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Martinrea International Inc. Releases Second Quarter Results and Announces Dividend, Record Quarterly Revenues, Improved Profits

TORONTO, ONTARIO -- (Marketwired) -- 08/14/14 -- Martinrea International Inc. (TSX:MRE), a leader in the production of quality metal parts, assemblies and modules and fluid management systems focused primarily on the automotive sector, announced today the release of its financial results for the second quarter ended June 30, 2014, which include record quarterly revenues and improving operations and a quarterly dividend.

HIGHLIGHTS


-  Record Quarterly Revenues                              
-  Quarter-over-Quarter Operational and Margin Improvement
-  Solid Quarter for Martinrea Honsel                     
-  Good Prospects                                         
-  Dividend of $0.03 per share announced                  

OVERVIEW

Nick Orlando, Martinrea's President and Chief Executive Officer, stated: "We had a solid quarter, with increasing profits, as we continue to focus on our operations. We are making progress everywhere. In our second quarter we saw operational and financial improvements from the previous quarter. Most of our businesses are doing well-our aluminum and fluids businesses had strong quarters; our assembly operations are doing well; and many of our metallic plants are meeting or exceeding budget. Certain U.S. metallic plants are making the necessary improvements to operations that will improve margin and did so in the second quarter. In terms of new business won since our last release, we have won approximately $20 million in incremental annualized business including $15 million of incremental metallic business with Chrysler on its minivan line starting in 2016 and $5 million in fluid management product with General Motors on the Camaro and certain Cadillac platforms starting in 2016. We also continue to invest in the future. Our launch backlog currently sits at over $500 million and will entail new operating facilities in Spain for the Jaguar-Land Rover aluminum swivel bearing launching in 2015, China and Mexico for an aluminum engine cradle for GM on its Omega platform starting in 2015 and Riverside, Missouri for new modular assembly business for the GM Malibu starting in 2015."

Fred Di Tosto, Martinrea's Chief Financial Officer, stated: "Revenues for our second quarter, excluding tooling revenues, were approximately $870 million, within the range of our previously announced sales guidance, and a record quarter for us. In the second quarter, our adjusted earnings per share, on a basic and diluted basis, was $0.28, after adjusting for relatively low unusual items comprised of non-insured litigation costs, and within our quarterly guidance. The Martinrea Honsel operations contributed $0.08 per share to our second quarter results, a solid contribution. With Martinrea Honsel now wholly-owned, this division is expected to continue to contribute strongly to our overall business."

Rob Wildeboer, Martinrea's Executive Chairman, stated: "2014 is coming along nicely. Our third quarter is expected to generate revenues for the quarter, excluding tooling revenues, in the range of $780 to $810 million and we believe our earnings per share will be in the range of 23 to 27 cents per share, one of the best third quarters in our history from a financial point of view. Our fourth quarter should be very good for us. We will see some benefits of the acquisition of the minority interest of Martinrea Honsel in the third quarter, but more so in the fourth quarter and beyond. Today we are one Martinrea, with a fully-owned Martinrea Honsel, which will allow us to maximize our opportunities in lightweighting, both in aluminum and metals. We are financially and operationally strong, with great prospects. In summary, the future looks good."

RESULTS OF OPERATIONS

Martinrea currently employs over 13,000 skilled and motivated people in 38 operating plants in Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain and China. Martinrea's objective is to develop a state-of-the-art international metal forming and fluid systems business that will continue to be and further become a key supplier in the automotive industry. Growth will be prudent, profitable and based on innovation. The backbone of future growth is the development of talented people. The significant development of the Company since 2002 has reflected this business strategy and contributed to the growing profitability of the Company.

Results of operations include certain unusual items which have been separately disclosed, where appropriate, in order to provide a clear assessment of the underlying Company results. This has required the use of non-IFRS measures in the Company's disclosures that management believes provides the most appropriate basis on which to evaluate the Company's results.

OVERALL RESULTS


                                                                            
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                        Three months    Three months                        
                          ended June      ended June                        
                            30, 2014        30, 2013   $ Change   % Change  
----------------------------------------------------------------------------
Revenue                $     930,915   $     826,274    104,641       12.7% 
Gross Margin                  95,863          91,183      4,680        5.1% 
Operating Income              43,129          46,942     (3,813)      (8.1%)
Net Earnings for the                                                        
 period                       29,626          32,111     (2,485)      (7.7%)
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Net Earnings                                                                
 Attributable to                                                            
 Equity Holders of                                                          
 the Company           $      23,308   $      27,514     (4,206)     (15.3%)
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Net Earnings per                                                            
 Share - Basic         $        0.28   $        0.33      (0.05)     (15.2%)
Net Earnings per                                                            
 share - Diluted       $        0.27   $        0.33      (0.06)     (18.2%)
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Unusual Items(i)       $         306   $           -        306        0.0% 
Adjusted Net                                                                
 Earnings                                                                   
 Attributable to                                                            
 Equity Holders of                                                          
 the Company(i)               23,614          27,514     (3,900)     (14.2%)
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Adjusted Net                                                                
 Earnings per                                                               
 share(i) - Basic                                                           
 and Diluted           $        0.28   $        0.33      (0.05)     (15.2%)
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                          Six months      Six months                        
                          ended June      ended June                        
                            30, 2014         30,2013   $ Change   % Change  
----------------------------------------------------------------------------
Revenue                $   1,795,408   $   1,595,396    200,012       12.5% 
Gross Margin                 183,342         166,898     16,444        9.9% 
Operating Income              80,688          81,615       (927)      (1.1%)
Net Earnings for the                                                        
 period                       56,285          55,616        669        1.2% 
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Net Earnings                                                                
 Attributable to                                                            
 Equity Holders of                                                          
 the Company           $      39,999   $      47,402     (7,403)     (15.6%)
----------------------------------------------------------------------------
Net Earnings per                                                            
 Share - Basic         $        0.47   $        0.57      (0.10)     (17.5%)
Net Earnings per                                                            
 share - Diluted       $        0.47   $        0.56      (0.09)     (16.1%)
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Unusual Items(i)       $       1,171   $           -      1,171        0.0% 
Adjusted Net                                                                
 Earnings                                                                   
 Attributable to                                                            
 Equity Holders of                                                          
 the Company(i)               41,170          47,402     (6,232)     (13.1%)
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Adjusted Net                                                                
 Earnings per                                                               
 share(i) - Basic      $        0.49   $        0.57      (0.08)     (14.0%)
Adjusted Net                                                                
 Earnings per                                                               
 share(i) - Diluted    $        0.48   $        0.56      (0.08)     (14.3%)
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(i) Non-IFRS Measures

The Company prepares its financial statements in accordance with International Financial Reporting Standards ("IFRS"). However, the Company has included certain non-IFRS financial measures and ratios in this Press Release that the Company believes provides useful information in measuring the financial performance and financial condition of the Company. These measures do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to the other financial measures determined in accordance with IFRS. Non-IFRS measures referred to in the analysis include "adjusted net earnings" and "adjusted net earnings per share on a basic and diluted basis" and are defined in the Tables A and B under "Adjustments to Net Earnings" of this Press Release.

REVENUE


Three months ended June 30, 2014 to three months ended June 30, 2013        
comparison                                                                  
                                                                           
---------------------------------------------------------------------------
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                        Three months   Three months                        
                          ended June     ended June                        
                            30, 2014       30, 2013   $ Change   % Change  
---------------------------------------------------------------------------
North America          $     745,304  $     651,799     93,505       14.3% 
Europe                       173,037        159,959     13,078        8.2% 
Rest of World                 12,574         14,516     (1,942)     (13.4%)
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Revenue                $     930,915  $     826,274    104,641       12.7% 
---------------------------------------------------------------------------
---------------------------------------------------------------------------

The Company's consolidated revenues for the second quarter of 2014 increased by $104.6 million or 12.7% to $930.9 million as compared to $826.3 million for the second quarter of 2013. The total overall increase in revenues was driven by increases in the Company's North America and Europe operating segments, partially offset by a year-over-year decrease in revenues in the Rest of the World.

Revenues for the second quarter of 2014 in the Company's North America operating segment increased by $93.5 million or 14.3% to $745.3 million from $651.8 million for the second quarter of 2013. The increase was due to an overall increase in North American OEM light vehicle production, in particular year-over-year increased production volumes on the GM Equinox/Terrain and Ford Escape, two of the Company's largest platforms; the launch of new programs during or subsequent to the second quarter of 2013, including GM's full size pick-up trucks, BMW X5, Ford Transit and the Chrysler 200; a $20.2 million increase in tooling revenues, which are typically dependent on the timing of tooling construction and final acceptance by the customer; and the impact of foreign exchange on the translation of U.S. denominated production revenue, which had a positive impact on revenue for the second quarter of 2014 of $40.8 million.

Revenues for the second quarter of 2014 in the Company's Europe operating segment, comprised predominantly of the European operations of Martinrea Honsel, increased by $13.1 million or 8.2% to $173.0 million from $160.0 million for the second quarter of 2013. The increase was predominantly due to a benefit from the impact of foreign exchange on the translation of Euro denominated production revenue, partially offset by a $4.1 million decrease in tooling revenues. OEM light vehicle and engine production volumes in Europe were generally flat year-over-year.

Revenues for the second quarter of 2014 in the Company's Rest of World operating segment, currently comprised of the Brazilian operations of Martinrea Honsel and a facility in China in its early stages, decreased by $1.9 million or 13.4% to $12.6 million from $14.5 million in the second quarter of 2013. The decrease can be attributed to a year-over-year decrease in overall OEM light and medium-heavy vehicle production in Brazil and the translation of Brazilian Real denominated production revenue, which had a negative impact on revenue for the second quarter of 2014 of $0.4 million as compared to the second quarter of 2013, partially offset by the launch of the Company's first product in China for the Ford CD4 program, which began to ramp up at the end of the second quarter of 2013, and a $0.6 million year-over-year increase in tooling revenues.

Overall tooling revenues increased by $16.7 million from $44.5 million for the second quarter of 2013 to $61.2 million for the second quarter of 2014.


Six months ended June 30, 2014 to six months ended June 30, 2013 comparison 
                                                                           
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---------------------------------------------------------------------------
                          Six months     Six months                        
                               ended          ended                        
                            June 30,       June 30,                        
                                2014           2013   $ Change   % Change  
---------------------------------------------------------------------------
North America          $   1,408,968  $   1,262,330    146,638       11.6% 
Europe                       356,690        301,770     54,920       18.2% 
Rest of World                 29,750         31,296     (1,546)      (4.9%)
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Revenue                $   1,795,408  $   1,595,396    200,012       12.5% 
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The Company's consolidated revenues for the six months ended June 30, 2014 increased by $200.0 million or 12.5% to $1,795.4 million as compared to $1,595.4 million for the six months ended June 30, 2013. The total overall increase in revenues was driven by increases in the Company's North America and Europe operating segments, partially offset by a year-over-year decrease in revenues in the Rest of the World.

Revenues for the six months ended June 30, 2014 in the Company's North America operating segment increased by $146.6 million or 11.6% to $1,409.0 million from $1,262.3 million for the six months ended June 30, 2013. Revenues in North America for the six months ended June 30, 2014 were negatively impacted by an $8.9 million year-over-year decrease in tooling revenues, which are typically dependent on the timing of tooling construction and final inspection and acceptance by the customer. Excluding the decrease in tooling revenues, revenues in the North America operating segment increased by $155.5 million or 12.3%. The increase was generally due to overall improved North American OEM light vehicle production, in particular year-over-year increased production volumes on the GM Equinox/Terrain and Ford Escape, two of the Company's largest platforms, the launch of new programs during 2013, including GM's full size pick-up trucks, BMW X5, Chevrolet Impala, Ford Transit and the Chrysler 200, and an $86.3 million benefit from the impact of foreign exchange on the translation of U.S. dollar denominated revenue.

Revenues for the six months ended June 30, 2014 in the Company's Europe operating segment, comprised predominately of the European operations of Martinrea Honsel, increased by $54.9 million or 18.2% to $356.7 million from $301.8 million for the six months ended June 30, 2013. The increase was due to the launch of new incremental aluminum business with Jaguar Land Rover including the sub-frame and shock towers for the new Range Rover Sport; an overall year-over-year increase in European OEM production volumes; a $2.1 million increase in tooling revenues; a $38.9 million benefit from the impact of foreign exchange on the translation of Euro denominated production revenue; and year-over-year increased production revenues in the Company's plant in Slovakia, which continues to ramp up and launch its backlog of business.

Revenues for the six months ended June 30, 2014 in the Company's Rest of World operating segment, currently comprised of the Brazilian operations of Martinrea Honsel and a facility in China in its early stages, decreased by $1.5 million or 4.9% to $29.8 million from $31.3 million for the six months ended June 30, 2013. The decrease can be attributed to a year-over-year decrease in OEM light and medium-heavy vehicle production in Brazil, a $0.2 million decrease in tooling revenues and the translation of Brazilian Real denominated production revenue which had a negative impact on revenue for the six months ended June 30, 2014 of $1.0 million as compared to the same period of 2013, partially offset by the launch of the Company's first product in China for the Ford CD4 program, which began to ramp up at the end of the second quarter of 2013.

Overall tooling revenues decreased by $7.0 million from $95.1 million for the first six months of 2013 to $88.1 million for the first six months of 2014.

GROSS MARGIN


Three months ended June 30, 2014 to three months ended June 30, 2013        
comparison                                                                  
                                                                            
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                    Three months       Three months                         
                           ended              ended                         
                   June 30, 2014      June 30, 2013     $ Change   % Change 
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Gross margin    $         95,863   $         91,183        4,680        5.1%
% of revenue                10.3%              11.0%                        
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The gross margin percentage for the second quarter of 2014 of 10.3% decreased as a percentage of revenue by 0.7% as compared to the gross margin percentage for the second quarter of 2013 of 11.0%. The decrease in gross margin as a percentage of revenue was generally due to:


--  an increase in tooling revenues which typically earn low or no margins
    for the Company; 
--  an increase in integrator or assembly work which typically generates
    lower margins as a percentage of revenue, although return on capital
    tends to be higher; 
--  program specific launch costs related to new programs that recently
    launched or are set to launch and ramp up over the next six months
    including the Ford Transit, Ford 2.3L aluminum engine block, Chrysler
    200 and Lincoln MKC; and 
--  operational inefficiencies at certain operating facilities, in
    particular, Hopkinsville, Kentucky (see below). 

These factors were partially offset by:


--  higher capacity utilization from an overall increase in year-over-year
    production revenues including the launch of new programs subsequent to
    or during the second quarter 2013 (as noted above under "Revenue"); 
--  productivity and efficiency improvements at certain operating
    facilities, in particular, the Martinrea Honsel operations in Germany;
    and 
--  improved pricing on certain long-term customer contracts in the
    operations of Martinrea Honsel. 

The performance of the Company's operating facility in Hopkinsville, Kentucky continued to be impacted by launch costs and other operational expenses stemming from the issues experienced by the facility during the fourth quarter of 2013. The issues were rooted in serious equipment failures on two of the plant's large tonnage presses which has resulted in incremental premium costs as the facility deals with new programs, customer-requested engineering changes, which have impacted productivity, and the overall ramp-up in production volumes being experienced in the automotive industry. Since the equipment failures at the end of 2013, the presses have been operational but have not been performing at optimal levels. Upgrades to the presses were successfully completed during the July 2014 summer shutdown in order to reduce the risk of any further failures and improve the performance of the presses. Further less substantial improvements are planned for the December holiday shutdown. Progress is being made at improving efficiencies at this facility and costs are expected to subside, and margins improve, as operational improvements continue to be made.

In addition to the expected productivity and efficiency improvements at certain operating facilities, in particular in Hopkinsville, Kentucky (as noted above), gross margin is expected to be positively impacted by incremental new business as the Company continues to work through the launch of a significant backlog of new business over the next 36 months including the following awarded programs in addition to the programs referred to above: the next wave of Ford CD4 in Europe and North America (Mondeo and Edge), GM Omega aluminum engine cradle (Cadillac), GM 31XX (Traverse, SRX), Jaguar LandRover aluminum swivel bearing, Nissan aluminum I4 engine block, Daimler aluminum transmission casing and incremental volume on Daimler's V8 AMG aluminum engine block.


Six months ended June 30, 2014 to six months ended June 30, 2013 comparison 
                                                                           
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                         Six months     Six months                         
                              ended          ended                         
                           June 30,       June 30,                         
                               2014           2013     $ Change   % Change 
---------------------------------------------------------------------------
Gross margin           $    183,342   $    166,898       16,444        9.9%
% of revenue                   10.2%          10.5%                        
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The gross margin percentage for the six months ended June 30, 2014 of 10.2% decreased as a percentage of revenue by 0.3% as compared to the gross margin percentage for the six months ended June 30, 2013 of 10.5%. The decrease in gross margin as a percentage of revenue was generally due to:


--  an increase in integrator or assembly work which typically generates
    lower margins as a percentage of revenue, although return on capital
    tends to be higher; 
--  program specific launch costs related to new programs that recently
    launched or are set to launch and ramp up over the next six months
    including the BMW X5, Ford Transit, Ford 2.3L aluminum engine block,
    Chrysler 200 and Lincoln MKC; and 
--  operational inefficiencies at certain operating facilities, in
    particular, Hopkinsville, Kentucky (see above). 

These factors were partially offset by:


--  higher capacity utilization from an overall increase in year-over-year
    production revenues including the launch of new programs subsequent to
    or during the first half of 2013 (as noted above under "Revenue"); 
--  productivity and efficiency improvements at certain operating
    facilities, in particular the Martinrea Honsel operations in Germany; 
--  improved pricing on certain long-term customer contracts in the
    operations of Martinrea Honsel; and 
--  a decrease in tooling revenues which typically earn low or no margins
    for the Company. 

ADJUSTMENTS TO NET EARNINGS

(ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY)

Adjusted net earnings exclude certain unusual items, as set out in the following tables and described in the notes thereto. Management uses adjusted net earnings as a measurement of operating performance of the Company and believes that, in conjunction with IFRS measures, it provides useful information about the financial performance and condition of the Company.

TABLE A


----------------------------------------------------------------------------
                                    Three months    Three months            
                                           ended           ended            
                                   June 30, 2014   June 30, 2013    (a)-(b) 
                                  ------------------------------            
                                             (a)             (b)     Change 
----------------------------------------------------------------------------
                                                                            
NET EARNINGS (A)                         $23,308         $27,514    $(4,206)
                                                                            
Add back - Unusual Items:                                                   
                                                                            
External legal and forensic                                                 
 accounting costs related to                                                
 litigation (1)                              408               -        408 
                                                                            
----------------------------------------------------------------------------
TOTAL UNUSUAL ITEMS BEFORE TAX              $408               -       $408 
                                                                            
Tax impact of above item                    (102)              -       (102)
                                                                            
----------------------------------------------------------------------------
                                                                            
TOTAL UNUSUAL ITEMS AFTER TAX (B)           $306               -       $306 
----------------------------------------------------------------------------
                                                                            
ADJUSTED NET EARNINGS (A + B)            $23,614         $27,514    $(3,900)
----------------------------------------------------------------------------
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Number of Shares Outstanding -                                              
 Basic ('000)                             84,498          83,984            
Adjusted Basic Net Earnings Per                                             
 Share                                     $0.28           $0.33            
Number of Shares Outstanding -                                              
 Diluted ('000)                           85,609          84,591            
Adjusted Diluted Net Earnings Per                                           
 Share                                     $0.28           $0.33            
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TABLE B


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                                      Six months      Six months            
                                           ended           ended            
                                   June 30, 2014   June 30, 2013      (a-b) 
                                 -------------------------------            
                                             (a)             (b)     Change 
----------------------------------------------------------------------------
                                                                            
NET EARNINGS (A)                         $39,999         $47,402    $(7,403)
                                                                            
Add back - Unusual Items:                                                   
                                                                            
External legal and forensic                                                 
 accounting costs related to                                                
 litigation (1)                            1,561               -      1,561 
                                                                            
----------------------------------------------------------------------------
                                                                            
TOTAL UNUSUAL ITEMS BEFORE TAX            $1,561               -     $1,561 
                                                                            
Tax impact of above items                   (390)              -       (390)
                                                                            
----------------------------------------------------------------------------
                                                                            
TOTAL UNUSUAL ITEMS AFTER TAX (B)         $1,171               -     $1,171 
----------------------------------------------------------------------------
                                                                            
ADJUSTED NET EARNINGS (A + B)            $41,170         $47,402    $(6,232)
----------------------------------------------------------------------------
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Number of Shares Outstanding -                                              
 Basic ('000)                             84,489          83,876            
Adjusted Basic Net Earnings Per                                             
 Share                                     $0.49           $0.57            
Number of Shares Outstanding -                                              
 Diluted ('000)                           85,317          84,514            
Adjusted Diluted Net Earnings Per                                           
 Share                                     $0.48           $0.56            
----------------------------------------------------------------------------
(1) External Legal and Forensic Accounting Costs Related to Litigation      
                                                                            
    The costs added back for adjusted net earnings purposes reflects the    
    legal and forensic accounting costs not covered by insurance (recorded  
    as SG&A expense) incurred by the Company in relation to specific        
    litigation matters out of the ordinary course of business as outlined in
    the Company's MD&A and Annual Information Form for the year ended       
    December 31, 2013. Further amounts related to the costs expensed to date
    may be recovered from the Company's insurance providers upon completion 
    of their review of the costs incurred.                                  
                                                                            
NET EARNINGS                                                                
(ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY)                             
                                                                            
Three months ended June 30, 2014 to three months ended June 30, 2013        
comparison                                                                  
                                                                            
----------------------------------------------------------------------------
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                                    Three          Three                    
                             months ended   months ended                    
                                 June 30,       June 30,                    
                                     2014           2013 $ Change % Change  
----------------------------------------------------------------------------
Net Earnings                $      23,308  $      27,514   (4,206)   (15.3%)
Adjusted Net Earnings       $      23,614  $      27,514   (3,900)   (14.2%)
Net Earnings per common                                                     
 share                                                                      
  Basic                     $        0.28  $        0.33                    
  Diluted                   $        0.27  $        0.33                    
Adjusted Net Earnings per                                                   
 common share                                                               
  Basic                     $        0.28  $        0.33                    
  Diluted                   $        0.28  $        0.33                    
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Net earnings, before adjustments, for the second quarter of 2014 decreased by $4.2 million to $23.3 million from $27.5 million for the second quarter of 2013. Excluding $0.4 million in external legal and forensic accounting costs related to litigation incurred during the second quarter of 2014, as explained in Table A under "Adjustments to Net Earnings", the net earnings for the second quarter of 2014 decreased to $23.6 million or $0.28 per share, on a basic and diluted basis, in comparison to adjusted net earnings of $27.5 million or $0.33 per share, on a basic and diluted basis, for the second quarter of 2013.

The net earnings for the second quarter of 2014, as compared to the second quarter of 2013, were negatively impacted by the following:


--  program specific launch costs related to new programs that recently
    launched or are set to launch and ramp up over the next six months
    including the Ford Transit, Ford 2.3 L aluminum engine block, Chrysler
    200 and the Lincoln MKC; 
--  lower margins as a result of operational inefficiencies at certain
    operating facilities, in particular, Hopkinsville, Kentucky (as
    discussed above); and 
--  year-over-year increases in SG&A expense as previously discussed,
    research and development expense predominantly as a result of increased
    amortization of development costs, and finance expense related to
    increased levels of debt primarily used to sustain the increased level
    of capital expenditures related to new program launches. 

These factors were partially offset by the following:


--  higher margins from an overall increase in year-over-year production
    revenues including the launch of new programs subsequent to or during
    the second quarter 2013; 
--  productivity and efficiency improvements at certain operating
    facilities, in particular the Martinrea Honsel operations in Germany; 
--  improved pricing on certain long-term customer contracts in Martinrea
    Honsel; and 
--  a lower effective tax rate due generally to the mix of earnings and the
    utilization of tax losses in Martinrea Honsel not previously benefitted.

The contribution of Martinrea Honsel to net earnings for the second quarter of 2014, after factoring in the interest costs incurred by Martinrea International on the debt issued to finance the acquisition and operations of Martinrea Honsel, increased to $0.08 per share from $0.06 per share for the second quarter of 2013. The increase was generally due to ongoing productivity, efficiency improvements at certain facilities, in particular in Germany, improved pricing on certain long term customer contracts and a lower effective tax rate resulting from the utilization of tax losses not previously benefited, partially offset by program specific launch costs for upcoming new programs and a lower contribution from the Brazilian operations as a result of overall lower production volumes.


Six months ended June 30, 2014 to six months ended June 30, 2013 comparison 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                           Six months     Six months                        
                                ended          ended                        
                             June 30,       June 30,                        
                                 2014           2013   $ Change   % Change  
----------------------------------------------------------------------------
Net Earnings            $      39,999  $      47,402     (7,403)     (15.6%)
Adjusted Net Earnings   $      41,170  $      47,402     (6,232)     (13.1%)
Net Earnings per common                                                     
 share                                                                      
  Basic                 $        0.47  $        0.57                        
  Diluted               $        0.47  $        0.56                        
Adjusted Net Earnings                                                       
 per common share                                                           
  Basic                 $        0.49  $        0.57                        
  Diluted               $        0.48  $        0.56                        
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Net earnings, before adjustments, for the six months ended June 30, 2014 decreased by $7.4 million to $40.0 million from $47.4 million for the six months ended June 30, 2013. Excluding $1.6 million in external legal and forensic accounting costs related to litigation incurred during the six months ended June 30, 2014, as explained in Table B under "Adjustments to Net Income", the net earnings for the six months ended June 30, 2014 decreased to $41.2 million or $0.49 per share, on a basic basis, and $0.48 per share on a diluted basis, from $47.4 million or $0.57 per share, on a basic basis, and $0.56 on a diluted basis, for the six months ended June 30, 2013.

The net earnings for the six months ended June 30, 2014, as compared to the six months ended June 30, 2013, were negatively impacted by the following:


--  program specific launch costs related to new programs that recently
    launched or are set to launch and ramp up over the next six months
    including the Ford Transit, Ford 2.3 L aluminum engine block, Chrysler
    200 and the Lincoln MKC; 
--  lower margins as a result of operational inefficiencies at certain
    operating facilities, in particular, Hopkinsville, Kentucky (as
    discussed above); and 
--  year-over-year increases in SG&A expense as previously discussed,
    research and development expenses predominantly as a result of increased
    amortization of development costs, finance expense related to increased
    levels of debt primarily used to sustain the increased level of capital
    expenditures related to new program launches and a decrease in other
    financial income predominantly resulting from foreign exchange
    fluctuations. 

These factors were partially offset by the following:


--  higher margins from an overall increase in year-over-year production
    revenues including the launch of new programs subsequent to or during
    the first half of 2013; 
--  productivity and efficiency improvements at certain operating
    facilities, in particular the Martinrea Honsel operations in Germany; 
--  improved pricing on certain long-term customer contracts in Martinrea
    Honsel; and 
--  a lower effective tax rate due generally to the mix of earnings and the
    utilization of tax losses in Martinrea Honsel not previously benefitted.

The contribution of Martinrea Honsel to net earnings for the six months ended June 30, 2014, after factoring in the interest costs incurred by Martinrea International on the debt issued to finance the acquisition and operations of Martinrea Honsel, increased to $0.20 per share from $0.10 per share for the six months ended June 30, 2013. The increase was generally due to the addition of new incremental aluminum business with Jaguar LandRover, generally higher production volumes in Europe, ongoing productivity, and efficiency improvements at certain facilities, in particular in Germany, improved pricing on certain long term customer contracts and a lower effective tax rate resulting from the utilization of tax losses not previously benefitted, partially offset by program specific launch costs for upcoming new programs and a lower contribution from the Brazilian operations as a result of lower production volumes.

ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT


Three months ended June 30, 2014 to three months ended June 30, 2013        
comparison                                                                  
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                         Three months   Three months                        
                                ended          ended                        
                             June 30,       June 30,                        
                                 2014           2013    $ Change   % Change 
----------------------------------------------------------------------------
Additions to Property,                                                      
 Plant and Equipment    $      47,311  $      39,791       7,520       18.9%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Additions to property, plant and equipment increased by $7.5 million to $47.3 million in the second quarter of 2014 from $39.8 million in the second quarter of 2013. Additions as a percentage of revenues remained relatively consistent year-over-year at 5.1% for the second quarter of 2014 compared to 4.8% for the comparative period of 2013. While capital expenditures are made to refurbish or replace assets consumed in the normal course of business and for productivity improvements, a large portion of the investment in the second quarter of 2014 continued to be for manufacturing equipment for programs that recently launched or will be launching over the next 24 months.


Six months ended June 30, 2014 to six months ended June 30, 2013 comparison 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                           Six months     Six months                        
                                ended          ended                        
                             June 30,       June 30,                        
                                 2014           2013     Change   % Change  
----------------------------------------------------------------------------
Additions to Property,                                                      
 Plant and Equipment    $      84,362  $      96,496    (12,134)     (12.6%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Additions to property, plant and equipment decreased by $12.1 million to $84.4 million for the six months ended June 30, 2014 from $96.5 million for the six months ended June 30, 2013. Additions as a percentage of revenues decreased year-over-year to 4.7% for the six months ended June 30, 2014 compared to 6.0% for the comparative period of 2013. Despite the decrease, while capital expenditures are made to refurbish or replace assets consumed in the normal course of business and for productivity improvements, a large portion of the investment in the first half of 2014 continued to be for manufacturing equipment for programs that recently launched or will be launching over the next 24 months.

DIVIDEND

A cash dividend of $0.03 per share has been declared by the Board of Directors payable to shareholders of record on September 30, 2014 on or about October 15, 2014.

CONFERENCE CALL DETAILS

A conference call to discuss those results will be held on Friday, August 15, 2014 at 8:00 a.m. (Toronto time) which can be accessed by dialing (416) 340-8410 or toll free (866) 225-2055. Please call 10 minutes prior to the start of the conference call.

If you have any teleconferencing questions, please call Andre La Rosa at (416) 749-0314.

There will also be a rebroadcast of the call available by dialing (905) 694-9451 or toll free (800) 408-3053 (conference id - 4771486#). The rebroadcast will be available until August 29, 2014.

FORWARD-LOOKING INFORMATION

Special Note Regarding Forward-Looking Statements

This Press Release contains forward-looking statements within the meaning of applicable Canadian securities laws including related to the expectations and guidance as to revenue and gross margin percentage (and earnings per share), expansion of or improvements in gross margin, including due to positive impact from launches, statements as to the growth of the Company, opening of facilities and pursuit of its strategies, the launching of new metal forming and fluid systems programs including expectations as to the financial impact of launches, the Company's expectations as to the contribution of Martinrea Honsel to the Company's business, statements as to the progress and expectations of operational and productivity improvements and operational and productivity efficiencies, the Company's expectations regarding the future amount and type of restructuring expenses to be expensed, statements as to the reduction of costs, including the expectation of a reduction in costs and inefficiencies and stabilization of and operational improvements at the Hopkinsville plant and expectations as to the continued operation of and successful upgrades to the presses, the Company's views on the long term outlook of the automotive industry and economic recovery, the Company's ability to capitalize on opportunities in the automotive industry and the successful integration of acquisitions, statements as to the recovery of litigation related expenses from insurance providers, and as well as other forward-looking statements. The words "continue", "expect", "anticipate", "estimate", "may", "will", "should", "views", "intend", "believe", "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, some of which are discussed in detail in the Company's Annual Information Form and other public filings which can be found at www.sedar.com:


--  North American and global economic and political conditions; 
--  the highly cyclical nature of the automotive industry and the industry's
    dependence on consumer spending and general economic conditions; 
--  the Company's dependence on a limited number of significant customers; 
--  financial viability of suppliers; 
--  the Company's reliance on critical suppliers and on suppliers for
    components and the risk that suppliers will not be able to supply
    components on a timely basis or in sufficient quantities; 
--  competition; 
--  the increasing pressure on the Company to absorb costs related to
    product design and development, engineering, program management,
    prototypes, validation and tooling; 
--  increased pricing of raw materials; 
--  outsourcing and insourcing trends; 
--  the risk of increased costs associated with product warranty and recalls
    together with the associated liability; 
--  the Company's ability to enhance operations and manufacturing
    techniques; 
--  dependence on key personnel; 
--  limited financial resources; 
--  risks associated with the integration of acquisitions; 
--  costs associated with rationalization of production facilities; 
--  launch costs; 
--  the potential volatility of the Company's share price; 
--  changes in governmental regulations or laws including any changes to the
    North American Free Trade Agreement; 
--  labour disputes; 
--  litigation; 
--  currency risk; 
--  fluctuations in operating results; 
--  internal controls over financial reporting and disclosure controls and
    procedures; 
--  environmental regulation; 
--  a shift away from technologies in which the Company is investing; 
--  competition with low cost countries; 
--  the Company's ability to shift its manufacturing footprint to take
    advantage of opportunities in emerging markets; 
--  risks of conducting business in foreign countries, including China,
    Brazil and other growing markets; 
--  potential tax exposure; 
--  a change in the Company's mix of earnings between jurisdictions with
    lower tax rates and those with higher tax rates, as well as the
    Company's ability to fully benefit from tax losses; 
--  under-funding of pension plans; and 
--  the cost of post-employment benefits. 

These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol "MRE".


Martinrea International Inc.                                                
Interim Condensed Consolidated Balance Sheets                               
(in thousands of Canadian dollars) (unaudited)                              
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                    June 30,       December 
                                          Note          2014       31, 2013 
----------------------------------------------------------------------------
ASSETS                                                                      
Cash and cash equivalents                       $     38,460   $     56,224 
Trade and other receivables                  4       603,308        541,598 
Inventories                                  5       325,088        302,810 
Prepaid expenses and deposits                         20,307         13,128 
Income taxes recoverable                               2,624          3,727 
----------------------------------------------------------------------------
TOTAL CURRENT ASSETS                                 989,787        917,487 
----------------------------------------------------------------------------
Property, plant and equipment                6       880,580        847,548 
Deferred income tax assets                           113,635        100,156 
Intangible assets                            7        63,805         59,640 
----------------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS                           1,058,020      1,007,344 
----------------------------------------------------------------------------
TOTAL ASSETS                                    $  2,047,807   $  1,924,831 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES                                                                 
Trade and other payables                     8  $    682,189   $    597,591 
Provisions                                   9         4,550          6,362 
Income taxes payable                                  26,812         22,530 
Current portion of long-term debt           10        48,175         37,276 
----------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES                            761,726        663,759 
----------------------------------------------------------------------------
Long-term debt                              10       403,506        434,501 
Pension and other post-retirement benefits            51,619         45,270 
Deferred income tax liabilities                       78,286         73,051 
Other financial liability                    3       232,800        154,239 
----------------------------------------------------------------------------
TOTAL NON-CURRENT LIABILITIES                        766,211        707,061 
----------------------------------------------------------------------------
TOTAL LIABILITIES                               $  1,527,937   $  1,370,820 
----------------------------------------------------------------------------
                                                                            
EQUITY                                                                      
Capital stock                               12       690,468        689,975 
Contributed surplus                                   45,384         44,853 
Other equity                                 3      (232,800)      (154,239)
Accumulated other comprehensive income                23,231         26,085 
Accumulated deficit                                 (111,378)      (142,376)
----------------------------------------------------------------------------
TOTAL EQUITY ATTRIBUTABLE TO EQUITY                                         
 HOLDERS OF THE COMPANY                              414,905        464,298 
Non-controlling interest                             104,965         89,713 
----------------------------------------------------------------------------
TOTAL EQUITY                                         519,870        554,011 
----------------------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY                    $  2,047,807   $  1,924,831 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Subsequent events (notes 3 and 10)                                          
Contingencies (note 16)                                                     
                                                                            
See accompanying notes to the interim condensed consolidated financial      
statements.                                                                 

On behalf of the Board:

Robert Wildeboer, Director

Scott Balfour, Director


Martinrea International Inc.                                                
Interim Condensed Consolidated Statements of Operations                     
(in thousands of Canadian dollars, except per share amounts) (unaudited)    
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               Three        Three                           
                              months       months   Six months   Six months 
                               ended        ended        ended        ended 
                            June 30,     June 30,     June 30,     June 30, 
                  Note          2014         2013         2014         2013 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
SALES                   $    930,915 $    826,274 $  1,795,408 $  1,595,396 
----------------------------------------------------------------------------
                                                                            
Cost of sales                                                               
 (excluding                                                                 
 depreciation of                                                            
 property, plant                                                            
 and equipment)             (809,766)    (712,349)  (1,562,649)  (1,384,681)
Depreciation of                                                             
 property, plant                                                            
 and equipment                                                              
 (production)                (25,286)     (22,742)     (49,417)     (43,817)
----------------------------------------------------------------------------
Total cost of                                                               
 sales                      (835,052)    (735,091)  (1,612,066)  (1,428,498)
----------------------------------------------------------------------------
GROSS MARGIN                  95,863       91,183      183,342      166,898 
----------------------------------------------------------------------------
                                                                            
Research and                                                                
 development costs            (4,875)      (3,567)      (9,517)      (7,735)
Selling, general                                                            
 and                                                                        
 administrative              (45,594)     (38,771)     (88,925)     (73,574)
Depreciation of                                                             
 property, plant                                                            
 and equipment                                                              
 (non-production)             (1,714)      (1,673)      (3,178)      (3,147)
Amortization of                                                             
 customer                                                                   
 contracts and                                                              
 relationships                  (568)        (493)        (911)        (979)
Gain (loss) on                                                              
 disposal of                                                                
 property, plant                                                            
 and equipment                    17          263         (123)         152 
----------------------------------------------------------------------------
OPERATING INCOME              43,129       46,942       80,688       81,615 
----------------------------------------------------------------------------
                                                                            
Finance costs                 (5,330)      (5,192)     (10,509)      (9,875)
Other finance                                                               
 income                          231          196            9        1,179 
----------------------------------------------------------------------------
INCOME BEFORE                                                               
 INCOME TAXES                 38,030       41,946       70,188       72,919 
                                                                            
Income tax expense  11        (8,404)      (9,835)     (13,903)     (17,303)
----------------------------------------------------------------------------
NET INCOME FOR THE                                                          
 PERIOD                 $     29,626 $     32,111 $     56,285 $     55,616 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Non-controlling                                                             
 interest                     (6,318)      (4,597)     (16,286)      (8,214)
----------------------------------------------------------------------------
NET INCOME                                                                  
 ATTRIBUTABLE TO                                                            
 EQUITY HOLDERS OF                                                          
 THE COMPANY            $     23,308 $     27,514 $     39,999 $     47,402 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic earnings per                                                          
 share              13  $       0.28 $       0.33 $       0.47 $       0.57 
Diluted earnings                                                            
 per share          13  $       0.27 $       0.33 $       0.47 $       0.56 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
See accompanying notes to the interim condensed consolidated financial      
statements.                                                                 
                                                                            
Martinrea International Inc.                                                
Interim Condensed Consolidated Statements of Comprehensive Income           
(in thousands of Canadian dollars) (unaudited)                              
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                            Three                                           
                           months   Three months   Six months     Six months
                            ended          ended        ended          ended
                         June 30,       June 30,     June 30,       June 30,
                             2014           2013         2014           2013
----------------------------------------------------------------------------
                                                                            
NET INCOME FOR THE                                                          
 PERIOD              $     29,626  $      32,111 $     56,285  $      55,616
Other comprehensive                                                         
 income (loss), net                                                         
 of tax:                                                                    
  Items that may be                                                         
   reclassified to                                                          
   net income                                                               
  Foreign currency                                                          
   translation                                                              
   differences for                                                          
   foreign                                                                  
   operations             (34,741)        24,164       (3,888)        36,634
  Items that will                                                           
   not be                                                                   
   reclassified to                                                          
   net income                                                               
  Actuarial gains                                                           
   (losses) from the                                                        
   remeasurement of                                                         
   defined benefit                                                          
   plans                     (735)         4,417       (3,930)         5,528
----------------------------------------------------------------------------
Other comprehensive                                                         
 income (loss), net                                                         
 of tax                   (35,476)        28,581       (7,818)        42,162
----------------------------------------------------------------------------
TOTAL COMPREHENSIVE                                                         
 INCOME (LOSS) FOR                                                          
 THE PERIOD          $     (5,850) $      60,692 $     48,467  $      97,778
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Attributable to:                                                            
  Equity holders of                                                         
   the Company       $     (6,648) $      58,667 $     33,215  $      90,753
  Non-controlling                                                           
   interest                   798          2,025       15,252          7,025
----------------------------------------------------------------------------
TOTAL COMPREHENSIVE                                                         
 INCOME (LOSS) FOR                                                          
 THE PERIOD          $     (5,850) $      60,692 $     48,467  $      97,778
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
See accompanying notes to the interim condensed consolidated financial      
statements.                                                                 
                                                                            
Martinrea International Inc.                                                
Interim Condensed Consolidated Statements of Changes in Equity              
(in thousands of Canadian dollars) (unaudited)                              
                                                                            
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                      Equity attributable to equity holders of the Company
                      ----------------------------------------------------
                                                                          
                                                                          
                                                               Cumulative 
                           Capital  Contributed       Other   translation 
                             stock      surplus      equity       account 
--------------------------------------------------------------------------
Balance at December                                                       
 31, 2012              $   675,606 $     46,897  $  (87,100) $    (22,001)
--------------------------------------------------------------------------
Net income for the                                                        
 period                          -            -           -             - 
Compensation expense                                                      
 related to stock                                                         
 options                         -          905           -             - 
Purchase of non-                                                          
 controlling interest                                                     
 (note 2)                        -            -           -             - 
Dividends ($0.03 per                                                      
 share)                          -            -           -             - 
Change in fair value                                                      
 of put option granted                                                    
 to non-controlling                                                       
 interest                        -            -     (22,897)            - 
Exercise of employee                                                      
 stock options              10,122       (2,497)          -             - 
Other comprehensive                                                       
 income, net of tax                                                       
  Actuarial gains from                                                    
   the remeasurement                                                      
   of defined benefit                                                     
   plans                         -            -           -             - 
  Foreign currency                                                        
   translation                                                            
   differences                   -            -           -        37,823 
--------------------------------------------------------------------------
Balance at June 30,                                                       
 2013                      685,728       45,305    (109,997)       15,822 
--------------------------------------------------------------------------
Net income (loss) for                                                     
 the period                      -            -           -             - 
Compensation expense                                                      
 related to stock                                                         
 options                         -          707           -             - 
Dividends ($0.06 per                                                      
 share)                          -            -           -             - 
Change in fair value                                                      
 of put option granted                                                    
 to non-controlling                                                       
 interest                        -            -     (44,242)            - 
Exercise of employee                                                      
 stock options               4,247       (1,159)          -             - 
Other comprehensive                                                       
 income, net of tax                                                       
  Actuarial gains from                                                    
   the remeasurement                                                      
   of defined benefit                                                     
   plans                         -            -           -             - 
  Foreign currency                                                        
   translation                                                            
   differences                   -            -           -        10,263 
--------------------------------------------------------------------------
Balance at December                                                       
 31, 2013                  689,975       44,853    (154,239)       26,085 
--------------------------------------------------------------------------
Net income for the                                                        
 period                          -            -           -             - 
Compensation expense                                                      
 related to stock                                                         
 options                         -          665           -             - 
Dividends ($0.06 per                                                      
 share)                          -            -           -             - 
Change in fair value                                                      
 of put option granted                                                    
 to non-controlling                                                       
 interest                        -            -     (78,561)            - 
Exercise of employee                                                      
 stock options                 493         (134)          -             - 
Other comprehensive                                                       
 income, net of tax                                                       
  Actuarial losses                                                        
   from the                                                               
   remeasurement of                                                       
   defined benefit                                                        
   plans                         -            -           -             - 
  Foreign currency                                                        
   translation                                                            
   differences                   -            -           -        (2,854)
--------------------------------------------------------------------------
Balance at June 30,                                                       
 2014                  $   690,468 $     45,384  $ (232,800) $     23,231 
--------------------------------------------------------------------------
--------------------------------------------------------------------------

--------------------------------------------------------------------------
--------------------------------------------------------------------------
                         Equity attributable to                           
                          equity holders of the                           
                                        Company                           
                      -------------------------                           
                                                                          
                                                                          
                                                         Non-             
                        Accumulated               controlling       Total 
                            deficit       Total      interest      equity 
--------------------------------------------------------------------------
Balance at December                                                       
 31, 2012              $   (155,721) $  457,681  $     66,240  $  523,921 
--------------------------------------------------------------------------
Net income for the                                                        
 period                      47,402      47,402         8,214      55,616 
Compensation expense                                                      
 related to stock                                                         
 options                          -         905             -         905 
Purchase of non-                                                          
 controlling interest                                                     
 (note 2)                    (2,880)     (2,880)       (1,928)     (4,808)
Dividends ($0.03 per                                                      
 share)                      (2,519)     (2,519)            -      (2,519)
Change in fair value                                                      
 of put option granted                                                    
 to non-controlling                                                       
 interest                         -     (22,897)            -     (22,897)
Exercise of employee                                                      
 stock options                    -       7,625             -       7,625 
Other comprehensive                                                       
 income, net of tax                                                       
  Actuarial gains from                                                    
   the remeasurement                                                      
   of defined benefit                                                     
   plans                      5,528       5,528             -       5,528 
  Foreign currency                                                        
   translation                                                            
   differences                    -      37,823        (1,189)     36,634 
--------------------------------------------------------------------------
Balance at June 30,                                                       
 2013                      (108,190)    528,668        71,337     600,005 
--------------------------------------------------------------------------
Net income (loss) for                                                     
 the period                 (30,452)    (30,452)       12,765     (17,687)
Compensation expense                                                      
 related to stock                                                         
 options                          -         707             -         707 
Dividends ($0.06 per                                                      
 share)                      (5,069)     (5,069)            -      (5,069)
Change in fair value                                                      
 of put option granted                                                    
 to non-controlling                                                       
 interest                         -     (44,242)            -     (44,242)
Exercise of employee                                                      
 stock options                    -       3,088             -       3,088 
Other comprehensive                                                       
 income, net of tax                                                       
  Actuarial gains from                                                    
   the remeasurement                                                      
   of defined benefit                                                     
   plans                      1,335       1,335             -       1,335 
  Foreign currency                                                        
   translation                                                            
   differences                    -      10,263         5,611      15,874 
--------------------------------------------------------------------------
Balance at December                                                       
 31, 2013                  (142,376)    464,298        89,713     554,011 
--------------------------------------------------------------------------
Net income for the                                                        
 period                      39,999      39,999        16,286      56,285 
Compensation expense                                                      
 related to stock                                                         
 options                          -         665             -         665 
Dividends ($0.06 per                                                      
 share)                      (5,071)     (5,071)            -      (5,071)
Change in fair value                                                      
 of put option granted                                                    
 to non-controlling                                                       
 interest                         -     (78,561)            -     (78,561)
Exercise of employee                                                      
 stock options                    -         359             -         359 
Other comprehensive                                                       
 income, net of tax                                                       
  Actuarial losses                                                        
   from the                                                               
   remeasurement of                                                       
   defined benefit                                                        
   plans                     (3,930)     (3,930)            -      (3,930)
  Foreign currency                                                        
   translation                                                            
   differences                    -      (2,854)       (1,034)     (3,888)
--------------------------------------------------------------------------
Balance at June 30,                                                       
 2014                  $   (111,378) $  414,905  $    104,965  $  519,870 
--------------------------------------------------------------------------
--------------------------------------------------------------------------
See accompanying notes to the interim condensed consolidated financial      
statements.                                                                 
                                                                            
Martinrea International Inc.                                                
Interim Condensed Consolidated Statements of Cash Flows                     
(in thousands of Canadian dollars) (unaudited)                              
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                           Three         Three                             
                          months        months    Six months    Six months 
                           ended         ended         ended         ended 
                        June 30,      June 30,      June 30,      June 30, 
                            2014          2013          2014          2013 
---------------------------------------------------------------------------
CASH PROVIDED BY                                                           
 (USED IN):                                                                
OPERATING                                                                  
 ACTIVITIES:                                                               
Net Income for the                                                         
 period             $     29,626  $     32,111  $     56,285  $     55,616 
Adjustments for:                                                           
  Depreciation of                                                          
   property, plant                                                         
   and equipment          27,000        24,415        52,595        46,964 
  Amortization of                                                          
   customer                                                                
   contracts and                                                           
   relationships             568           493           911           979 
  Amortization of                                                          
   development costs       2,162         1,622         4,266         3,167 
  Accretion of                                                             
   interest on                                                             
   promissory note             -           (30)            -           (60)
  Unrealized losses                                                        
   / (gains) on                                                            
   foreign exchange                                                        
   forward contracts      (1,344)        1,070         1,191           842 
  Finance costs            5,330         5,192        10,509         9,875 
  Income tax expense       8,404         9,835        13,903        17,303 
  Loss (gain) on                                                           
   disposal of                                                             
   property, plant                                                         
   and equipment             (17)         (263)          123          (152)
  Stock-based                                                              
   compensation              555           590           665           905 
  Pension and other                                                        
   post-retirement                                                         
   benefits expense        1,265         1,202         2,432         2,404 
  Contributions made                                                       
   to pension and                                                          
   other post-                                                             
   retirement                                                              
   benefits                 (764)       (2,759)       (1,792)       (5,227)
---------------------------------------------------------------------------
                          72,785        73,478       141,088       132,616 
Changes in non-cash                                                        
 working capital                                                           
 items:                                                                    
  Trade and other                                                          
   receivables            32,837        (6,602)      (62,654)      (95,127)
  Inventories             (6,043)       (7,904)      (22,466)       (5,061)
  Prepaid expenses                                                         
   and deposits           (6,068)       (2,406)       (7,179)        1,074 
  Trade, other                                                             
   payables and                                                            
   provisions             20,998         4,062        90,429        40,989 
---------------------------------------------------------------------------
                         114,509        60,628       139,218        74,491 
  Interest paid                                                            
   (excluding                                                              
   capitalized                                                             
   interest)              (4,873)       (4,259)       (9,585)       (7,990)
  Income taxes paid       (2,787)      (10,429)      (15,029)      (15,170)
---------------------------------------------------------------------------
NET CASH PROVIDED BY                                                       
 OPERATING                                                                 
 ACTIVITIES         $    106,849  $     45,940  $    114,604  $     51,331 
---------------------------------------------------------------------------
                                                                           
FINANCING                                                                  
 ACTIVITIES:                                                               
  Dividends paid          (2,536)            -        (5,071)            - 
  Increase in long-                                                        
   term debt                   -         4,920        36,953        56,418 
  Repayment of long-                                                       
   term debt             (48,700)       (8,977)      (58,891)      (14,833)
  Exercise of                                                              
   employee stock                                                          
   options                   359           508           359         7,625 
---------------------------------------------------------------------------
NET CASH PROVIDED BY                                                       
 (USED IN) FINANCING                                                       
 ACTIVITIES         $    (50,877) $     (3,549) $    (26,650) $     49,210 
---------------------------------------------------------------------------
                                                                           
INVESTING                                                                  
 ACTIVITIES:                                                               
  Purchase of                                                              
   property, plant                                                         
   and equipment(i)      (51,475)      (39,791)      (94,298)      (96,496)
  Capitalized                                                              
   development costs      (5,965)       (3,096)       (9,376)       (6,218)
  Proceeds on                                                              
   disposal of                                                             
   property, plant                                                         
   and equipment             251         1,617           844         1,645 
  Purchase of non-                                                         
   controlling                                                             
   interest (note 2)           -             -             -        (4,808)
---------------------------------------------------------------------------
NET CASH USED IN                                                           
 INVESTING                                                                 
 ACTIVITIES         $    (57,189) $    (41,270) $   (102,830) $   (105,877)
---------------------------------------------------------------------------
                                                                           
Effect of foreign                                                          
 exchange rate                                                             
 changes on cash and                                                       
 cash equivalents         (3,508)          781        (2,888)         (570)
---------------------------------------------------------------------------
                                                                           
INCREASE (DECREASE)                                                        
 IN CASH AND CASH                                                          
 EQUIVALENTS              (4,725)        1,902       (17,764)       (5,906)
CASH AND CASH                                                              
 EQUIVALENTS,                                                              
 BEGINNING OF PERIOD      43,185        21,614        56,224        29,422 
---------------------------------------------------------------------------
CASH AND CASH                                                              
 EQUIVALENTS, END OF                                                       
 PERIOD             $     38,460  $     23,516  $     38,460  $     23,516 
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                            
(i)As at June 30, 2014, $3,280 (December 31, 2013 - $13,216) of purchases of
property, plant and equipment remain unpaid.                                
                                                                            
See accompanying notes to the interim condensed consolidated financial      
statements.                                                                 

Contacts:
Fred Di Tosto, Chief Financial Officer
Martinrea International Inc.
3210 Langstaff Road
Vaughan, Ontario L4K 5B2
(416) 749-0314
(289) 982-3001 (FAX)

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@ThingsExpo Stories
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...