Metaldyne Performance Group Q1 Profit Falls, Confirms Full Year Outlook

Metaldyne Performance Group Inc. MPG reported net income of $24.9 million for the first quarter, down 23.15 percent from $32.4 million in the previous year quarter. Its earnings also fell 23.4 percent to $0.36 a share from $0.47 a share in the corresponding period of the preceding year. However, adjusted net income increased 31% to $38.0 million from $29.0 million while earnings grew 31 percent to $0.55 a share from $0.42 a share in the prior year quarter.

Metaldyne Performance Group's net sales fell 3.4 percent to $739.5 million from $765.2 million in the year-ago quarter. Both earnings and revenue were well above the Street analysts' expectations of $0.40 a share and $723.25 million.

Reacting to the results, the company's CEO, George Thanopoulos, stated, "We are extremely pleased with our first quarter results. Expansion of our margins and continued strong EBITDA despite certain macro headwinds show the strength in our business. Our solid cash flow gave us flexibility to increase our dividend, start our share repurchase program and build cash on the balance sheet. We are continuing to win new business and focus on fast growing powertrain applications. We are looking forward to a successful year in 2016."

Metaldyne Performance has earlier declared a 3 percent rise in its quarterly dividend to $0.0925 a share. Its board also gave an authorization for buying back its shares worth $25 million in February.

Moving ahead, the company maintained its net sales outlook of $2.75-$2.95 billion for the fiscal year 2016. Street expects the company to generate $2.88 billion.