TORONTO – Martinrea International Inc. (TSX:MRE) says net profits soared to a record $30.4 million in the first quarter amid strong sales by the auto parts maker in North America and Europe.
Toronto-based Martinrea says net profits attributable to equity holders of the company in the three months ended March 31 were $30.4 million or 36 cents per diluted share, up from $16.7 million or 20 cents in the same year-earlier period.
Consolidated sales increased by $53 million or 6.1% to $917.5 million from $864.5 million in the first quarter of 2014.
The overall increase in sales was driven by increases in North America and Europe operating segments, partially offset by a slight year-over-year decrease in sales in the Rest of the World segment.
Chief financial officer Fred Di Tosto said net earnings per share were above quarterly guidance as a result of stronger than expected performance in March and some foreign exchange gains in the quarter.
Executive chairman Rob Wildeboer said Martinrea expects to generate sales, excluding tooling sales, in the range of $920 to $960 million in the upcoming quarter, with net earnings per share in the range of 37 to 41 cents.
“Both would be record financial results,” he said.
Martinrea, produces metal parts, assemblies and modules as well as fluid management systems primarily for the auto industry. It employs more than 14,000 people in 44 operating divisions in Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain and China.