Remy International, Inc. Business Report FY ended Dec. 2013

Business Highlights

Financial Overview 

(in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of change (%) Factors
Net Sales 1,118.6 1,133.5 (1.3) 1)
Operating Income 84.5 97.9 (13.7) -

1) Net Sales
-Net sales decreased by 1.3% to USD 1,118.6 million in 2013 from USD 1,133.5 million in 2012. The drop in net sales was due to a USD 14.3 million negative pricing impact along with a USD 5.2 million decrease in volume and mix. These two factors were slightly offset by a favorable foreign currency translation of USD 4.6 million.


-The Company announced that it signed a definitive share purchase agreement with its Chinese joint venture partner, Hubei Super Electric Auto Motor Co. Ltd. (HSE), to acquire the remaining 49% of the Remy Hubei Electric Co. Ltd. (REH) joint venture. The REH acquisition, in combination with the Company's investment in Wuhan (Hubei Province), more than doubles its existing alternator capacity and significantly expands its starter business. In 2004, the Company acquired a 51% ownership of REH as part of its purchase of Delphi's light duty alternator business.  (From a press release on June 10, 2013)


-The Company was awarded a contract to supply their 40SI high output alternator as standard equipment on all fire trucks produced by Pierce Manufacturing Inc. The 40SI alternator provides the highest combination of efficiency and power density in its class, resulting in better fuel economy. Pierce is the leading North American manufacturer of fire and specialty trucks. (From a press release on July 16, 2013)


-The Company received the 2012 Masters of Quality Award from Daimler Trucks North America LLC (DTNA). It is the seventh occasion and fifth consecutive year that the Company has received this honor. The Company's manufacturing facility in San Luis Potosi, Mexico, supplies Delco Remy heavy-duty alternators and starters to DTNA. (From a press release on June 12, 2013)


R&D Expenditures

(in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Total 15.5 26.0 26.5

R&D Structure

-The decrease in spending for research and development programs in 2013 was due to the conclusion of the US Department of Energy grant in December 2012.

-The Company has over 300 engineers focused on design, application and manufacturing.

-The Company commissioned a new engineering center in China in 2013.

Investment Activities

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 21.8 24.5 21.2

Investment Outside USA

-In 2013, the Company completed construction and opened a new manufacturing plant in Wuhan, China to serve OEMs in the country.