Metaldyne Performance Group Inc. (MPG), parent company of Powder Metallurgy parts maker Metaldyne LLC, has announced first quarter 2015 net sales of $765.2 million, compared to $540.5 million in Q1 of 2014, representing a year-over-year increase of 42%.
MPG, formed from a merger of HHI Holdings, Grede Holdings and Metaldyne LLC in 2014, reported that gross profit of $128.5 million for the quarter was $45.3 million higher than in 2014, an increase of 54%, with net income at $32.6 million.
Commenting on the company’s results, George Thanopoulos, Chief Executive Officer of MPG, stated, “During the first quarter we actively managed our business to account for the recent metals market fluctuations and FX changes, resulting in strong Adjusted EBITDA, Adjusted EBITDA margins and Adjusted Free Cash Flow. Additionally, we took several actions to drive value creation, namely our continued reinvestment in the business, the declaration of our first dividend, the voluntary pre-payment of debt and, finally, seeking a debt refinancing to reduce cash debt service. These actions highlight MPG’s cash flow model and its ability to provide a balanced approach to value creation.”
For fiscal 2015 MPG re-affirmed the guidance provided earlier in the year. It estimates net sales of between $3.0 and $3.15 billion, adjusted EBITDA between $520 and $560 million and capital expenditures between $210 and $220 million.
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