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Boeing in Mexico!

MTI Global Reports Fiscal 2007 Q2 and Six Months Results

Consolidation of Aerospace Business to MTI de Baja, Mexico and Reviews Consolidation Options for North American Silicone Operations

MISSISSAUGA, ONTARIO--(Marketwire - Aug. 8, 2007) - MTI Global Inc. ('MTI')(TSX:MTI) today reported financial results for the three and six month periods ended June 30, 2007. MTI Global also announces the consolidation of all aerospace production in Mexico and the consolidation options of recently acquired Mold-Ex silicone division with MTI's current US production facilities.



Highlights:

- Successfully completed the transfer of the Boeing 787 program (Spirit
Aerosystems) to MTI de Baja, Mexico
- Consolidation of all Aerospace production to Mexico facility expected
to be completed by year end 2007
- Anticipates savings from labour and overhead of approximately $2.5
million annually
- MTI Global completes acquisition of Mold-Ex Silicone Division subsequent
to quarter and plans to consolidate with North America
Silicone operations
- Anticipated $1.5 million in EBITDA annual contribution resulting from
expected synergies
- Transit market beginning to rebound with MF1 Foam sales on the increase

 


President and Chief Executive Officer Bill Neill commented, "While the second quarter of fiscal 2007 was challenging from a results perspective with the continued negative effects of the strengthening Canadian dollar, MTI Global achieved a number of milestones during the quarter, particularly in streamlining and consolidating manufacturing operations. These achievements will play a considerable role in re-establishing the profitability of the company."

Aerospace Business in Mexico:

After successfully completing the transfer of the Boeing 787 program to MTI de Baja, Mexico, MTI has decided to more aerospace production from Canada to Mexico. The transfer of these operations is expected to be completed by year end 2007. The Mississauga, Ontario facility will maintain a centre of excellence with respect to the design of thermal and acoustic insulation, engineering drawing, and material science and testing. The facility will also retain some production capacity in order to fulfill 'aircraft on ground' (AOG) orders as well as last minute supply orders from Canadian customers.

The decision to move our aerospace production to Mexico is a necessary one," added Bill Neill. "Operations in Mexico are fully functional and we are pleased with the exceptional quality of product. The transfer of production to Mexico is expected to mitigate some of the foreign exchange issues we have had to deal with and generate significant savings including plant and labour costs. We expect savings to be approximately $2.5 million in 2008, and as our aerospace business grows, so should the savings."

North American Silicone Consolidation:

On July 13, 2007, MTI announced the purchase of the silicone division of Mold-Ex Inc., based in Pensacola, Florida. The Mold-Ex silicone division posted yearly revenues in 2006 of over US$8.6 million.

"Adding the silicone division of Mold-Ex to MTI's North American Silicone division was a very complementary and strategic acquisition which adds to our product offering and strengthens our business in many sectors including automotive and aerospace. Not only is this acquisition immediately accretive to earnings, but it is expected to contribute $1.5 million in EBITDA annually as a result of expected synergies," Neill added. The Company is in the process of finalizing a term loan from its bankers for US$3.0 million to cover the cost of the transaction.
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Published Thursday, August 9, 2007 8:11 AM by Laura Tierney

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