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Shiloh Industries beats 1Q profit expectations as auto manufacturer wins nearly $300 million in new business

CEO hails 'significant progress' increasing profitability as the company continues to execute new product launches that will provide a recurring revenue stream
auto parts
The Ohio-based company supplies lightweighting, noise and vibration solutions to vehicle manufacturers

Shiloh Industries Inc (NASDAQ:SHLO) beat Street estimates on income for its fiscal first-quarter results released Monday, as the company won $300 million worth of new business in the first half of fiscal 2019.

The Ohio-based company is a global supplier of weight reduction, noise and vibration solutions to vehicle manufacturers.

CEO Ramzi Hermiz hailed the company’s “significant progress” increasing its profitability as it continues to execute new product launches that will provide a recurring revenue stream and strengthen its offering.

READ: Shiloh Industries posts profit for 2018 fiscal year as auto industry supplier looks to global growth

Hermiz said Shiloh had been awarded approximately $300 million in new business over the past few months and remain optimistic despite market uncertainties. “We expect our preemptive actions and restructuring initiatives will continue to mitigate market softness and contribute to our profitability,” he said in a statement.

“As we look toward the second half, we expect to deliver full year guidance and are raising the mid-point of our adjusted EBITDA range."

During the three-month period ending April 30, 2019, net income in 1Q was $1.1 million or $0.05 per share, on total revenue of $273.4 million. Analysts on average estimated a loss of around $0.03 per share on revenue of $286.8 million.

Over the same period a year prior, the company reported income of $4 million, or $0.17 per share, on revenue of $297.3 million.

Shiloh is maintaining its 2019 guidance for revenue to range from $1 billion to $1.2 billion.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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