,G & A 1.6 0.7 3.3 1.3
Capital Expenditures 10.8 28.0 25.0 38.6
R&D and Design 1.9 1.9 4.1 3.7
% of Sales 1.6% 1.7% 1.7% 1.7%
SG & A 9.0 8.7 17.9 16.2
% of Sales 7.7% 7.8% 7.4% 7.5%
Tax Rate 33.1% 24.9% 34.5% 30.6%
Internal Machining
Penetration - N.A.
Manifolds 76.1% 60.9% 76.0% 60.4%
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About Wescast
Wescast Industries Inc. is the world's largest supplier of exhaust manifolds for passenger cars and light trucks. The Company designs, develops, casts and machines high-quality iron exhaust manifolds for automotive OEMs. Wescast recently entered the suspension and brake component market through the acquisition of Georgia Ductile. It has sales and design centres in Canada, the United States, Germany and the United Kingdom, and sales representation in France and Japan. The Company operates seven production facilities in North America, including a 49% interest in United Machining Inc., an accredited Minority supplier in Michigan. It also has a 50% joint venture interest in Weslin Autoipari Rt., a Hungarian based supplier of cast iron exhaust manifolds and turbo charger housings for the European light vehicle market. The Company is recognized worldwide for its quality products, innovative design solutions and highly committed workforce.
Learn more at www.wescast.com.
Forward Looking Statements
Wescast and its representatives may periodically make written or oral statements that are "forward-looking", including statements included in this news release and in our filings with applicable Securities Commissions and in reports to our stockholders. These statements may be identified by words such as "believe," "anticipate," "project," "expect," "intend" or other similar expressions, and include all statements which address operating performance, events or developments that we expect or anticipate may occur in the future (including statements relating to future sales or earnings expectations, volume growth, awarded sales contracts and earnings per share expectations or statements expressing general optimism about future operating results). Such statements involve risks and uncertainties that may cause unanticipated events and actually evolve to be materially different from those either expressed or implied. These factors include, but are not limited to, risks associated with the automotive industry, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated in the forward-looking statements. For more detailed information regarding these risks you may refer to Wescast's publicly filed documents with applicable Canadian securities authorities and the U.S. Securities and Exchange Commission. Wescast undertakes no obligation to update any of these forward-looking statements.
A conference call has been arranged for:
July 17, 2003
3:00 p.m. EST
To participate, please dial (416) 641-6666
Post view is available from July 17 to July 24, 2002. To access please dial 416-626-4100 and enter passcode 21146930
Wescast Industries Inc.
Consolidated Statement of Earnings and Retained Earnings
(in thousands of Canadian dollars, except per share amounts)
(Unaudited Canadian GAAP)
Three months ended Six months ended
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June 29, June 30, June 29, June 30,
2003 2002 2003 2002
-------------------------------------------------------------------
Sales $116,851 $112,140 $242,010 $217,040
Cost of sales 87,941 71,941 186,351 140,364
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Gross profit 28,910 40,199 55,659 76,676
Selling, general
and administration 8,999 8,736 17,911 16,238
Stock-based
compensation 471 12,789 -661 12,789
Research, development
and design 1,870 1,938 4,129 3,733
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17,570 16,736 34,280 43,916
Other (income)
expense
Interest expense 433 67 748 124
Investment income -41 -463 -102 -1,233
Other (income) and
expenses (Note 7) 1,326 968 1,143 908
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Earnings before
income taxes 15,852 16,164 32,491 44,117
Income taxes 5,253 4,021 11,197 13,481
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Net earnings $10,599 $12,143 $21,294 $30,636
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Net earnings per
share (Note 8)
- basic $0.82 $0.93 $1.63 $2.35
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- diluted $0.82 $0.93 $1.58 $2.35
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Retained earnings,
beginning of
period $335,810 $289,848 $326,686 $272,922
Net earnings 10,599 12,143 21,294 30,636
Dividends paid -1,571 -1,569 -3,142 -3,136
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Retained earnings,
end of period $344,838 $300,422 $344,838 $300,422
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Wescast Industries Inc.
Consolidated Balance Sheet
(in thousands of Canadian dollars) (Unaudited Canadian GAAP)
As at
-------------------------------------------------------------------
June 29, December 29,
2003 2002
-------------------------------------------------------------------
Current assets
Cash and cash equivalents $0 $9,984
Short-term investments 0 11,909
Receivables 79,880 73,095
Income taxes receivable 2,484 5,578
Inventories 42,395 38,412
Prepaids 2,631 2,526
Current assets - discontinued
operations 222 265
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127,612 141,769
Property and equipment (Note 4) 377,112 382,718
Goodwill 41,485 41,485
Other (Note 5) 12,421 15,708
Long-term assets - discontinued
operations 5,443 5,237
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$564,073 $586,917
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Current liabilities
Bank indebtedness $7,235 $0
Payables and accruals 47,130 75,873
Current portion of long-term
debt 4,105 6,190
Current portion of stock
appreciation rights 2,469 3,213
-------------------------------------------------------------------
60,939 85,276
Long-term debt 38,016 46,576
Long-term stock appreciation
rights 58 105
Future income taxes 6,415 9,164
Employee benefits 10,734 9,533
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116,162 150,654
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Shareholders' equity
Capital stock (Note 6) 109,846 109,596
Retained earnings 344,838 326,686
Share purchase loans -1,346 0
Cumulative translation
adjustment -5,427 -19
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447,911 436,263
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$564,073 $586,917
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Wescast Industries Inc.
Consolidated Statement of Cash Flows
(in thousands of Canadian dollars) (Unaudited Canadian GAAP)
Three months ended Six months ended
-------------------------------------------------------------------
June 29, June 30, June 29, June 30,
2003 2002 2003 2002
-------------------------------------------------------------------
Cash derived from
(applied to)
Operating
Earnings from
continuing
operations $10,599 $12,143 $21,294 $30,636
Add (deduct) items
not requiring cash:
Depreciation and
amortization 10,598 6,787 20,608 13,491
Amortization of
bond costs 70 262 127 439
Future income
taxes -1,263 -3,565 -2,812 -2,919
Gain on disposal of
investments 0 0 -13 -180
Loss (gain) on
disposal of
equipment -136 6 -136 47
Stock-based
compensation expense 341 11,705 -791 11,705
Employee benefits 796 613 1,561 1,226
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21,005 27,951 39,838 54,445
Change in non-cash
operating working
capital (Note 9) -15,575 -5,259 -38,723 -11,047
-------------------------------------------------------------------
5,430 22,692 1,115 43,398
Discontinued operations -140 -332 -249 -922
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5,290 22,360 866 42,476
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Financing
Issue of long-term
debt 455 543 1,078 707
Repayment of
long-term debt -4,305 -681 -4,305 -1,806
Payment of
obligations under
capital leases -233 -203 -666 -393
Employee benefits paid -158 -289 -360 -471
Issuance of share
capital under
Employee Share
Purchase Plan 119 161 250 309
Employee share loan
repayments 101 37 263 80
Issuance of share
capital under Stock
Option Plan 0 639 0 2,121
Dividends paid -1,571 -1,569 -3,142 -3,136
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-5,592 -1,362 -6,882 -2,589
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Investing
Purchase of
property, equipment
and other assets -10,788 -27,978 -24,967 -38,565
Purchase of
investments 0 0 0 -48,236
Deferred
pre-production costs 0 -1,043 0 -2,444
Redemption of
investments 0 0 11,905 25,602
Proceeds on disposal
of equipment 1,576 65 1,859 105
Discontinued
operations 0 8 0 -353
-------------------------------------------------------------------
-9,212 -28,948 -11,203 -63,891
-------------------------------------------------------------------
Net decrease in cash
and cash equivalents -9,514 -7,950 -17,219 -24,004
Cash and cash
equivalents, net of
bank indebtedness
Beginning of period 2,279 42,525 9,984 58,579
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End of period -$7,235 $34,575 -$7,235 $34,575
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Wescast Industries Inc.
Notes to the Consolidated Financial Statements
(in thousands of Canadian dollars, except per share amounts)
(Unaudited Canadian GAAP)
Note 1. Basis of presentation
The disclosures in these interim financial statements do not
conform in all respects to the requirements of generally accepted
accounting principles for annual financial statements. These interim
financial statements should be read in conjunction with the most
recent annual financial statements for the year ended December 29,
2002.
Note 2. Accounting policies
These interim financial statements follow the same accounting
policies and methods of their application as the most recent annual
financial statements for the year ended December 29, 2002 except for:
The Company changed its accounting treatment with respect to
director and employee share purchase plan loans to that issued by the
Canadian Institute of Chartered Accountants in December 2002. The main
effect of the change to the Company's financial statements is that in
2003 the share purchase loans are reported as a deduction from
shareholders' equity as compared to other assets as reported in prior
years. The comparative figures of 2002 have not been restated.
Note 3. Interest in jointly controlled entities
The following is the company's proportionate share of the major
components of its jointly controlled entities (before eliminations):
June 29, December 29,
2003 2002
-------------------------------------------------------------------
Balance Sheet
Current assets $11,068 $13,599
Long-term assets 57,713 58,437
Current liabilities 8,333 9,061
Long-term liabilities 2,645 3,074
Equity 57,803 59,901
Three months ended Six months ended
June 29, June 30, June 29, June 30,
2003 2002 2003 2002
-------------------------------------------------------------------
Statement of earnings
Sales 8,328 4,947 18,950 8,865
Cost of sales and
expenses 10,211 5,292 22,888 9,521
Net loss -1,883 -345 -3,938 -656
Three months ended Six months ended
June 29, June 30, June 29, June 30,
2003 2002 2003 2002
-------------------------------------------------------------------
Statement of cash flows
Cash derived from
(applied to)
Cash flows from
operating activities 1,623 -563 1,049 -566
Cash flows from
financing activities -1,688 2,064 -790 5,251
Cash flows from
investing activities -$831 -$1,721 -$2,391 -$4,650
Note 4. Property and Equipment
June 29, December 29,
2003 2002
-------------------------------------------------------------------
Cost
Land $5,157 $5,529
Buildings and improvements 159,830 144,193
Machinery, equipment and vehicles 384,924 394,383
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549,911 544,105
-------------------------------------------------------------------
Accumulated Depreciation
Buildings and improvements 22,359 19,468
Machinery, equipment and vehicles 150,440 141,919
-------------------------------------------------------------------
172,799 161,387
-------------------------------------------------------------------
Net Book Value
Land 5,157 5,529
Buildings and improvements 137,471 124,725
Machinery, equipment and vehicles 234,484 252,464
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$377,112 $382,718
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Note 5. Other
June 29, December 29,
2003 2002
-------------------------------------------------------------------
Deferred pre-production costs $11,732 $13,436
Director and employee share
purchase plan loans 0 1,448
Bond issue costs 640 771
Licence 49 53
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$12,421 $15,708
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Note 6. Capital Stock
Authorized
Unlimited Preference shares, no par value
Unlimited Class A subordinate voting common shares, no par value
9,000,000 Class B multiple voting common shares, no par value
June 29, December 29,
2003 2002
-------------------------------------------------------------------
Issued and outstanding
5,715,190 Class A Common shares $97,419 $97,169
(2002 - 5,707,111)
7,376,607 Class B Common shares 12,427 12,427
(2002 - 7,376,607)
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$109,846 $109,596
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Note 7. Other (income) and expenses
Three months ended Six months ended
June 29, June 30, June 29, June 30,
2003 2002 2003 2002
-------------------------------------------------------------------
Foreign exchange
translation loss $1,410 $1,107 $1,236 $1,033
Gain on disposal of
equipment and other -84 -139 -93 -125
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$1,326 $968 $1,143 $908
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-------------------------------------------------------------------
Note 8. Earnings per common share
Basic net earnings per share for the three months ended June 29,
2003 are based on the weighted average common shares outstanding (2003
- 13,035,445 shares; 2002 - 13,075,004 shares). Diluted net earnings
per share for the three months ended June 29, 2003 are based on the
diluted weighted average common shares outstanding (2003 - 13,158,225
shares; 2002 - 13,075,004 shares).
Note 9. Consolidated statement of cash flows
The following is additional information to the statement of cash
flows.
Change in non-cash working capital
Three months ended Six months ended
-------------------------------------------------------------------
June 29, June 30, June 29, June 30,
2003 2002 2003 2002
-------------------------------------------------------------------
Receivables $3,960 -$6,042 -$6,946 -$14,308
Inventories -722 -1,550 -3,983 -2,019
Prepaids -638 115 -105 152
Payables and accruals -20,262 6,188 -30,783 10,073
Income taxes receivable 2,087 -3,970 3,094 -4,945
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-$15,575 -$5,259 -$38,723 -$11,047
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Note 10. Segment Information
The Company currently operates within two reportable segments,
both in the automotive industry. The powertrain segment has operations
in North America and Europe, while the chassis segment maintains
operations in North America only.
There were no intersegment sales during the three months ended
June 29, 2003. All Corporate costs have been allocated to the
powertrain segment.
Three months ended June 29, 2003
Powertrain Chassis
-------------------------------------------------------------------
North North
America Europe America Total
-------------------------------------------------------------------
Sales to external
customers $99,609 $5,070 $12,172 $116,851
Net earnings (loss) 16,413 -2,257 -3,557 10,599
Interest revenue 41 0 0 41
Interest expense 187 0 246 433
Depreciation and
amortization 8,115 1,160 1,323 10,598
Income taxes 7,064 23 -1,834 5,253
Purchase of
property, equipment
and other assets
$8,087 $828 $1,873 $10,788
Three months ended June 30, 2002
Powertrain Chassis
-------------------------------------------------------------------
North North
America Europe America Total
-------------------------------------------------------------------
Sales to external
customers $112,140 $0 $0 $112,140
Net earnings (loss) 12,624 -481 0 12,143
Interest revenue 463 0 0 463
Interest expense 67 0 0 67
Depreciation and
amortization 6,411 376 0 6,787
Income taxes 4,012 9 0 4,021
Purchase of property,
equipment and
other assets
$26,699 $1,279 $0 $27,978
Six months ended June 29, 2003
Powertrain Chassis
-------------------------------------------------------------------
North North
America Europe America Total
-------------------------------------------------------------------
Sales to external
customers $208,572 $10,060 $23,378 $242,010
Net earnings (loss) 33,600 -4,584 -7,722 21,294
Interest revenue 102 0 0 102
Interest expense 278 0 470 748
Depreciation and
amortization 15,330 2,348 2,390 20,608
Income taxes 15,143 33 -3,979 11,197
Purchase of property,
equipment and other
assets $20,757 $2,337 $1,873 $24,967
Six months ended June 30, 2002
Powertrain Chassis
-------------------------------------------------------------------
North North
America Europe America Total
-------------------------------------------------------------------
Sales to external
customers $217,040 $0 $0 $217,040
Net earnings (loss) 31,580 -944 0 30,636
Interest revenue 1,233 0 0 1,233
Interest expense 124 0 0 124
Depreciation and
amortization 12,755 736 0 13,491
Income taxes 13,458 23 0 13,481
Purchase of property,
equipment and other
assets $36,235 $2,330 $0 $38,565
June 29, 2003
Powertrain Chassis
-------------------------------------------------------------------
North North
America Europe America Total
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Total Assets $381,620 $63,631 $118,822 $564,073
Property and equipment 270,007 45,582 61,523 377,112
Deferred pre-production
costs 2,507 9,225 0 11,732
Goodwill $0 $0 $41,485 $41,485
December 29, 2002
Powertrain Chassis
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North North
America Europe America Total
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Total Assets $395,611 $65,321 $125,985 $586,917
Property and equipment 265,953 44,577 72,188 382,718
Deferred pre-production
costs 3,185 10,251 0 13,436
Goodwill $0 $0 $41,485 $41,485