For Immediate Release                                                     CONTACT:

                                                                                                Stephen E. Graham

                                                                                                Chief Financial Officer                                                                                                          Shiloh Industries, Inc.

(216) 265-6656

 

                                                                       

Shiloh INDUSTRIES credit

rating raised to ‘b1’, outlook Stable
by Moody’s Investors services

 

 

CLEVELAND, OH, July 1, 2004 – Shiloh Industries, Inc. (Nasdaq:SHLO) today announced that on July 1, 2004, Moody’s Investors Services raised its rating of the senior secured credit facility of Shiloh Industries, Inc. by two grades to 'B1' with a stable outlook from 'B3' with a stable outlook.

 

Moody’s has upgraded Shiloh’s rating based on the Company’s strong cash flow performance and dramatically improved cash flow protection measures.  Shiloh's debt of $148 million as reported at April 30, 2004 has been reduced by about $48 million since April 30, 2003 and by $140 million from the peak at January 31, 2002 because of the disciplined use of free cash flow to lower leverage. Cost control and operating efficiency measures have been employed to reduce the Company's breakeven point and materially increase margins. Earlier this year, Shiloh entered into a new $185 million senior credit facility that carries less restrictive covenants.

 

The revision of Shiloh’s credit rating by Moody’s follows the recent upgrade of the Company’s corporate credit rating by Standard & Poor’s Ratings Services to B+ with a positive outlook from B with a negative outlook.

           

Shiloh's management team, in place since early 2002, has made significant progress in stabilizing the Company's operating results, improving the liquidity position, and reducing debt. Operating results and liquidity began to erode in mid-2001 because of softness in Shiloh's end-markets, combined with challenges arising from facility expansions and start-up operations that overextended the Company's resources. In the past two years, management has reduced the workforce, initiated operating efficiencies, eliminated unprofitable products, and lowered working capital requirements.

 

Headquartered in Cleveland, Ohio, Shiloh Industries is a leading manufacturer of first operation blanks, engineered welded blanks, complex stampings and modular assemblies for the automotive and heavy truck industries. The Company has 11 operating locations in Ohio, Georgia, Michigan, Tennessee and Mexico, and employs approximately 2,200.