Shiloh Industries: Liquidity adequate to manage business

By Jennifer Lanning Drey

Savannah, Ga., May 27 - Shiloh Industries, Inc. ended the second quarter with $46 million of liquidity at April 30, an amount the company believes is sufficient to support its working capital and capital investment requirements, Thomas Dugan, Shiloh's vice president of finance and treasurer, said Friday during its second-quarter earnings conference call.

Shiloh completed a new bank agreement in April that provided the company the necessary liquidity to manage the business, as well as lower interest rates and an extended maturity, he said.

The $80 million revolving credit facility now matures April 2016.

Shiloh had $32.5 million of debt at April 30, which Dugan said increased modestly during the period due to investments in facilities, planned inventory growth and other financial initiatives.

During the second quarter, Shiloh invested an additional $5.7 million in its new facility in Bowling Green, Ky., and other key projects, most of which relate to new product launches later in the year, he said.

The company generated $9.4 million of cash flow from operations, compared to $9.7 million of cash flow from operations in the second quarter of 2010, Dugan reported.

Shiloh's leverage ratio stood at 0.8 times at April 30.

The company reported second-quarter sales of $137.0 million, up 16% from sales of $117.8 million in the comparable prior-year period. Shiloh said the increase reflected year-over-year improvement of industry volume, new programs launched and conquest business awarded since the second quarter of 2010.

Operating income for the quarter was $5.8 million, compared to operating income of $5.7 million in the second quarter of 2010.

Second-quarter net income was $3.4 million, compared to net income of $3.1 million in the same period of 2010.

"We are pleased with results posted and the strong cash flows generated from operations. We will continue to focus on effective cost management, working capital management and organic sales growth," Dugan said.

Shiloh is a Valley City, Ohio-based manufacturer of first operation blanks, engineered welded blanks, complex stampings and modular assemblies for the automotive and heavy truck industries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.