Husky News and Events

Check out our latest news

    • Husky Injection Molding Systems Ltd. successfully completes ownership review process and issues fiscal 2007 fourth quarter and full year results

      For release 2007-09-28


      Toronto, Ontario — Husky Injection Molding Systems Ltd. (TSX: HKY) today announced it has successfully completed the ownership review process, see separate press release issued today, and announced its results for the fourth quarter and year ended July 31, 2007. All figures in this press release are in US dollars unless otherwise stated.

      Management's Discussion and Analysis

      The following is a discussion of the consolidated financial condition and results of operations of Husky Injection Molding Systems Ltd. (the "Company") for the quarter and year ended July 31, 2007. This analysis is current as of
      September 28, 2007, and should be read in conjunction with the Company's Annual Report 2006 - Financial Supplement for the year ended July 31, 2006, together with the consolidated financial statements for the three and twelve month periods ended July 31, 2007. Additional information regarding the Company, including its Annual Information Form, can be found on SEDAR at
      www.sedar.com. All amounts are in US dollars unless otherwise noted.  

      The Company assesses its performance by reviewing the geographic mix of sales from its territories, and gross profit and profitability on a consolidated basis.

                   



      Summarized Financial Results
      (in millions of US dollars, except per share data,unaudited)

      Three Months Ended Year Ended
      July 31, July 31, July 31, July 31,
      2007 2006 2007 2006
      ------------------------------------------------
      Orders 263.8 243.0 1,121.8 963.9
      -------------------------------------------------------------------------
      Sales 321.2 248.2 1,076.6 935.3
      -------------------------------------------------------------------------
      Net Income 21.3 2.2 41.7 25.7
      -------------------------------------------------------------------------
      Earnings Per Share 0.18 0.02 0.36 0.22
      -------------------------------------------------------------------------





       

      Results of Operations

      Fourth Quarter 2007 and Fiscal Year Ended July 31, 2007

      Sales

      Sales in the fourth quarter increased 29% to $321.2 million from $248.2 million last year, representing a record fourth quarter for the Company. This increase was due to higher opening backlog levels in all territories at the start of the quarter. In North America, sales grew 21% due to higher shipments in all application markets. European sales were up 35% as higher shipments in beverage packaging (PET) and packaging more than offset reduced shipments in technical, general and automotive applications. The impact of year-over-year currency rate changes increased Euro-denominated sales by approximately $5.0 million. In Asia Pacific, sales increased 6%, principally in technical and general applications. Sales in Latin America more than doubled due to higher opening backlog. 

      Sales for the year ended July 31, 2007 were $1,076.6 million, up 15% from $935.3 million last year, representing a record level of shipments for the Company. Sales increased in all application markets and across all territories. This increase was primarily due to higher order intake across all territories, as well as higher opening backlog levels in all territories except Latin America.

      Net Income

      Net income for the fourth quarter increased to $21.3 million ($0.18 earnings per share) from $2.2 million ($0.02 earnings per share) last year. The increase was principally due to higher gross profit and a lower effective tax rate, partly offset by higher selling and administration expenses. Net income for the year was $41.7 million ($0.36 earnings per share), compared to $25.7 million ($0.22 earnings per share) last year. The increase in net income resulted from higher gross profit, a lower effective income tax rate and lower interest expense, net of interest income. These factors were partly offset by increased selling and administration expenses and a restructuring charge related to severance and associated benefits from a workforce reduction of 81 people on the Bolton campus.

      President's Message

      John Galt, the Company's President and Chief Executive Officer, commented, "Fiscal 2007 was a year of progress for Husky. Our priorities were clear: to achieve growth by building on our strong foundation, delivering greater customer value and improving operating efficiencies and speed. 

      We achieved over $1.0 billion in orders and sales for the first time in Husky's history, with solid growth across all markets and territories. Beverage packaging orders grew 13% over last year, primarily due to increased tooling demand and accelerated conversions to lightweight bottle designs. Packaging orders grew 36%, with a significant increase in the closures segment, driven by ongoing conversion to beverage cartons that include a plastic cap.

      I enjoyed seeing the talent of our global team continuing to develop. This year, we saw many new leaders taking on greater responsibilities with challenging new roles. We benefited from the leadership of many experienced people in key roles throughout the organization. In particular, I would like to thank Robert Schad for his contributions in the areas of product development and strategy.

      I am grateful to lead a committed Husky team. Together, we are continuing to develop new innovations and are learning to become leaner, faster and more efficient. I remain confident in our ability to deliver value to our customers in a number of dynamic industries, and am excited about our long-term growth prospects."

      Gross Profit

      In the fourth quarter, gross profit increased to $72.1 million (22.4% of sales) from $48.2 million (19.4% of sales) last year. Higher sales and cost reduction initiatives increased gross profit by approximately $35.0 million. These factors were partly offset by increased people-related expenses, lower margin product mix, and higher compensation incentives. In addition,unfavorable foreign exchange rates, principally on the translation of Canadian dollar-based monetary items, reduced gross profit by approximately $2.0 million.

      Gross profit for the year increased to $233.2 million from $198.1 million last year. As a result, margins were 21.7% of sales compared to 21.2% last year. Higher sales, cost reduction initiatives, and a recovery of scientific research and experimental development (SR&ED) investment tax credits increased gross profit by approximately $82.0 million. These factors were partly offset by competitive pricing pressures, increased people-related expenses, higher compensation incentives, and lower margin product mix. In addition, unfavorable foreign exchange rates reduced gross profit by approximately $10.0 million, principally due to the translation of Canadian dollar-denominated expenses. This was partly offset by the favorable impact to gross profit as a result of the stronger Euro.

      Other Income and Expenses

      For the fourth quarter, selling and administration expenses were $45.8 million, up from $41.2 million last year. The increase resulted from higher compensation incentives, consistent with improved profitability, higher people-related expenses, and unfavorable foreign exchange rates on the translation of Euro and Canadian dollar-denominated expenses. These factors were offset by lower trade show costs due to the Company's participation in a large triennial trade show last year. In addition, last year's selling and administration expenses included an asset impairment charge related to the Company's decision to close its technical center in England.

      For the year, selling and administration expenses were $171.1 million, up from $151.4 million last year. The increase was primarily due to higher people-related expenses and increased compensation incentives. The increase in compensation incentives was consistent with improved profitability. In addition, unfavorable foreign exchange rates on Euro and Canadian dollar-denominated expenses increased selling and administration costs by approximately $6.0 million.

      Interest expense for the fourth quarter, net of interest income, decreased to $1.0 million from $1.7 million last year. For the year, interest expense, net of interest income, decreased to $6.0 million from $8.3 million last year. The decrease for both the quarter and year was primarily due to higher interest income which resulted from higher average cash and cash equivalent balances.

      Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1)

      EBITDA for the fourth quarter was $40.2 million, up from $22.2 million last year. The increase was due to higher gross profit, partly offset by increased selling and administration expenses. For the year, EBITDA increased to $109.7 million from $101.5 million last year due to higher gross profit, partly offset by increased selling and administration expenses and the restructuring charge.

      Income Taxes

      In the fourth quarter, the income tax provision was $4.7 million resulting in an effective tax rate of 18%, compared to $3.1 million last year with an effective tax rate of 58%. A valuation allowance released against certain income tax assets decreased the current quarter's income tax provision by $3.5 million compared to an increase of $3.0 million in the same quarter last year. The prior year's expense was partially offset by the recognition of a $1.3 million income tax benefit on income earned in a jurisdiction where the Company had unrecognized future income tax assets, whereas no benefit was recognized in the current period. Excluding these items, the effective tax rate would have been 31% for the quarter and 27% for the corresponding quarter last year.

      The income tax provision for the year was $10.6 million compared to $12.8 million last year, resulting in an effective tax rate of 20% and 33%, respectively. The current year's income tax provision included a $2.2 million decrease in valuation allowances compared to a $6.1 million increase last year. Income earned in jurisdictions with lower tax rates than Canada reduced the current income tax provision by $5.9 million, compared to a $0.6 million reduction last year. The current year's income tax provision included tax benefits from foreign exchange translation of $2.8 million, compared to $3.6 million of benefits in fiscal 2006.

      Orders and Backlog

      Orders for the fourth quarter increased 9% to $263.8 million from $243.0 million, reflecting growth in North America and Europe, partly offset by declines in Asia Pacific and Latin America. North American orders increased due to improved activity in packaging, PET and automotive markets, which more than offset a decline in technical and general applications. Orders in Europe increased principally due to strong demand in packaging and closures. Approximately 35% of this increase was due to the favorable impact of year-over-year currency rate changes on Euro-denominated orders. In Asia Pacific, orders declined due to lower demand for PET, technical and general applications partly offset by increases in packaging and automotive. Latin American orders decreased marginally as reduced PET and packaging activity was partly offset by improvements in automotive, technical and general applications.

      Orders for the year increased 16% to $1,121.8 million from $963.9 million last year, representing a record level for the Company. The growth was driven by strong demand in all territories and across all application markets. PET growth in North America and Europe was primarily due to conversion to lightweight bottle design. Orders in packaging grew in a variety of applications, primarily for beverage cartons with a plastic cap.

      Orders in North America increased in all application markets. PET orders reflected continued growth in water and carbonated soft drink (CSD) applications. Orders in automotive, technical and general increased principally due to demand for metal molding machines for lightweighting and other applications.

      In Europe, orders grew as a result of increased demand in all applications. The increase was primarily due to higher order intake in PET and packaging, principally in Western Europe. The impact of year-over-year currency rate changes increased Euro-denominated orders by approximately $27.0 million. PET orders improved primarily as a result of increased demand in CSD and water applications. Packaging orders increased due to growth in beverage and non-beverage closure applications. Beverage closure orders increased principally due to demand for improved quality and flexibility in beverage container closures.

      In Asia Pacific, orders increased in all application markets and regions, except North Asia. The growth in PET was due to increased demand in a variety of applications and an increase in in-house manufacturing by brand owners. Automotive orders were up as a result of adding capacity in low cost jurisdictions, particularly in South Asia.

      Orders in Latin America increased across all application markets and in all regions. The PET increase was principally due to CSD. Packaging orders were higher due to demand in a variety of applications. 

      Consolidated order backlog at July 31, 2007 was $329.0 million compared to $269.8 million last year, representing a record closing level for the Company.

      Segmented Information

      Sales and Orders

      Please refer to the discussion of sales and orders above.

      Gross Profit

      The Company evaluates gross profit on a consolidated basis. The change in gross profit margin of the Company's manufacturing operations is attributable to the factors discussed previously under "Gross Profit". In general, gross profit earned by the Company's Service and Sales territories fluctuates primarily as a result of changes to internal pricing between business units, foreign exchange fluctuations, and competitive pricing pressures. The reader is reminded that internal changes in pricing between business units and foreign exchange fluctuations may affect comparative Service and Sales and manufacturing profit margins, and that such changes may give rise to segmented results which are not necessarily indicative of external business or market conditions.

      For the fourth quarter, gross profit in Asia Pacific increased principally due to the reversal of certain accruals related to items such as freight, duty, and equipment start-up costs totaling approximately $1.0 million. Higher margin product mix further contributed to the improvement in gross profit.

      Liquidity and Capital Resources

      Cash Position

      Cash provided by operating activities totaled $151.6 million compared to $105.7 million last year. The increase was due to a comparative improvement in non-cash working capital levels and higher profitability. 

      From the beginning of the current fiscal year, non-cash working capital decreased principally due to higher accounts payable and accruals, partly offset by higher accounts receivable. The increase in trade payables was primarily due to higher backlog levels and improved cash management practices. The change in accruals was due to higher compensation incentives, consistent with improved profitability, and the deferred gain associated with the $11.5 million received from MHT Molds and Hot Runner Technology AG which was awarded by the German appeal court. The increase in accounts receivable was consistent with higher sales.

      Capital Additions

      Capital additions for the year totaled $30.6 million compared to $26.2 million last year. Capital investments related principally to equipment purchases for the Company's manufacturing operations.

      Dividends

      For the three and twelve month periods ended July 31, 2007, the Company paid a dividend of $2.1 million (2006 - Nil) and $8.3 million (2006 - Nil), respectively.

      Acquisition

      On June 30, 2007, the Company acquired substantially all of the assets of Moldflow Corporation's Manufacturing Solutions Division ("Moldflow"). The Company will now offer customers hot runner temperature controllers, software products and automated process set-up and optimization tools. The purchase cost was $8.1 million and is subject to an adjustment based on the working capital of Moldflow as at the acquisition date. In addition, the Company is in the process of obtaining third party valuations of certain intangible assets. Accordingly, the purchase cost allocation is subject to adjustment.

      Capital Resources

      Debt at July 31, 2007 totaled $163.2 million, compared to $160.9 million last year. The increase was principally due to the translation of Canadian dollar-denominated debentures, partly offset by the scheduled repayment of Euro-denominated loans. Due to the strong cash position, net debt(2) was negative $37.3 million compared with $63.8 million last year. Debt as a percentage of capital(3) was 27% compared to 28% last year. Net debt as a percentage of capital(3) was negative 9% at July 31, 2007, compared to 14% last year.   

      At July 31, 2007, the Company had committed, but unutilized, credit facilities totaling $98.0 million.

      The Company expects to meet its operating cash requirements through fiscal 2008, including required working capital investments, capital expenditures, and currently scheduled repayments of debt, from cash on hand, cash flow from operations  and its committed borrowing capacity.

      Subsequent Events

      On September 28, 2007 the Company announced that:

      1.  It has entered into a support agreement with Onex, whereby Onex will offer to acquire all of the issued and outstanding common shares of Husky at a price of C$8.18 cash per common share. The total value of the transaction is approximately C$960.0 million. The transaction is expected to be completed by mid December 2007.

      2.  A dividend payment of C$0.02 per common share was approved by the Company's Board of Directors, for the first quarter of fiscal 2008. The dividend will be paid on October 31, 2007 to shareholders of record as of October 22, 2007. The payment of dividends will result in a reduction of cash and cash equivalents and shareholders' equity of approximately $2.1 million.

      Forward Looking Statements

      The information in this press release contains certain forward-looking statements which reflect the Company's current view of future events, business outlook and anticipated financial performance. The statements are also subject to risks and uncertainties which are difficult to predict. Future events, outcomes and financial performance may differ materially from those predicted in these statements as a result of factors which may include, but are not limited to: a reduction in sales of PET equipment; failure of the Company's cost reduction programs to be successful; changes in macro-economic factors that affect the Company's capital equipment markets; continued strengthening of the Canadian dollar; being named as a defendant in a legal action; competitive price pressures; customer driven price concessions and cost absorption; the timing of orders booked and shipped; changes in product mix; excess or shortage of manufacturing capacity; pricing of key raw materials used by the Company's customers; supply chain disruption, including a significant increase in the cost of a key production input; changes in governmental, environmental or regulatory policies; failures of, or deficiencies in, information systems or internal business processes; changes in the Company's dividend policy; acquisitions and the retirement of Company debt. These and additional factors are discussed in more detail on pages 10 and 11 under the "Forward-Looking Statements and Risks Factors" section in the Company's Annual Report 2006 - Financial Supplement for the year ended July 31, 2006. The Company assumes no obligation to update or revise any forward-looking statements, in order to reflect actual events, results or circumstances.

          -----------------------------
         

       (1) EBITDA: Earnings before interest, taxes, depreciation and
      amortization is a non-GAAP measure. EBITDA does not have a
      standardized meaning prescribed by GAAP, and may not be directly
      comparable to similar measures presented by other companies due to
      the nature of its calculation. The Company believes this measure may
      be relevant to stakeholders.

      (2) Net debt is defined as total debt less cash and cash equivalents. Net
      debt is a non-GAAP measure, which does not have a standardized
      meaning prescribed by GAAP, and which may not be directly comparable
      to similar measures presented by other companies due to the nature of
      its calculation.

      (3) Debt as a percentage of capital is defined as total debt divided by
      the sum of total debt and shareholders' equity. Net debt as a
      percentage of capital is defined as net debt divided by the sum of
      net debt and shareholders' equity. Debt and net debt as a percentage
      of capital are non-GAAP measures, which do not have a standardized
      meaning prescribed by GAAP, and which may not be directly comparable
      to similar measures presented by other companies due to the nature of
      their calculation.


      HUSKY INJECTION MOLDING SYSTEMS LTD.
      CONSOLIDATED BALANCE SHEETS

      (In thousands of US dollars, unaudited) July 31, July 31,
      2007 2006
      -------------------------------------------------------------------------
      ASSETS
      Current
      Cash and cash equivalents 200,432 97,112
      Accounts receivable 166,885 135,381
      Income taxes receivable 554 2,339
      Inventories 191,161 190,128
      Prepaid expenses and other assets 15,488 9,276
      Future income tax assets 24,328 21,295
      -------------------------------------------------------------------------
      Total current assets 598,848 455,531
      Cross currency swap receivable, net 13,847 8,786
      Future income tax assets 7,033 6,134
      Capital assets, net 318,385 340,041
      Intangible assets 4,775 -
      -------------------------------------------------------------------------
      Total assets 942,888 810,492
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------

      LIABILITIES AND SHAREHOLDERS' EQUITY
      Current
      Accounts payable and accrued charges 239,299 175,030
      Customers' deposits 78,076 53,440
      Income taxes payable 7,477 -
      Current portion of long-term debt 3,873 3,605
      -------------------------------------------------------------------------
      Total current liabilities 328,725 232,075
      Long-term debt 159,280 157,302
      Employee future benefits 15,612 15,037
      Future income tax liabilities 347 909
      Other long-term liabilities 590 551
      -------------------------------------------------------------------------
      Total liabilities 504,554 405,874
      -------------------------------------------------------------------------

      Shareholders' equity
      Share capital 134,682 134,403
      Retained earnings 303,652 270,215
      -------------------------------------------------------------------------
      Total shareholders' equity 438,334 404,618
      -------------------------------------------------------------------------
      Total liabilities and shareholders' equity 942,888 810,492
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------



      HUSKY INJECTION MOLDING SYSTEMS LTD.
      CONSOLIDATED STATEMENTS OF OPERATIONS

      (In thousands of US dollars, unaudited)

      Three Months Ended Year Ended
      July 31, July 31, July 31, July 31,
      2007 2006 2007 2006
      -------------------------------------------------------------------------

      Sales 321,211 248,179 1,076,605 935,255
      Cost of sales 249,109 199,956 843,426 737,112
      -------------------------------------------------------------------------
      Gross profit 72,102 48,223 233,179 198,143
      -------------------------------------------------------------------------

      Other expenses
      Selling and
      administration 45,823 41,222 171,148 151,392
      Restructuring charge (707) - 3,708 -
      Interest - current, net (1,536) (848) (4,142) (1,805)
      - long-term 2,574 2,533 10,130 10,111
      -------------------------------------------------------------------------
      Total other expenses 46,154 42,907 180,844 159,698
      -------------------------------------------------------------------------

      Income before income
      taxes 25,948 5,316 52,335 38,445
      Provision for (recovery
      of) income taxes
      Current 8,966 2,769 6,249 11,967
      Future (4,290) 322 4,368 808
      -------------------------------------------------------------------------
      4,676 3,091 10,617 12,775
      -------------------------------------------------------------------------
      Net Income 21,272 2,225 41,718 25,670
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------

      Basic and diluted
      earnings per share 0.18 0.02 0.36 0.22
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------

      Weighted average number
      of common shares
      outstanding 117,229,135 117,171,189 117,210,389 117,131,993
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------



      HUSKY INJECTION MOLDING SYSTEMS LTD.
      CONSOLIDATED STATEMENTS OF RETAINED EARNINGS

      (In thousands of US dollars, unaudited)

      Three Months Ended Year Ended
      July 31, July 31, July 31, July 31,
      2007 2006 2007 2006
      -------------------------------------------------------------------------
      Retained earnings,
      beginning of period 284,468 267,990 270,215 244,545
      Net Income 21,272 2,225 41,718 25,670
      Dividends (2,088) - (8,281) -
      -------------------------------------------------------------------------
      Retained earnings,
      end of period 303,652 270,215 303,652 270,215
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------



      HUSKY INJECTION MOLDING SYSTEMS LTD.
      CONSOLIDATED STATEMENTS OF CASH FLOWS

      (In thousands of US dollars, unaudited)

      Three Months Ended Year Ended
      July 31, July 31, July 31, July 31,
      2007 2006 2007 2006
      -------------------------------------------------------------------------

      OPERATING ACTIVITIES
      Net Income 21,272 2,225 41,718 25,670
      Add (deduct) items not
      affecting cash
      Depreciation 13,089 15,087 51,058 54,374
      Amortization 94 90 366 367
      Loss on disposal of
      capital assets 829 84 854 705
      Employee future benefits 512 (159) 575 1,131
      Future income taxes (4,527) 589 (4,494) (199)
      Other (577) (391) (1,473) (412)
      -------------------------------------------------------------------------
      30,692 17,525 88,604 81,636
      Net decrease in non-cash
      working capital balances
      related to operations 61,082 4,141 62,968 24,047
      -------------------------------------------------------------------------
      Cash provided by
      operating activities 91,774 21,666 151,572 105,683
      -------------------------------------------------------------------------

      INVESTING ACTIVITIES
      Additions to capital
      assets (11,228) (6,008) (30,554) (26,163)
      Net increase (decrease)
      in accounts payable and
      accrued charges related
      to capital asset
      additions 805 2,085 (1,897) 135
      -------------------------------------------------------------------------
      Cash used for capital
      asset additions (10,423) (3,923) (32,451) (26,028)
      Proceeds from sale
      of capital assets 215 57 542 7,664
      Purchase of net assets
      of business (7,000) - (7,000) -
      -------------------------------------------------------------------------
      Cash used in investing
      activities (17,208) (3,866) (38,909) (18,364)
      -------------------------------------------------------------------------

      FINANCING ACTIVITIES
      Dividends (2,088) - (8,281) -
      Repayment of long-term
      debt (953) (901) (3,718) (10,844)
      Issuance of common shares 80 68 279 418
      -------------------------------------------------------------------------
      Cash used in financing
      activities (2,961) (833) (11,720) (10,426)
      -------------------------------------------------------------------------

      -------------------------------------------------------------------------
      Effect of exchange rate
      changes on cash and
      cash equivalents 579 621 2,377 1,070
      -------------------------------------------------------------------------

      Net increase in cash
      and cash equivalents
      during the period 72,184 17,588 103,320 77,963
      Cash and cash equivalents,
      beginning of period 128,248 79,524 97,112 19,149
      -------------------------------------------------------------------------
      Cash and cash equivalents,
      end of period 200,432 97,112 200,432 97,112
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------

      Supplementary cash flow
      information
      Cash income taxes paid
      (received), net (10,687) 3,343 (2,876) 11,536
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Cash interest paid, net 3,245 4,713 5,942 8,880
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------




      HUSKY INJECTION MOLDING SYSTEMS LTD.
      SEGMENTED INFORMATION

      (In thousands of US dollars, unaudited)

      Three Months Ended July 31, 2007
      ----------------------------------------------------------------
      Service and Sales territories
      ----------------------------------
      Manufac- Elimina-
      turing tions &
      North Latin Asia oper- other
      America America Europe Pacific ations (i) Total
      -------------------------------------------------------------------------
      External
      sales 112,743 37,266 119,043 52,159 - - 321,211
      Inter-
      segment
      sales - - - - 273,020 (273,020) -
      -------------------------------------------------------------------------
      Total
      sales 112,743 37,266 119,043 52,159 273,020 (273,020) 321,211
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Gross
      profit 19,020 6,123 12,040 10,799 26,451 (2,331) 72,102
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Deprecia-
      tion and
      amort-
      ization 769 225 700 480 9,705 1,304 13,183
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Capital
      asset
      additions 169 75 147 188 7,140 3,509 11,228
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Total
      assets 94,635 25,033 122,401 113,029 334,027 253,763 942,888
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------


      Three Months Ended July 31, 2006
      ----------------------------------------------------------------
      Service and Sales territories
      ----------------------------------
      Manufac- Elimina-
      turing tions &

      North Latin Asia oper- other
      America America Europe Pacific ations (i) Total
      -------------------------------------------------------------------------
      External
      sales 93,028 17,856 88,068 49,227 - - 248,179
      Inter-
      segment
      sales - - - - 183,767 (183,767) -
      -------------------------------------------------------------------------
      Total
      sales 93,028 17,856 88,068 49,227 183,767 (183,767) 248,179
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Gross
      profit 16,920 3,189 8,967 7,801 4,924 6,422 48,223
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Deprecia-
      tion and
      amort-
      ization 823 208 2,003 988 9,854 1,301 15,177
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Capital
      asset
      additions 226 123 213 1,446 3,206 794 6,008
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Total
      assets 96,483 26,037 100,424 96,824 343,288 147,436 810,492
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------


      Year Ended July 31, 2007
      ----------------------------------------------------------------
      Service and Sales territories
      ----------------------------------
      Manufac- Elimina-
      turing tions &
      North Latin Asia oper- other
      America America Europe Pacific ations (i) Total
      -------------------------------------------------------------------------
      External
      sales 379,861 93,855 396,055 206,834 - - 1,076,605
      Inter-
      segment
      sales - - - - 912,200 (912,200) -
      -------------------------------------------------------------------------
      Total
      sales 379,861 93,855 396,055 206,834 912,200 (912,200) 1,076,605
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Gross
      profit 63,771 15,091 39,029 29,230 85,566 492 233,179
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Deprecia-
      tion and
      amort-
      ization 3,097 863 1,849 2,057 38,261 5,297 51,424
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Capital
      asset
      additions 438 462 1,008 1,293 22,500 4,853 30,554
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Total
      assets 94,635 25,033 122,401 113,029 334,027 253,763 942,888
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------


      Year Ended July 31, 2006
      ----------------------------------------------------------------
      Service and Sales territories
      ----------------------------------
      Manufac- Elimina-
      turing tions &
      North Latin Asia oper- other
      America America Europe Pacific ations (i) Total
      -------------------------------------------------------------------------
      External
      sales 367,491 90,632 308,902 168,230 - - 935,255
      Inter-
      segment
      sales - - - - 770,058 (770,058) -
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Total
      sales 367,491 90,632 308,902 168,230 770,058 (770,058) 935,255
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Gross
      profit 63,347 14,360 33,716 27,423 54,359 4,938 198,143
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Deprecia-
      tion and
      amort-
      ization 3,323 819 3,858 2,342 39,212 5,187 54,741
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Capital
      asset
      additions 364 348 514 3,303 19,521 2,113 26,163
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      Total
      assets 96,483 26,037 100,424 96,824 343,288 147,436 810,492
      -------------------------------------------------------------------------
      -------------------------------------------------------------------------
      (i) Eliminations and other includes Corporate activities and assets not
      attributable to the operating segments.

      External sales to customers in Canada and the United States for the three
      months ended July 31, 2007 were $7,817 (2006 - $8,042) and $104,926 (2006 -
      $84,986), respectively. External sales to customers in Canada and the United
      States for the year ended July 31, 2007 were $21,056 (2006 - $25,865) and
      $358,805 (2006 - $341,626), respectively. External sales are attributed to the
      country in which the customer is domiciled.
      Net capital assets in Canada, the United States and Luxembourg as at July
      31, 2007 were $100,198 (2006 - $111,550), $72,089 (2006 - $83,288) and $91,786
      (2006 - $97,048), respectively.


      For further information: Daniel Gagnon, Vice President, Finance & CFO, (905) 951-5000

      About Husky — Husky Injection Molding Systems (www.husky.ca) is a leading global supplier of injection molding equipment and services to the plastics industry. The company has more than 40 service and sales offices, supporting customers in over 100 countries. Husky's manufacturing facilities are located in Canada, the United States, Luxembourg and China. 

      For more information, please contact:
      Media Relations
      Husky Injection Molding Systems
      E-mail: media@husky.ca

This website uses cookies that are necessary to deliver an enjoyable experience and ensure its correct functionality and cannot be turned off. Optional cookies are used to improve the page with analytics, by clicking "Yes, I accept" you consent to this use of cookies. Learn more.