News Release
For IMMEDIATE Release
Contact: Bytha Mills
INTERMET Corporation

INTERMET REPORTS FIRST-QUARTER RESULTS

Troy, Mich., April 12, 2001 – INTERMET Corporation (Nasdaq: INMT), a leading manufacturer of cast-metal automotive components, today reported first-quarter 2001 sales of $224 million, down $78 million, or 26 percent, compared with 2000 first-quarter sales of $302 million. The sales shortfall is attributed primarily to significantly reduced production volumes by North American automakers. Net income for the first quarter was $339 thousand, or $0.01 per diluted share, compared with $9.5 million, or $0.37 per diluted share, in the first quarter of 2000. INTERMET’s applicable tax rate for the quarter was high reflecting non-deductible goodwill.

Chairman and Chief Executive Officer John Doddridge said that he was pleased with INTERMET's performance in a particularly difficult first quarter. "Although North American automotive sales were reasonably good, inventory adjustments by the auto companies significantly reduced vehicle builds, particularly at our largest customer, DaimlerChrysler, which substantially reduced our sales. Additionally, with our New River Foundry capacity back on line plus the added capacity at several other plants fully operational, our composite North American plants ran at about 60-percent capacity during the first quarter. In our capital-intensive business, to achieve breakeven with these capacity-utilization levels in North America is a tribute to the efforts of the men and women of INTERMET. Fortunately, our European plants are still operating close to capacity.

"We remain hopeful that the North American slowdown will be short-lived and the second half of the year will improve; however, we continue to prepare for the worst in the event the downturn continues for a longer period of time. We have reduced our North American employment by 22 percent, while focusing on cash flow and cost reduction. In certain cases, we are advising our customers that on a number of low-margin products, there must be price increases or we will request a resourcing of their parts," Doddridge said. Earlier this week, INTERMET announced the closing of its Mexican machining plant and the downsizing of a die-casting plant in Tennessee, affecting about 120 people. As a result, approximately $20 million in sales will be moved to other INTERMET facilities or resourced. The company has taken a restructuring charge against first-quarter earnings of $0.02 per diluted share after taxes. Additionally, two other plants are under consideration for closing or downsizing later this year, according to Doddridge. "These measures will help us 'weather' the downturn, and as we substantially lower costs, it provides an opportunity to better position the company for a return to strong profit growth as we emerge from the slowdown," he said.

"Also, as we have previously disclosed, energy costs, particularly natural gas and propane, are affecting INTERMET and our entire industry. We have aggressively implemented all possible measures to reduce our energy consumption. Although prices dropped slightly in February and March from the January high, we are still trending toward $15 to $18 million in additional annual energy costs compared with last year. The application of an energy surcharge to our products thus far has been met with limited success, but we continue to believe that INTERMET and others in our industry ultimately must pass these costs on to the end customer," said Doddridge

E. R. "Skip" Autry, Jr., Vice President of Finance, said that INTERMET's $200-million term loan due in June will be replaced with another loan or loans of a similar amount. "We are currently in negotiations with lending institutions," he said. Autry also pointed out that INTERMET’s debt is up from end-of-year 2000 primarily because of $87 million cash on hand. "We also expect an insurance payment of approximately $20 million early in the second quarter, pushing our cash balance even higher. We plan to use this cash to pay down debt following the arrangement of a new loan agreement."

Doddridge said the Alexander City Foundry is now running better, but still losing money. "We continue to work with our customers to resolve many issues including pricing. There have been signs of positive movement in this regard that could rule out the planned discontinuation of certain part numbers," he said.

"For the second quarter, we should see some improvement in our sales now that OEM vehicle inventories are in better shape. During uncertain economic times, forecasting volumes is difficult at best. However, based on current auto sales trends, we anticipate revenues of $247 million for the second quarter and we should achieve earnings per share in the range of $0.14 to $0.18," said Doddridge.

INTERMET will hold a Conference Call today at 11 a.m. EDT. Investors and interested parties can listen to a live webcast by visiting www.intermet.com and clicking on the "Financial/Investor Information" link on the home page. (The webcast also will be available at www.streetfusion.com.) A replay of the web cast briefing also is expected to be available on the INTERMET web site through May 12, 2001.

With headquarters in Troy, Michigan, INTERMET Corporation is a full-service supplier of powertrain, chassis/suspension and structural components to the worldwide automotive industry. The company has more than 7,000 employees at facilities located in North America and Europe. More information about the company is available on the Internet at www.intermet.com.

This news release may include forecasts and forward-looking statements about INTERMET, its industry and the markets in which it operates. Forward-looking statements and the achievement of any forecasts or projections are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or denied. Such risks and uncertainties are fully detailed as a preface to the Management’s Discussion and Analysis of Financial Condition in the company’s 2000 Annual Report for the year ended December 31, 2000.