Mecachrome International reports solid third quarter results



    MONTREAL, Nov. 13 /CNW Telbec/ - Mecachrome International Inc. (TSX: MCH)
today reported its results for the third quarter of fiscal 2007 ended
September 30, 2007.

    
     For the third quarter ended September 30, 2007:

    - Revenues rose 10.3% to (euro)71.0 million on strong aerospace and
      commercial automotive segments
    - Operating income (Adjusted EBITDA) reached (euro)15.0 million in the
      third quarter, or 21.1% margin, representing a 38.9% year-over-year
      increase
    - Adjusted EBIT reached (euro)8.2 million in the third quarter, or 11.6%
      margin, representing a 93.0% year-over-year increase
    - Net earnings was (euro)0.9 million, or (euro)0.08 per share, fully
      diluted, compared with ((euro)11.3) million, or ((euro)1.33) per share,
      fully diluted, for the same quarter last year
    - Cash flows from operations decreased to (euro)0.9 million, from
     (euro)3.5 million in the previous year

    For the nine months ended September 30, 2007:

    - Revenues rose 14.7% to (euro)220.4 million on strong aerospace and
      commercial automotive segments
    - Operating income (Adjusted EBITDA) reached (euro)41.2 million, or 18.7%
      margin, representing a 25.0% year-over-year increase
    - Adjusted EBIT reached (euro)19.5 million, or 8.9% margin, representing
      a 61.4% year-over-year increase
    - Net earnings was ((euro)3.8) million, or ((euro)0.39) per share, fully
      diluted, compared with ((euro)24.3) million, or ((euro)3.16) per share,
      fully diluted, for the same period last year
    - Cash flows from operations increased to (euro)9.4 million, from
      ((euro)3.6) million in the previous year

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financial Highlights
    (in thousands of euros, except shares and per share data)
    -------------------------------------------------------------------------
                                       Unaudited                   Unaudited
                       Three-month periods ended    Nine-month periods ended
                                    September 30,               September 30,
                       -------------------------    -------------------------
                              2007          2006          2007          2006
                       ------------   -----------   -----------   -----------
    Revenues                70,989        64,357       220,360       192,186
    Adjusted EBITDA         15,005        10,799        41,200        32,963
    Adjusted EBIT            8,241         4,271        19,524        12,100
    Net Earnings               924       (11,314)       (3,784)      (24,316)
    Earnings (loss)
     per share - basic        0.09         (1.33)        (0.39)        (3.16)
    Earnings (loss)
     per share - diluted      0.08         (1.33)        (0.39)        (3.16)
    Cash flow from
     operations                938         3,451         9,428        (3,600)
    Basic weighted
     average number of
     Common Shares
     outstanding        10,725,552     8,733,482     9,623,711     8,733,482
    Diluted weighted
     average number
     of Common Shares
     outstanding        11,987,382     8,733,482     9,623,711     8,733,482
    -------------------------------------------------------------------------


    "We are pleased with our performance in the third quarter which
demonstrated continued strong operational performance," said Mecachrome's
President and CEO, Guillaume Casella. "Our business activities were solid
particularly in our aerospace and commercial automotive segments, and
demonstrated growth despite the third quarter seasonal slowdown. Our
profitability was driven by continued top-line growth and improvements at the
gross margin and operating margin levels. We are particularly satisfied with
this profitability improvement, a direct consequence of the hard work and
dedication of all Mecachrome employees."

    SELECTED FINANCIAL INFORMATION

    A summary of Mecachrome's consolidated financial results as at, and for
the quarterly and year-to-date periods ended September 30, 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      Nine-month periods ended
                                  September 30,                 September 30,
                   ----------------------------  ----------------------------
                                         Varia-                        Varia-
                      2007      2006      tion      2007      2006      tion
                   ----------------------------  ----------------------------

    Revenues        70,989    64,357     6,632   220,360   192,186    28,174
    Cost of
     goods sold     50,042    45,692     4,350   158,671   136,131    22,540
                   ----------------------------  ----------------------------
    Gross margin    20,947    18,665     2,282    61,689    56,055     5,634
                   ----------------------------  ----------------------------
                      29.5%     29.0%               28.0%     29.2%

    Selling,
     general and
     administrative
     expenses        5,942     7,866    (1,924)   20,489    23,092    (2,603)
                   ----------------------------  ----------------------------
                    15,005    10,799     4,206    41,200    32,963     8,237
                   ----------------------------  ----------------------------
                      21.1%     16.8%               18.7%     17.2%

    Amortization     6,764     6,528       236    21,676    20,863       813
    Interest
     expense         6,419     6,617      (198)   20,401    16,107     4,294
    Exchange
     loss (gain)      (875)     (608)     (267)   (2,870)      745    (3,615)
    Special items              9,031    (9,031)    2,318    22,392   (20,074)
    Other expenses
     (income)          757      (289)    1,046       918       (36)      954
                   ----------------------------  ----------------------------
                    13,065    21,279    (8,214)   42,443    60,071   (17,628)
                   ----------------------------  ----------------------------
    Earnings (Loss)
     before income
     taxes and
     minority
     interest        1,940   (10,480)   12,420    (1,243)  (27,108)   25,865
    Income taxes
      Current          457        57       400     1,545       330     1,215
      Future           541       769      (228)      972    (3,103)    4,075
                   ----------------------------  ----------------------------
                       998       826       172     2,517    (2,773)    5,290
                   ----------------------------  ----------------------------
    Earnings (Loss)
     before minority
     interest          942   (11,306)   12,248    (3,760)  (24,335)   20,575
                   ----------------------------  ----------------------------
    Minority interest  (18)       (8)      (10)      (24)       19       (43)
                   ----------------------------  ----------------------------
    Net earnings
     (loss)            924   (11,314)   12,238    (3,784)  (24,316)   20,532
                   ----------------------------  ----------------------------

    Special items              9,031    (9,031)    2,318    22,392   (20,074)
    Exchange
     loss (gain)      (875)     (608)     (267)   (2,870)      745    (3,615)
                   ----------------------------  ----------------------------
    Adjusted net
     earnings (loss)    49    (2,891)    2,940    (4,336)   (1,179)   (3,157)
                   ----------------------------  ----------------------------

    Other Financial
     information
      Cash           3,753
      Total debt   260,046
      Shareholders'
       equity       12,294
      Cash flow
       from
       operations      938     3,451               9,428    (3,600)
      Capital
       expenditures
       (net)         4,563     1,911              21,369    13,108


    CONFERENCE CALL

    Mecachrome International will hold a conference call to discuss third
quarter results at 9:00 a.m. Eastern Time (or 3:00 p.m. Paris time/ 2:00 p.m.
London time) on Wednesday, November 14, 2007.
    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: 21252944#

    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 statement

    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 supplemented prep prospectus
dated October 12, 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: Complete unaudited interim 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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