Viasystems' Faces Challenging Third Quarter


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Viasystems-Logo.jpgViasystems Group, Inc., a leading provider of complex multilayer PCBs and electro-mechanical solutions, has announced results for the third quarter ended September 30, 2014.

Highlights:

  • Net sales were $299.3 million in the quarter ended September 30, 2014, a year-over-year decrease of (3.2)%, and a sequential decrease from the immediately preceding quarter of (0.6)%.
  • Operating loss in the quarter ended September 30, 2014, was ($1.1) million, or (0.4)% of net sales, after special charges of (i) approximately $5.0 million for costs incurred in connection with the previously-announced proposed merger with TTM Technologies, Inc. (TTM), and (ii) approximately $6.8 million for restructuring costs and fixed asset impairments in connection with a rationalization of the scope of operations in the company’s Juarez factory, of which $6.1 million was a non-cash impairment charge.
  • Adjusted EBITDA in the quarter ended September 30, 2014, was $35.9 million, or 12.0% of net sales, compared with $32.9 million, or 10.6% of net sales, in the quarter ended September 30, 2013, and compared with $35.2 million, or 11.7% of net sales, in the immediately preceding quarter.
  • U.S. GAAP loss per basic and diluted share was $(0.82) for the quarter ended September 30, 2014, on approximately 20 million average shares outstanding.
  • Adjusted EPS was a loss of $(0.06) for the quarter ended September 30, 2014, excluding certain non-cash and special income and expense items. Adjusted EPS for the quarter ended September 30, 2013, was a loss of $(0.19), and for the quarter ended June 30, 2014, was $0.00.

‟The biggest news during the third quarter was the announcement of our proposed merger into TTM,” noted David M. Sindelar, CEO. “Since the time of that announcement, we have coordinated with TTM regarding preparation of the various filings to obtain the governmental and other regulatory approvals required for the proposed merger. Beyond the work on such filings, both Viasystems and TTM have continued to operate as independent companies.”

“Regarding Viasystems’ operating activities in the third quarter,” continued Sindelar, “we had to overcome several challenges, including a temporary work stoppage by employees in our largest factory in China, a sudden downturn of demand for products assembled in our Juarez, Mexico factory, and a temporary disruption in the supply chain for certain raw materials used to produce our printed circuit boards. While I believe we have already taken all the actions needed to resolve these issues, each of these challenges had adverse impacts on our net sales and our earnings during the quarter. The adverse earnings impact from these operating challenges was essentially offset by a court-awarded judgment in our favor from one of the former suppliers of raw materials for our Assembly segment.”

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