[Gen-AI Analysis] Martinrea International Inc. Business Report FY ended 2013 - MarkLines Automotive Information & Gen-AI Platform

Martinrea International Inc. Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in million CAD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Overall
Net Sales	3,221.9	2,901.0	11.1	1)
Operating income	105.2	64.1	64.1	-
Regional Net Sales
North America	2,523.7	2,297.8	9.8	2)
Europe	631.2	547.3	15.3	3)
Rest of World	67.0	55.9	19.9	4)

Factors
1) Net Sales
-The Company's consolidated revenues for the year ended December 31, 2013 increased by 11.1% to CAD 3,221.9 million as compared to CAD 2,901.0 million for the year ended December 31, 2011. Revenues increased year-over-year across all operating segments.

2) North American Sales
-The Company's North America operating segment increased by 9.8% to CAD 2,523.7 million from CAD 2,297.8 million for the year ended December 31, 2012. The increase was generally due to overall improved OEM North American light vehicle production, the launch of new programs during or subsequent to 2012, including the Ford Escape and Fusion, GM full size pick-up trucks and Chevrolet Impala, and a CAD 41.4 million benefit from the impact of foreign exchange on the translation of U.S. dollar denominated production revenue.

3) European Sales
-Revenues for the year ended December 31, 2013 in the Company's Europe operating segment, comprised predominately of the European operations of Martinrea Honsel, increased by 15.3% to CAD 631.2 million from CAD 547.3 million for the year ended December 31, 2012. The increase was due to the launch of new incremental aluminum business with Jaguar Land Rover at the end of 2012, including a sub-frame and shock towers for the new Range Rover Sport, an overall year-over-year increase in European OEM light vehicle production, a CAD 27.7 million benefit from the impact of foreign exchange on the translation of Euro denominated production revenue and year-over-year increased production revenues in the Company’s plant in Slovakia, which continues to ramp-up and launch its backlog of business.

4) Rest of World Sales
-Revenues for the year ended December 31, 2013 in the Company's Rest of World operating segment increased by 19.9% to CAD 67.0 million from CAD 55.9 million for the year ended December 31, 2012. The increase can be attributed to the launch of the Company's first product in China for the Ford CD4 program, which began to ramp up at the end of the second quarter of 2013, and a year-over-year increase in tooling revenues of CAD 6.4 million.

R&D

R&D Expenditure

(in million CAD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Total	24.6	33.6	24.3

Investment Activities

Capital Expenditures

(in million CAD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	189.1	200.9	149.5

FY ended Dec. 31, 2013
-Capital expenditures for PP&E, including the year-over-year change in unpaid amounts at December 31, decreased by 5.9% to CAD 189.1 million for the year ended December 31, 2013 from CAD 200.9 million during the year ended December 31, 2012.

-Capital expenditures as a percentage of revenue decreased to 5.9% for the year ended December 31, 2013 from 6.9% for the year ended December 31, 2012.