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MWW Automotive Group Reports Q3 FY 2011 Financial Results
MWW Automotive Group Reports Q3 FY 2011 Financial Results
Increase of 69% in Q3 2011 Sales over Q2 2011 Reduces Operating Loss By 61% For the Same Periods
Howell,
MI,
United States of America
(prbd.net)
17/08/2011
Howell, Michigan, August 17, 2011 - MWW Automotive Group (OTCBB: MWWC), a global design, engineering, and manufacturing firm serving some of the world's leading automotive and industrial manufacturers, announced today its financial results for the Third Quarter of fiscal 2011 ended June 30, 2011.
For the three months ending June 30, 2011, MWW reported net sales of $449,235, a decrease of $602,260 compared to $1,051,495 for the first quarter of fiscal 2010. This decrease was driven by the exceptional decline in industry sales during the period, caused mainly by the catastrophe in Japan resulting in no or only minimal available inventory of automobiles from Japanese manufacturers. This lack of inventory resulted in a temporary reduction in orders from the Company's major customers. The production and inventory problems had already reduced sales in the 2nd quarter 2011, but are expected to be overcome sometime during late August or September. Despite the continuing lack of inventory during the third quarter, the Company has increased sales by 69% to $449,235 in the third quarter of 2011, compared with $265,354 in the 2nd quarter of 2011.
Operating loss was reduced to 62% of revenue in the third quarter of 2011 compared with a 269% loss of revenue in the second quarter of 2011. This improvement was primarily attributable to the impact of the successful corporate-wide cost reduction exercises and streamlining of operations, although implementing significant expansions of the production lines at MWW's painting and assembly facility. The streamlining of these operations and the expectation of increasing production volume is expected to have a significant positive impact on revenues and profitability going forward. For further details please see the attached financial reports and our complete SEC filings at www.sec.gov, or through the SEC link on our website in the investor relations section.
Despite this temporary lack of inventory MWW has been able to increase its sales and reduce operating expenses as a percentage of revenue in the third quarter of 2011 compared to the second quarter 2011. MWW's new management team has made significant progress on the Company's path of recovery, with the main focus on streamlining and expanding the production facilities in its "Class A" painting facility in Baroda, Michigan, in anticipation of the imminent start of production for new automotive customers and several large industrial projects. MWW has expanded its customer base significantly by adding large global and domestic automotive manufacturers and has completed the negotiations for its entry into the industrial markets, details of which will be announced soon.
During the last two quarters, MWW has focused on stringent cost down exercises throughout the Company to compensate for the temporary decrease in revenue caused by the shortage of product deliveries from Japan. MWW's new management team has utilized this time to acquire new customers not only in the automotive industry, but also in the industrial sector, in order to reduce its vulnerability caused by dependence on one industry or customer (brand) concentration. As of now, the Company has commenced production on new contracts with automakers such as Hyundai, Nissan, Subaru, Chevrolet and Ford at its Class A painting facility. Productions with several new automobile manufacturers, Tier 1s and large industrial projects has either already begun or will commence soon.
Chuck Pinkerton, CEO of MWW states: "Despite a temporary downturn in sales in the entire automotive industry based on the lack of Japanese inventory, which began in the 2nd quarter of 2011, MWW has improved its sales and operational results during the third quarter of 2011 and the first phase of the strategic restructuring process, executed by our new management team has been concluded. MWW has improved scales of economy in production, while at the same time drastically increasing production capacity. Continuing to decrease operational expenses as a percentage of sales will positively impact revenue and profit in the quarters and years to come. As a result of these measures, the new automotive and industrial projects that we have secured and the associated anticipated sales growth, we expect our trend to profitability to continue strongly during 2012 and 2013. We feel confident that with the start of these new projects MWW will be able to achieve its projected goals and can strongly enhance shareholder value throughout 2011 and 2012."
About MWW Automotive Group
MWW Automotive Group is headquartered in Howell, Michigan, with a leading-edge technology 45,000 square foot "Class A" painting/assembly facility in Baroda, Michigan (Colortek), for the production and assembly of OE quality automotive and industrial products. MWW delivers its in-house designed accessory products and Class A painting and assembly services directly to major global automobile manufacturers'' Vehicle Processing Centers (VPCs) and Tier-1 Strategic Alliance Partners in the United States and Canada. MWW products are installed in a variety of vehicle types by the VPCs or Tier-1s at their facilities and then distributed into the dealer networks in North America. MWW's industrial and consumer products are delivered directly to the manufacturers for assembly in their facilities and distribution to their customers. Noted for its adherence to the highest quality requirements and its advanced logistics capabilities, MWW products consistently meet and exceed customers' expectations and requirements. MWW provides substantial added value to the sale of vehicles and industrial products for leading international automobile and industrial manufacturers such as Toyota, BMW, Hyundai, Kia Motors, GM, Ford, Deere, 21 Degrees and Whirlpool. For more information please e-mail investorrelations@mwwautomotive.com
Safe Harbor Statement: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings.”
Suzanne Holbrook
Contact:
Rainer Poertner
Business Development
MWW Automotive Corp.
2212 Grand Commerce Drive
Howell, MI 48855
Tel: 310-306-1266
Tel: 1-517-540-0045, x43
Fax: 1-310-822-1633
rpoertner@mwwautomotive.com
twitter.com/rainerpoertner
http://www.mwwautomotive.com
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