Shiloh Industries CEO: 2008 to be similar to last year
Shiloh Industries, Inc. (Nasdaq: SHLO) CEO Theodore Zampetis said the maker of steel blanks and metal parts for automakers expects that the second- and third-quarter results in its heavy-duty trucking segment will be similar to results in 2007. Zampetis said Shiloh projects its lawn and garden segment to be a bit stronger than a year earlier. The chief executive made the comments during a midday conference call.
“Our forecast for the year is carefully prudently advised. We are not looking for the pie in the sky, we are conservative,” Zampetis said. “We believe that at the end of the day, based on what we saw in the first quarter, it is fair to say that this situation will continue in the foreseeable future into 2008.”
In response to an analyst’s question, the CEO told him Shiloh is advising investors to maintain a close look into the variable cost structure and “not to anticipate anything until we see the orders flowing in.”
After Friday’s closing, the Wilmington, Del.-based company posted first-quarter earnings of $1.6 million, or $0.10 per share, up from $1.5 million, or $0.09 per share, in the year-ago period.
Revenue for the three months ended Jan. 31 declined 9% to $147.6 million, from $134.9 million a year earlier. The firm said in a press release that the weak automobile industry hurt Shiloh’s sales volume. Lower revenue was offset by cost-cutting measures, including shuttering a Cleveland plant and decreasing production volume.
“We maintained a high level of control over our manufacturing operations as it pertains to the flexible variable costs,” Zampetis said.
In 2008, the CEO said Shiloh plans to stick to its current business plan.
“Moving forward, we continue to maintain our focus on cash flow optimization, capital asset utilization and debt reduction while we pursue opportunities for profitable growth,” Zampetis said.
In midday trading, SHLO shares are up 0.18%, or $0.02, at $9.01. Over the last 52 weeks, shares have ranged from $7.62 to $14.93.
