New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Shiloh Industries Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 27, 2011 05:18PM

Shiloh Industries Inc. (SHLO) filed Quarterly Report for the period ended 2011-04-30. Shiloh Industries Inc. has a market cap of $187.7 million; its shares were traded at around $10.88 with a P/E ratio of 22.9 and P/S ratio of 0.4.



Highlight of Business Operations:

Additionally, the Company reviews specific large insurance claims to determine whether there is a need for additional accrual on a case-by-case basis. Changes in the claim lag periods and the specific occurrences could materially impact the required accrual balance period-to-period. The Company carries excess insurance coverage for group insurance and workers’ compensation claims exceeding a range of $160-170 and $100-500 per plan year, respectively, dependent upon the location where the claim is incurred. At April 30, 2011 and 2010, the amount accrued for group insurance and workers’ compensation claims was $2,201 and $2,080, respectively. The insurance reserves established accruals are a result of improved safety statistics, changes in employment levels, reduced number of open and active workers’ compensation cases, and group insurance plan design features. The Company does not self-insure for any other types of losses.

GROSS PROFIT. Gross profit for the second quarter of fiscal 2011 was $11,596 compared to gross profit of $11,055 in the second quarter of fiscal 2010, an increase of $541. Gross profit as a percentage of sales was 8.5% in the second quarter of fiscal 2011 and 9.4% in the second quarter of fiscal 2010. Gross profit in the second quarter of fiscal 2011 was favorably impacted by approximately $4,830 from the increased sales volume. Gross profit margin was unfavorably affected by a change in sales mix to increased sales with steel ownership and increasing material costs net of revenue realized from the sales of engineered scrap during the second quarter of fiscal 2011 compared to the second quarter of 2010 resulting in a net material increase of approximately $2,070. In addition, manufacturing expenses increased by approximately $2,220 in the second quarter of fiscal 2011 compared to the second quarter of fiscal 2010. Personnel and personnel related expenses, including the restoration of certain benefits, like the 401k Company match, were responsible for the growth in these expenses by approximately $2,100 as the Company’s workforce was increased in anticipation of improved production volumes, planning for future launches, and planning for further increases in North American vehicle production volumes. Expenses for repairs and maintenance and manufacturing supplies increased by approximately $1,370. These increases were offset by a reduction in depreciation and utilities of approximately $1,280.

Other income, net was $112 for the second quarter of fiscal 2011 compared to a net expense of $6 in the second quarter of fiscal 2010. Other income in fiscal 2011 consisted of $131 generated from the sale of stock received in the quarter in connection with the settlement of a customer bankruptcy and netted against an expense of $19 for currency transaction losses realized by the Company’s Mexican subsidiary. The $6 expense in fiscal 2010 is the result of currency transaction losses realized by the Company’s Mexican subsidiary.

GROSS PROFIT. Gross profit for the first six months of fiscal 2011 was $17,941 compared to $16,086 in the first six months of fiscal 2010, an increase of $1,855. Gross profit as a percentage of sales was 7.3% in the first six months of fiscal 2011 compared to 7.5% for the same period a year ago. For the first six months of fiscal 2011, gross profit increased by approximately $7,190 from the increased sales volume compared to the prior year first six-month period. Gross profit margin was unfavorably affected by a change in sales mix to increased sales with steel ownership and increasing material costs partially offset by an improvement in revenue realized from the sales of engineered scrap during the first half of 2011 compared to the first half of 2010 by approximately $1,480. In addition, manufacturing expenses increased by approximately $3,960 in the first six months of 2011 compared to the first six months of 2010. Personnel and personnel related expenses increased by approximately $4,250 as a result of an increase in the Company’s workforce related to the improved production volumes, planning for future launches, planning for further increases in North American vehicle production volumes, and the restoration of certain benefits. Repairs and maintenance and manufacturing supplies increased approximately $2,100. These increases were partially offset by a reduction in depreciation and utility costs of approximately $2,390.

OTHER. For the first six months of fiscal 2011, interest expense was $963, a decrease of $1,307 from interest expense of $2,270 in the first six months of fiscal 2010. The reduction in interest expense compared to the prior year six-month period is the result of a reduced level of average borrowed funds and the impact of the Fifth Amendment to the Credit Agreement, which lowered the weighted average interest rate during the first six months of fiscal 2011 compared to the prior year six-month period. Borrowed funds averaged $28,451 during the first six months of fiscal 2011 and the weighted average interest rate was 3.32%. For the first six months of fiscal 2010, borrowed funds averaged $46,920 while the weighted average interest rate was 6.95%.

Other income, net was $111 for the first six months of fiscal 2011 compared to other expense, net of $25 for the first six months of fiscal 2010. Other income in fiscal 2011 consisted of $131 generated from the sale of stock received in the second quarter in connection with the settlement of a customer bankruptcy and netted against an expense of $20 for currency transaction losses realized by the Company’s Mexican subsidiary. The $25 expense in fiscal 2010 is the result of currency transaction losses realized by the Company’s Mexican subsidiary.

Read the The complete Report



Stocks Discussed: SHLO,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial