Boston, MA 10/1/2013 (wallstreetpr) – Remy International Inc (NASDAQ:REMY) a well-established brand in the electrical component manufacturing, starters and alternators niches continues clocking milestone after milestone in local and international automotive and electrical motor markets.
In just over 6 months, this Pendleton (IN) based designer, manufacturer, marketer and distributor moved from OTC market listings to NASDAQ and since June this year, is being tracked on the Russell 3000 Index.
The company has 52wk range of $15.34 – $21.50 and a market cap of $647.84 million.
Q1 Fumble
However, the company has seen several changes at the helm as well. CEO John Weber had stepped down resulting in a large severance liability for the company. The results posted for Q1 were weak with sales falling as low as 4% Year-on-Year.
REMY was, however, quick to recover and post a turnaround, largely due to restructuring its operations as well as looking at more productive debt refinancing operations. Debt financing now stands at 4.25% compared to 6.2% in the previous quarter. This has resulted in saving of $6 M in annual interest payment. This also earned the company additional 5% on EPS and a restructured loan payment of $241M.
Q2 quick progress
In addition to the quick progress REMY has made in Q2 backed by strong business plan; the company is well on its way to clock high growth over the next two quarters of this fiscal. It has moved to strengthen its hold in the “Hubei joint venture”, in China by purchasing outstanding shares. It has also managed to commission its production facility in Wuhan. These two factors bode good as the Chinese market for REMY products is slated to grow by a impressive 13% growth annually.
Besides, REMY has also won many new business contracts with Chinese companies, placing the over-a-century old electric starter and alternator company on the path to significant profits and tremendous expansion as well as growth!
