Exco Technologies Limited - First Quarter ended December 31, 2007 and Quarterly Dividend Increased


    TORONTO, Jan. 30 /CNW/ - Exco Technologies Limited (TSX-XTC) today
announced results for its first quarter ended December 31, 2007. In addition,
the Company announced a 17% increase in its quarterly cash dividend to $0.0175
per share which will be paid March 31, 2008 to shareholders of record on
March 14, 2008. The dividend is an "eligible dividend" in accordance with the
Income Tax Act of Canada.

    <<
    -------------------------------------------------------------------------
                                                     3 Months ended
                                                       December 31
                                            ($000s, except per share amounts)

                                                            2007        2006
                                                            ----        ----
    Sales                                                $47,974     $46,451
    Net income from continuing operations                 $1,364      $1,771
    Net loss from discontinued operations                   ($49)      ($663)
    Net income                                            $1,315      $1,108
    Basic and diluted earnings per share from
     continuing operations                                 $0.03       $0.04
    Basic and diluted (loss) per share from
     discontinued operations                               $0.00      ($0.01)
    Basic and diluted earnings per share                   $0.03       $0.03
    Common shares outstanding                         41,258,000  41,445,000
    -------------------------------------------------------------------------
    >>

    The financial results for the first quarter ended December 31, 2006 have
been restated to reflect the classification of Exco's Techmire business as a
discontinued operation.
    Consolidated sales from continuing operations for the quarter ended
December 31, 2007 were $48.0 million compared to $46.5 million last year - an
increase of $1.5 million or 3%. The Canadian dollar was 16 cents stronger
against the US dollar in the quarter ($0.98) compared to last year ($1.14)
reducing sales by approximately $4.6 million. Given the magnitude of the
Canadian dollar appreciation management is pleased with the sales performance
of its operations and is comfortable that its business units are performing
well in their respective markets.
    Net income from continuing operations for the period is $1.4 million or
$0.03 per share compared to $1.8 million or $0.04 per share last year.
Earnings in the Casting and Extrusion segment were down as a result of slow
sales in the large mould business and lower margins in our extrusion die
businesses. Shipments against our order book of previously announced large
mould orders will begin at the end of the fiscal year. This segment was also
impacted by severances associated with the closure of a large mould facility
in Markham, Ontario. Earnings in the Automotive Solutions segment increased by
40% as our Moroccan operation delivered improved earnings on significantly
higher sales.
    The Company further announces its intention to establish a new large
mould facility in Mexico in order to service its customer base located there.
The facility will be largely equipped with machinery and equipment from the
Markham facility which was closed in December and will allow Exco to more
effectively and efficiently serve our customers mould rebuilding and servicing
requirements. This initiative, combined with our expansion of our Moroccan
facility which is currently underway, will further enhance our competitive
position in our key markets.

    (for further information please refer to the Company's First Quarter
Interim Financial Statements in the Investor Relations section posted at
www.excocorp.com after January 30, 2008. Alternatively, please refer to
www.sedar.com after January 30, 2008.)

    Exco Technologies Limited is a global supplier of innovative technologies
servicing the die-cast, extrusion and automotive industries. Through our 10
strategic locations, we employ 2,050 people and service a diverse and broad
customer base.

    The Annual Meeting of Shareholders of Exco Technologies Limited will be
held at 4:30 pm (EST) on January 30, 2008 and will be simultaneously webcast.
Management will discuss year-end and first quarter results. To access the live
audio webcast, please log on to www.excocorp.com or www.q1234.com a few
minutes before the event. Real Player is required for access. For those unable
to participate on January 30, 2008, an archived version will be available on
the Exco website.

    This news release contains forward-looking information and
forward-looking statements within the meaning of applicable securities laws.
We use words such as "anticipate", "plan", "may", "will", "should", "expect",
"believe", "estimate" and similar expressions to identify forward-looking
information and statements. Such forward-looking information and statements
are based on assumptions and analyses made by us in light of our experience
and our perception of historical trends, current conditions and expected
future developments, as well as other factors we believe to be relevant and
appropriate in the circumstances. Readers are cautioned not to place undue
reliance on forward-looking information and statements, as there can be no
assurance that the assumptions, plans, intentions or expectations upon which
such statements are based will occur. Forward-looking information and
statements are subject to known and unknown risks, uncertainties, assumptions
and other factors which may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed, implied or anticipated by such information and
statements. These risks, uncertainties and assumptions are described in the
Company's Management's Discussion and Analysis included in our 2007 Annual
Report, in our 2007 Annual Information Form and, from time to time, in other
reports and filings made by the Company with securities regulatory
authorities.
    While the Company believes that the expectations expressed by such
forward-looking information and statements are reasonable, there can be no
assurance that such expectations and assumptions will prove to be correct. In
evaluating forward-looking information and statements, readers should
carefully consider the various factors which could cause actual results or
events to differ materially from those indicated in the forward-looking
information and statements. Readers are cautioned that the foregoing list of
important factors is not exhaustive. Furthermore, the Company disclaims any
obligations to update publicly or otherwise revise any such factors or any of
the forward-looking information or statements contained herein to reflect
subsequent information, events or developments, changes in risk factors or
otherwise.
For further information: 
Exco Technologies Limited (TSX-XTC):
Paul Riganelli, Vice-President, Finance and Chief Financial Officer
Telephone:(905) 477-3065
Website: http://www.excocorp.com
© 2010 All rights reserved