MARKHAM, ON, Jan. 28 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its first quarter ended December 31, 2008. In addition, the Company announced a $0.0175 dividend per share which will be paid March 31, 2009 to shareholders of record on March 16, 2009. The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.

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                                                        3 Months ended
                                                         December 31
                                                       ($000s, except
                                                      per share amounts)
                                                       2008         2007
                                                       ----         ----
Sales                                               $44,444      $47,974
Net (loss) income from continuing operations        ($2,425)      $1,364
Net loss from discontinued operations                     -         ($49)
Net (loss) income                                   ($2,425)(x)   $1,315
Basic and diluted (loss) earnings per share from
 continuing operations                               ($0.06)       $0.03
Basic and diluted earnings per share from
 discontinued operations                              $0.00        $0.00
Basic and diluted (loss) earnings per share          ($0.06)       $0.03
Common shares outstanding                        40,674,000   41,216,000
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(x)Includes $2,848 foreign exchange valuation loss

Consolidated sales from continuing operations for the quarter ended December 31, 2008 were $44.4 million compared to $48.0 million last year - a decrease of $3.6 million or 7.5%. The Casting and Extrusion segment reported a 2% increase in sales over last year to $26.8 million. Our Extrusion Die and Castool sales increased in the quarter and stronger sales in our large mould business in Canada from accelerating shipments of new moulds for the Phoenix engine block program were partially offset by weakness at our US large mould operation. Sales in the Automotive Solutions segment decreased 18.5% to $17.6 million in the quarter as all North American car manufacturers have reduced production of automobiles in response to a severe lack of consumer confidence and tighter credit requirements. Sales to our European customers were also lower in the quarter reflecting weaker releases on our major seat cover programs for Honda.

Net loss from continuing operations for the quarter was $2.4 million or $0.06 per share compared to net income of $1.4 million or $0.03 per share last year. Included in the current quarter was a foreign exchange loss of $2.8 million from a fair market valuation of the Mexican Peso collars.