Mecachrome International reports fourth quarter & year-end results for 2007



    MONTREAL, March 31 /CNW Telbec/ - Mecachrome International Inc.
(TSX: MCH) today reported its results for the fourth quarter and year ended
December 31, 2007.
    For the fourth quarter ended December 31, 2007:

    
    - Revenues rose 7.2% to (euro)74.6 million on strong aerospace and
      automotive industries
    - Adjusted EBITDA reached (euro)13.4 million in the fourth quarter, or
      17.9% margin
    - Adjusted net loss was (euro)0.8 million, or ((euro)0.03) per share,
      fully diluted, compared with a loss of (euro)6.9 million, or
      ((euro)0.79) per share, fully diluted, for the same quarter last year
    - Cash flows from operating activities decreased to ((euro)2.8) million,
      from (euro)15.9 million in the previous year

    For the year ended December 31, 2007:

    - Revenues rose 12.7% to (euro)295.0 million on strong aerospace and
      automotive industries
    - Adjusted EBITDA reached (euro)57.4 million, or 19.5% margin
    - Adjusted net loss was (euro)1.3 million, or ((euro)0.10) per share,
      fully diluted, compared with a loss of (euro)8.9 million, or
      ((euro)1.35) per share, fully diluted, for the same period last year
    - Cash flows from operating activities decreased to (euro)6.6 million,
      from (euro)12.3 million in the previous year

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financial Highlights

    (expressed in thousands of euros, except shares and per share data)
    -------------------------------------------------------------------------

                         Three-month periods ended                   Audited
                                       December 31   Years ended December 31
                         -------------------------   ------------------------
                                   2007       2006           2007       2006
                         -------------------------   ------------------------
    Revenues                     74,630     69,590        294,990    261,776
    Adjusted EBITDA              13,374     13,012         57,444     45,230
    Adjusted EBIT                 2,959      4,236         25,353     15,591
    Net loss                    (11,622)    (7,974)       (15,406)   (32,290)
    Adjusted net loss              (751)    (6,922)        (1,299)    (8,882)
    Adjusted net loss per
     share - basic                (0.03)     (0.79)         (0.10)     (1.35)
    Adjusted net loss per
     share - diluted              (0.03)     (0.79)         (0.10)     (1.35)
    Cash flows from operations   (2,844)    15,892          6,584     12,292
    Basic weighted average
     number of shares
     outstanding (in thousands)  22,073      8,734         12,798      8,734
    Diluted weighted average
     number of shares
     outstanding (in thousands)  22,073      8,734         12,798      8,734
    -------------------------------------------------------------------------

    "We are pleased with our performance in the fourth quarter and fiscal 2007
which demonstrated continued strong operational performance," said
Mecachrome's President and Chief Executive Officer, Guillaume Casella. "Our
business activities were solid in 2007 particularly in our aerospace and
automotive industries. Our results were driven by continued top-line growth
and improvements at the adjusted EBITDA level. As we move into 2008 and
continue to pursue new business opportunities and respond to a large number of
request for proposals, executing our backlog remains our top near-term
priority to grow profitably."

    SELECTED FINANCIAL INFORMATION

    A summary of Mecachrome's consolidated financial results as at, and for
the quarterly period and year ended December 31, 2007 and 2006 is included
below. The full interim report and Management's Discussion and Analysis can be
found on www.mecachrome.com or on www.sedar.com.

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Selected Financial Information

    (in thousands of euros)
    -------------------------------------------------------------------------

                           Three-month
                         periods ended                  Years ended
                           December 31                  December 31
                      -------------------------   ---------------------------
                                           Vari-                        Vari-
                         2007     2006    ation      2007      2006    ation
                                                 (audited) (audited)
                      -------------------------   ---------------------------

    Revenues           74,630   69,590    5,040   294,990   261,776   33,214
    Cost of sales      54,267   43,061   11,206   212,938   179,192   33,746
                      -------------------------   ---------------------------
    Gross margin       20,363   26,529   (6,166)   82,052    82,584     (532)
                      -------------------------   ---------------------------
                         27.3%    38.1%              27.8%     31.5%

    Selling, general
     and
     administrative
     expenses           6,989   13,517   (6,528)   24,608    37,354  (12,746)
                      --------------------------   --------------------------
    Adjusted EBITDA    13,374   13,012      362    57,444    45,230   12,214
                      --------------------------   --------------------------
                         17.9%    18.7%              19.5%     17.3%

    Amortization       10,415    8,776    1,639    32,091    29,639    2,452
                       -------------------------   --------------------------
    Adjusted EBIT       2,959    4,236   (1,277)   25,353    15,591    9,762
                      -------------------------   --------------------------
    Interest expense    5,757    7,286   (1,529)   26,158    23,393    2,765
    Special items      10,590      303   10,287    12,908    22,695   (9,787)
    Other expenses        281      749     (468)    1,199       713      486
                      -------------------------   --------------------------

    Loss before
     income taxes
     and minority
     interest         (13,669)  (4,102)  (9,567)  (14,912)  (31,210)  16,298
                      -------------------------   --------------------------
    Income taxes
      Current          (1,584)    (206)  (1,378)      (39)      124     (163)
      Future             (445)   4,061   (4,506)      527       958     (431)
                      -------------------------   --------------------------
                       (2,029)   3,855   (5,884)      488     1,082     (594)
                      -------------------------   --------------------------
    Loss before
     minority
     interest         (11,640)  (7,957)  (3,683)  (15,400)  (32,292)  16,892
    Minority interest      18      (17)      35        (6)        2       (8)
                      -------------------------   --------------------------
    Net loss          (11,622)  (7,974)  (3,648)  (15,406)  (32,290)  16,884
                      -------------------------   --------------------------

    Special items      10,590      303   10,287    12,908    22,695   (9,787)
    Other expenses        281      749     (468)    1,199       713      486
                      -------------------------   --------------------------
    Adjusted net loss    (751)  (6,922)   6,171    (1,299)   (8,882)   7,583
                      -------------------------   --------------------------


    Other Financial information
        Cash and cash
         equivalents and
         short-term
         investments   32,338   31,141             32,338    31,141
        Total debt    203,496  263,702            203,496   263,702
        Shareholders'
         equity       106,284   13,676            106,284    13,676
        Cash flows
         from operating
         activities    (2,844)  15,892              6,584    12,292
        Property,
         plant and
         equipment,
         net           11,328    6,066             32,697    19,174


    CONFERENCE CALL

    Mecachrome International will hold a conference call to discuss fourth
quarter and year-end results at 9:00 a.m. Eastern Time (or 3:00 p.m. Paris
time/ 2:00 p.m. London time) on Tuesday April 1, 2008.

    Participants are invited to attend by connecting 10 minutes prior to the
call to the following:

             Audio webcast:  www.mecachrome.com or www.cnw.ca
             Dial-in:        (514) 807-8791

    Following a brief presentation, the company will address questions from
research analysts. Media and investors are invited to participate in
listen-only mode. The company will be available to address other questions
following the call.

    A replay of the conference call may be accessed by:

             Audio webcast:  www.mecachrome.com or www.cnw.ca
             Telephone:      (416) 640-1917 Pass code: 21265651#.

    About Mecachrome International Inc.

    Mecachrome is a leader in the design, engineering, manufacture and
assembly of complex precision-engineered components for aircraft and
automotive applications, including aerostructural and aircraft engine
components, high-end automobile engine components and motor racing engines.
Since 1937, we have established a significant presence and global reputation
in certain high-precision sectors of the aerospace, automotive and industrial
equipment industries, providing services primarily to original equipment
manufacturers. We currently operate 11 state-of-the-art facilities,
principally in France and Canada, and employ over 2,000 employees. For more
information on the company, visit www.mecachrome.com

    Forward-looking statements

    All statements, other than statements of historical facts, included in
this news release are forward-looking statements or contain forward-looking
information (within the meaning of the Québec Securities Act and the Ontario
Securities Act). Although we believe that the expectations reflected in these
forward-looking statements and forward-looking information are reasonable,
these statements involve risks and uncertainties and are not guarantees of
future performance. We can give no assurance that these estimates and
expectations will prove to have been correct, and actual outcomes and results
may differ materially from what is expressed, implied or projected in such
forward-looking statements and forward-looking information. There are a number
of important risks and uncertainties that could, and often do, cause our
actual results to differ materially from those indicated or implied by
forward-looking statements and forward-looking information, including the
risks and uncertainties discussed in Mecachrome's Annual Information Form for
the year ended December 31, 2007. Given the uncertainty of forward-looking
statements and forward-looking information, investors are cautioned not to
place undue reliance on these statements and information. The forward-looking
statements and forward-looking information speak only as of the date made, and
Mecachrome expressly disclaims any intention or obligation to update or revise
any forward-looking statements or forward looking information, whether as a
result of new information, future events or otherwise, except as may be
required by applicable law.

    Note to readers: Audited consolidated financial statements and
Management's Discussion & Analysis of financial results are available on
Mecachrome's website at www.mecachrome.com or on www.sedar.com.
    
    %SEDAR: 00025729EF




For further information:

For further information: Elina Tea, Director Investor
Relations/Corporate Finance, (514) 373-2009, etea@mecachrome.com

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MECACHROME INTERNATIONAL INC.

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