LDM Technologies Announces Third Quarter Earnings

AUBURN HILLS, Mich., Aug. 5, 2003 -- LDM Technologies, Inc. reports net sales for its third quarter ended June 29, 2003 (third quarter 2003) were $110.6 million, an increase of $3.4 million, or 3.2%, from the third quarter of FY 2002. The increase in net sales is the result of the launch of new product from the Company's manufacturing facility in Romulus, Michigan in August of 2002 offset by lower sales at other facilities due to reduced customer requirements.

Operating profit was $8.0 million, or 7.2% of net sales, for third quarter 2003, compared to operating profit of $7.0 million, or 6.5% of net sales, for the same period in 2002. The improvement was the result of cost cutting efforts undertaken in FY2002 and better absorption of fixed costs at the Company's Romulus, Michigan facility offset by weaker results at certain other facilities due to reduced customer requirements resulting in greater unabsorbed fixed costs at those facilities.

Interest expense was $3.6 million for the third quarter 2003 compared to $3.9 million for second quarter 2002. The decrease is due to scheduled debt repayments and a decrease in variable borrowing rates.

Net income for third quarter 2003 was $2.1 million compared to net income of $2.0 million for third quarter 2002. A noncash charge for revaluation of an interest rate swap derivative resulted in other nonoperating expense of approximately $1.3 million.

EBITDA for third quarter 2003 was $12.6 million compared to $12.4 million for third quarter 2001. EBITDA remained relatively unchanged due to factors discussed previously regarding operating profit.