Remy International, Inc. Announces 2nd Quarter 2009 Results

PENDLETON, Ind., Aug. 17, 2009 -- Remy International, Inc., a leading worldwide manufacturer, remanufacturer, and distributor of heavy duty systems, starters and alternators, locomotive products and hybrid technology, announced today its operating results for the second quarter ended June 30, 2009. Sales for the quarter were $234.0 million compared to $297.7 million a year earlier. Earnings before interest, taxes, depreciation, amortization, and restructuring charges (EBITDAR) for the quarter were $37.1 million compared to $27.0 million in the second quarter of 2008. Gross profit less SG&A was $28.9 million in the second quarter of 2009 compared to $21.5 million in the second quarter of 2008. Net income attributable to Remy International in the quarter was $9.3 million, compared to 2008's second quarter's net income of $2.9 million.

"Our second quarter EBITDAR, including a one-time product sale in our aftermarket business, is in line with our expectations for the second quarter and our expectations for full year 2009 results," stated John Weber, Remy International President and Chief Executive Officer. "These results were achieved in spite of the continued sales decline in the light duty segment, and continued softness in the heavy duty segment. These declines were partially offset by robust sales by Remy Power Products as consumers replace starters and alternators on their aging vehicles. We are starting to see faint signs of a recovery in the light duty and heavy duty segments and we expect sales with GM in particular to improve as they come off their lengthy summer shutdown.

"We continue to meet this declining revenue challenge with aggressive cost controls and savings from our Global Savings Program initiatives. In addition to a 20% headcount reduction in 2008, we have taken further reductions in staffing, initiated pay reductions and introduced shortened work weeks across all Remy's businesses. For example, in the US, all employees in Remy Inc. and corporate staff are working with a 10% pay reduction through the end of 2009.

"Remy is and expects to be in full compliance with all loan covenants. Availability is sufficient to meet our needs and was aided by the $6 million one-time cash payment from the sale of our Poland facility.

"The Remy team has taken the necessary action to meet declining sales in the first half of 2009 and is well positioned to take advantage when sales improve.

"We are excited to announce that Remy was among the grant winners of the U.S. government's $2.4 billion grant program for the manufacture of the next generation of U.S. batteries and electric vehicles. Remy will receive $60.2 million of matching funds to establish a standardized platform of hybrid electric motors and controls. This grant reconfirms Remy's technology in hybrid electric motors and will accelerate our leadership position in the marketplace," added Weber.

This press announcement may contain forecasts, projections, expectations, or opportunities regarding Remy that are "forward-looking statements" as defined in the Private Securities Litigation Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results, including, but not limited to, future financial results and liquidity, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions, in addition to other factors identified in Remy International statements.

A copy of the 2009 Second Quarter's Financial Report is available on the Remy International Website at http://www.remyinc.com/ under Investor Relations.