TMX group

TORONTO, ONTARIO -- 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 fiscal year and its fourth quarter ended December 31, 2010. Martinrea currently employs approximately 7,000 skilled and motivated people in 31 plants in Canada, the United States, Mexico and Slovakia. All amounts in this press release are in Canadian dollars, unless otherwise stated; and all tabular amounts are in thousands of Canadian dollars, except earnings per share and number of shares. Additional information about the Company, including the Company's Management Discussion and Analysis of Operating Results and Financial Position ("MD&A") and Annual Information Form for the financial year ended December 31, 2010, can be found at www.sedar.com.

The Company reports its financial results in accordance with Canadian GAAP. However, the Company has included certain non-GAAP financial measures and ratios in this analysis that the Company believes will provide useful information in measuring the financial performance and financial condition of the Company. These measures do not have a standardized meaning prescribed by Canadian GAAP 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 Canadian GAAP. Non-GAAP measures referred to in the analysis include "adjusted net earnings", "adjusted net loss", "adjusted earnings per share on a basic and diluted basis" and "adjusted loss per share on a basic and diluted basis" and are defined in tables A, B and C under "Adjustments to Net Income" of this press release.

REVENUE
	Quarter ended December 31		Year ended December 31
	2010	2009	2010	2009
Revenue	494,420	395,965	1,689,379	1,138,140

Fourth Quarter 2010 to Fourth Quarter 2009 comparison

The Company's revenue for the fourth quarter of 2010 increased by $98.4 million or 24.8% to $494.4 million as compared to $396.0 million for the fourth quarter of 2009. The increase was due to improved production volumes in North American light vehicle platforms, the launch of new programs during the fourth quarter of 2010 and an increase in tooling revenue relating to upcoming new program launches. Tooling revenue increased by $55.7 million to $72.7 million for the fourth quarter of 2010 from $17.0 million for the fourth quarter of 2009. The increase in revenue would have been higher had it not been offset by a reduction in the translation of U.S. dollar denominated revenue of approximately $15.1 million.

Fourth Quarter 2010 to Third Quarter 2010 comparison

The Company's revenue for the fourth quarter of 2010 increased by $99.3 million or 25.1% to $494.4 million as compared to $395.1 million for the third quarter of 2010. The increase can be attributed to improved production volumes in North American light vehicle platforms from the seasonal softness experienced in the third quarter, the launch of new programs during the fourth quarter of 2010 and an increase in tooling revenue relating to upcoming new program launches. Tooling revenue increased by $52.0 million to $72.7 million for the fourth quarter of 2010 from $20.7 million for the third quarter of 2010.

2010 to 2009 comparison

The Company's revenue for the year ended December 31, 2010 increased by $551.3 million or 48.4% to $1,689.4 million as compared to $1,138.1 million for the year ended December 31, 2009. Similar to the fourth quarter comparisons discussed above, the increase in revenue was primarily due to improved production volumes in North American light vehicle platforms, the launch of new programs during the year and an increase in tooling revenue relating to new program launches. Tooling revenue increased by $72.7 million to $119.5 million for the year ended December 31, 2010 as compared to $46.8 million for the year ended December 31, 2009. The increase in revenue would have been higher had it not been offset by a reduction in the translation of U.S. dollar denominated revenue of approximately $134.0 million.

GROSS MARGIN
	Quarter ended December 31		Year ended December 31
	2010	2009	2010	2009
Gross margin	45,535	28,510	159,895	75,101
% of revenue	9.2%	7.2%	9.5%	6.6%

Fourth Quarter 2010 to Fourth Quarter 2009 comparison

The gross margin percentage for the fourth quarter of 2010 of 9.2% increased by 2.0% from a gross margin percentage for the fourth quarter of 2009 of 7.2%. Excluding the one time items recorded as cost of sales explained in Table A under "Adjustments to Net Income", the gross margin percentage for the fourth quarter of 2010 increased by 0.5% to 9.6% as compared to 9.1 % for the fourth quarter of 2009. The increase in gross margin percentage was substantially due to increased gross margin earned as a result of significantly higher vehicle production volumes. The positive impact of higher vehicle production volumes was partially offset by a significant increase in tooling revenue, which typically earns low or no margins for the Company, and costs incurred in preparation of upcoming program launches. Tooling revenue increased by $55.7 million to $72.7 million for the fourth quarter of 2010 from $17.0 million for the fourth quarter of 2009.

Fourth Quarter 2010 to Third Quarter 2010 comparison

The gross margin percentage for the fourth quarter of 2010 of 9.2% decreased by 0.2% as compared to the gross margin percentage for the third quarter of 2010 of 9.4%. Excluding the one time items recorded as cost of sales explained in Table B under "Adjustments to the Net Income", the gross margin percentage for the fourth quarter of 2010 increased to 9.6% from 9.5% for the third quarter of 2010. The gross margin percentage for the fourth quarter of 2010 was positively impacted by increased gross margin earned as a result of higher vehicle production volumes. The positive impact of higher vehicle production volumes was offset by a significant increase in tooling revenue, which typically earns low or no margins for the Company, and costs incurred in preparation of upcoming program launches. Tooling revenue increased by $52.0 million to $72.7 million for the fourth quarter of 2010 from $20.7 million for the third quarter of 2010.

2010 to 2009 comparison

The gross margin percentage for the year ended December 31, 2010 of 9.5% increased by 2.9% from the prior year comparable of 6.6%. Excluding the one time items recorded as cost of sales explained in Table C under "Adjustments to Net Income", the gross margin percentage for the year ended December 31, 2010 increased by 2.3% to 9.8% as compared to 7.5% for the year ended December 31, 2009. Similar to the fourth quarter comparisons discussed above, the increase in gross margin percentage was substantially due to increased gross margin earned as a result of significantly higher vehicle production volumes partially offset by the impact of a significant increase in tooling revenue, which typically earns low or no margins for the Company, and costs incurred in preparation of upcoming program launches. Tooling revenue increased by $72.7 million to $119.5 million for the year ended December 31, 2010 as compared to $46.8 million for the year ended December 31, 2009.

ADJUSTMENTS TO NET INCOME

As a result of the economic recession in North America that caused a significant reduction in production by customers in 2009 and 2010 and a number of industry-related developments and risks described in the Company's MD&A for the financial year ended December 31, 2010, and the rationalization of the Company's manufacturing facilities, the Company recorded a number of unusual items and other items during the whole of the financial years ended December 31, 2010 and 2009. The Company believes that it is useful to set out in detail these unusual and other items as they are non-recurring and, as a result, the Company's financial results for the years ended December 31, 2010 and 2009 may not be indicative of future results.

TABLE A
	For the quarter ended December 31
	2010		2009		Change
NET EARNINGS/(LOSS) (PER CANADIAN GAAP) (A)	5,122		(5,378	)	10,500
Add back - Unusual Items:
Impairment of Property, Plant & Equipment (1)	3,802		7,322		(3,520	)
Impairment of Intangible Assets (2)	-		287		(287	)
Employee Related Severance Costs (3)	1,938		349		1,589
Other Restructuring Costs (4)	4,609		459		4,150
Other Restructuring Costs – Period costs and pension expense recorded as cost of sales for facilities closed during restructuring (4)	569		1,774		(1,205	)
Other Restructuring Costs –Period costs recorded as SG&A expenses for facilities closed during restructuring (4)	294		102		192
Add back - Other Items:
Pension plan settlement and Other Post Employment Benefit Curtailment recorded as cost of sales (5)	1,258		-		1,258
Valuation Allowance on Future Tax Assets (7)	95		1,241		(1,146	)
Development Costs recorded as cost of sales (8)	-		5,358		(5,358	)
Settlement of Customer Contracts recorded as cost of sales (10)	-		900		(900	)
TOTAL UNUSUAL AND OTHER ITEMS BEFORE TAX	12,565		17,792		(5,227	)
Tax impact of above items	(3,732	)	(4,413	)	681
TOTAL UNUSUAL AND OTHER ITEMS AFTER TAX (B)	8,833		13,379		(4,546	)
ADJUSTED NET EARNINGS (NON CANADIAN GAAP) (A + B)	13,955		8,001		5,954
Number of Shares Outstanding – Basic ('000)	83,325		83,326
Adjusted Basic Earnings / (Loss) Per Share	0.17		0.10
Number of Shares Outstanding – Diluted ('000)	84,478		84,107
Adjusted Diluted Earnings / (Loss) Per Share	0.17		0.10

TABLE B
	For the quarter ended
	December 31, 2010		September 30, 2010		Change
NET EARNINGS (PER CANADIAN GAAP) (A)	5,122		5,746		(624	)
Add back - Unusual Items:
Impairment of Property, Plant & Equipment (1)	3,802		-		3,802
Employee Related Severance Costs (3)	1,938		250		1,688
Other Restructuring Costs (4)	4,609		5,223		(614	)
Other Restructuring Costs – Period costs and pension expense recorded as cost of sales for facilities closed during restructuring (4)	569		307		262
Other Restructuring Costs –Period costs recorded as SG&A expenses for facilities closed during restructuring (4)	294		142		152
Add back - Other Items:
Pension plan settlement and Other Post Employment Benefit Curtailment recorded as cost of sales (5)	1,258		-		1,258
Valuation Allowance on Future Tax Assets (7)	95		-		95
TOTAL UNUSUAL AND OTHER ITEMS BEFORE TAX	12,565		5,922		6,643
Tax impact of above items	(3,732	)	(1,530	)	(2,202	)
TOTAL UNUSUAL AND OTHER ITEMS AFTER TAX (B)	8,833		4,392		4,441
ADJUSTED NET EARNINGS (NON CANADIAN GAAP) (A + B)	13,955		10,138		3,817
Number of Shares Outstanding – Basic ('000)	83,325		83,326
Adjusted Basic Earnings Per Share	0.17		0.12
Number of Shares Outstanding – Diluted ('000)	84,478		84,279
Adjusted Diluted Earnings Per Share	0.17		0.12

TABLE C
	Year ended December 31
	2010		2009		Change
NET EARNINGS/(LOSS) (PER CANADIAN GAAP) (A)	32,993		(24,940	)	57,933
Add back - Unusual Items:
Impairment of Property, Plant and Equipment (1)	10,110		7,322		2,788
Impairment of Intangible Assets (2)	-		287		(287	)
Employee Related Severance Costs (3)	6,325		8,430		(2,105	)
Other Restructuring Costs (4)	11,474		5,185		6,289
Other Restructuring Costs – Period costs and pension expense recorded as cost of sales for facilities closed during restructuring (4)	1,840		6,460		(4,620	)
Other Restructuring Costs – Period costs recorded as SG&A expenses for facilities closed during restructuring (4)	504		1,335		(831	)
Add back - Other Items:
Pension settlement and Other Post Employment Benefits Curtailment recorded as cost of sales (5)	628		(3,700	)	4,328
Gain on sale of Kitchener land and building and other excess land (6)	(10,675	)	(3,963	)	(6,712	)
Development costs recorded as cost of sales (8)	1,283		7,111		(5,828	)
Valuation Allowance on Future Tax Assets (7)	(450	)	1,241		(1,691	)
Writedown of excess service inventory at the Company's Windsor, Ontario facility recorded as cost of sales (9)	1,290		-		1,290
Settlement of Customer Contracts recorded as cost of sales(10)	-		900		(900	)
TOTAL UNUSUAL AND OTHER ITEMS BEFORE TAX	22,329		30,608		(8,279	)
Tax Impact of above items	(7,869	)	(9,859	)	1,990
TOTAL UNUSUAL AND OTHER ITEMS AFTER TAX (B)	14,460		20,749		(6,289	)
ADJUSTED NET EARNINGS / (LOSS) (NON CANADIAN GAAP) (A + B)	47,453		(4,191	)	51,644
Number of Shares Outstanding – Basic ('000)	83,326		77,797
Adjusted Basic Earnings / (Loss) Per Share	0.57		(0.05	)
Number of Shares Outstanding – Diluted ('000)	84,456		78,426
Adjusted Diluted Earnings / (Loss) Per Share	0.56		(0.05	)

(1) Impairment of Property, Plant and Equipment ("PP&E")

During 2010, the Company determined that the carrying value of certain dedicated manufacturing and stamping equipment exceeded its recoverable amount. Consequently, the carrying value of the PP&E was written down by $10.1 million representing the excess of the carrying amount of the PP&E over its estimated fair value, of which $3.8 million was recorded in the fourth quarter of 2010. A similar impairment charge of $7.3 million was recorded in the fourth quarter of 2009. PP&E impairment charges are non-cash in nature.

(2) Impairment of Intangible Assets

During the fourth quarter of 2009, the Company determined that the carrying amount of certain intangible assets was impaired as a result of the deteriorating macro environment directly impacting the automotive industry. The Company assessed the recoverability of intangible assets by determining whether the carrying amount of such assets could be recovered through undiscounted future cash flows. Since the undiscounted future cash flows were less than the carrying amount, the excess of the carrying amount over the estimated fair value of $0.3 million was recorded as an impairment charge in 2009. The intangible asset impairment charge is non-cash in nature.

(3) Employee Related Severance Costs

During the fourth quarter of 2010, the Company incurred employee related severance costs of $1.9 million relating primarily to the closure of a Company facility in Mississauga, Ontario on December 13, 2010 and the right-sizing of operating facilities in southwestern Ontario. The restructuring activities undertaken during the fourth quarter of 2010 formed part of the Company's overall cost cutting program aimed at realigning and increasing the efficiency of the Company's operations. Similar severance costs were incurred throughout 2009 and the first three quarters of 2010. At this time, the Company does not expect to incur any additional employee related severance costs at these facilities.

During the second quarter of 2010, the Company also incurred employee related severance costs of $3.9 million resulting primarily from the closure of the Company's facility in Windsor, Ontario on June 30, 2010. No further employee related severance costs are expected to be incurred at this facility.

During the second quarter of 2009, the Company negotiated a buy-down and buyout agreement with employees of its Shelbyville, Kentucky facility and incurred a settlement charge of $8.4 million to restructure the future salaries and benefits of the employees. This expense, along with other employee related severance costs incurred to realign and increase the efficiency of the Company's operations, was partially offset by a reversal of a severance accrual associated with the Kitchener facility resulting in a net expense of employee-related severance costs of $8.4 million for the year ended December 31, 2009.

(4) Other Restructuring Costs

In response to the significant decline in vehicle production volumes beginning in 2008, the Company undertook certain initiatives to prepare for a profitable and sustainable future. In so doing, certain restructuring activities were executed throughout 2009 and 2010. These initiatives included strict cost reduction measures across the entire organization, the consolidation and closure of certain facilities and the rationalization of excess capacity at certain facilities achieved by moving equipment and programs between facilities.

Other restructuring costs during 2010 relate primarily to the cessation of manufacturing operations at the Company's Windsor, Ontario and Mississauga, Ontario facilities on June 30, 2010 and December 13, 2010, respectively, and the right-sizing of operating facilities in southwestern Ontario. Other restructuring costs include directly attributable facility and right-sizing costs and costs relating to the dismantling and transportation of PP&E between Company facilities. At this time, the Company does not expect to incur any further significant restructuring costs with the exception of the funding of the Windsor pension and OPEB plans which the Company will continue to fund over the next three years and the windup of the Martinrea Fabco Hot Stampings pension plan which is expected to be completed in 2011.

The Company has expensed total restructuring costs of $91.7 million (combining this item with "Employee Related Severance Costs" in Item 3 above) of which $20.1 million was expensed in 2010 and $21.4 million in 2009. The balance of $50.2 million was expensed in 2008.

As at December 31, 2010, $2.6 million of the total restructuring and employee related severance costs recorded were included in accounts payable and accrued liabilities.

(5) Pension settlement and other post employment benefit curtailment

During the fourth quarter of 2010, the Company settled the pension plan at its facility in Shelbyville, Kentucky. In doing so, the Company made payments towards lump sum payouts for those members who elected to receive payment of the plan in 2010 and annuities for those members who elected to postpone payment of the plan. The net loss on settlement (including the impact of an OPEB curtailment which resulted from the pension settlement) was approximately $1.3 million.

The Company also recognized a curtailment gain of $0.6 million during the second quarter of 2010 and $3.7 million during 2009 as a result of the restructuring of the post employment benefits of the employees at its Shelbyville, Kentucky facility and restructuring at its Windsor, Ontario facility leading to the curtailment of future benefits under the OPEB plan.

(6) Gain on sale of Kitchener land and building and other excess land

On June 25, 2010, the Company sold the land and building located in Kitchener, Ontario ("Kitchener Real Property") on an "as is" basis resulting in a gain on sale of $10.7 million in the second quarter of 2010. The fair value of the proceeds on disposition of the property amounted to $13.7 million of which $1.1 million was paid in cash and the remainder in the form of the promissory note with a face value of $13.9 million. The promissory note is secured by the Kitchener Real Property and is scheduled to be fully repaid by December 2013. Scheduled repayments of $2.4 million were received during the fourth quarter.

In 2009, the Company sold a piece of excess land and recorded a gain of approximately $4.0 million.

(7) Valuation Allowance on Future Tax Assets

During 2010, the Company's valuation allowance against future tax assets decreased by $0.5 million primarily on account of changes in non-capital losses. The valuation allowance at December 31, 2010 includes $8.5 million of US non-capital loss carry forwards, $5.1 million of European non-capital loss carry forwards, $2.0 million of Mexican non-capital loss carry forwards and $1.7 million of Canadian future tax assets relating primarily to capital losses.

(8) Development Costs

Development costs in the nature of employee training and other operational inefficiencies during the product launch period are expensed in accordance with Canadian GAAP and the Company's accounting policies. The Company expensed approximately $7.1 million in 2009 and $1.3 million in the first quarter of 2010 in relation to development costs for takeover business from SKD. Of the $7.1 million recorded as expense in 2009, $5.4 million was incurred in the fourth quarter of 2009.

(9) Write-down of excess service inventory at the Company's Windsor, Ontario facility

Certain excess service inventory costs of approximately $1.2 million associated with discontinued platforms were expensed during the second quarter of 2010 in connection with the closure of the Company's facility in Windsor, Ontario.

(10) Settlement of Customer Contract

During the fourth quarter of 2009, the Company reached a settlement with a Russian customer who was in the process of restructuring operations. As a result of the customer restructuring and the cancellation of the customer contract, net expenses of approximately $0.9 million were incurred during the fourth quarter of 2009.

NET INCOME (LOSS)
		Quarter ended December 31			Year ended December 31
		2010	2009		2010	2009
Net Earnings/(loss)		5,122	(5,378	)	32,993	(24,940	)
Adjusted Net Earnings/(loss)		13,955	8,001		47,453	(4,191	)
Earnings per common share
	Basic	0.06	(0.06	)	0.40	(0.32	)
	Diluted	0.06	(0.06	)	0.39	(0.32	)
Adjusted Net Earnings per common share
	Basic	0.17	0.10		0.57	(0.05	)
	Diluted	0.17	0.10		0.56	(0.05	)

Fourth Quarter 2010 to Fourth Quarter 2009 comparison

The net earnings for the fourth quarter of 2010 of $5.1 million increased by $10.5 million from a net loss of $5.4 million for the fourth quarter of 2009 primarily on account of increased customer production volumes and a decrease in the net impact of one time items as described in Table A under "Adjustments to Net Income". Excluding one time items, the adjusted net earnings in the fourth quarter of 2010 improved to $14.0 million or $0.17 per share, on a basic and diluted basis, in comparison to adjusted net earnings of $8.0 million or $0.10 per share, on a basic and diluted basis, for the fourth quarter of 2009.

The increase in adjusted net earnings in the fourth quarter of 2010 as compared to the fourth quarter of 2009 was primarily due to an 11.3% increase in revenue (excluding tooling revenue) in the fourth quarter of 2010 as compared to the fourth quarter 2009 partially offset by an increase in new program launch activity.

Fourth Quarter 2010 to Third Quarter 2010 comparison

The net earnings for the fourth quarter of 2010 of $5.1 million decreased by $0.7 million from net earnings of $5.8 million for the third quarter of 2010 largely due to the impact of one-time items as discussed in Table B under "Adjustments to Net Income" partially offset by an increase in revenue for the fourth quarter. Excluding one time items, the adjusted net earnings for the fourth quarter of 2010 increased to $14.0 million or $0.17 per share, on a basic and diluted basis, as compared to net earnings of $10.1 million or $0.12 per share, on a basic and diluted basis, for the third quarter of 2010.

The increase in adjusted net earnings in the fourth quarter of 2010 as compared to the third quarter of 2010 was mainly due to a 12.6% increase in revenue (excluding tooling revenue) in the fourth quarter of 2010 as compared to the third quarter of 2010 and the effects of a lower effective income tax rate in the fourth quarter.

2010 to 2009 comparison

The net earnings for the year ended December 31, 2010 of $33.0 million increased by $57.9 million from a net loss of $24.9 million for the year ended December 31, 2009 primarily on account of increased customer production volumes and a decrease in the net impact of one time items as described in Table C under "Adjustments to Net Income". Excluding one time items, the adjusted net earnings for the year ended December 31, 2010 improved to $47.5 million or $0.57 per share ($0.56 on a diluted basis) in comparison to an adjusted net loss of $4.2 million or $0.05 per share, on a basic and diluted basis, for the year ended December 31, 2009.

The increase in adjusted net earnings for the year ended December 31, 2010 as compared to the year ended December 31, 2009 was primarily due to a 43.9% increase in revenue (excluding tooling revenue) for the year ended December 31, 2010 as compared to the year ended December 31, 2009 partially offset by an increase in new program launch activity.

CAPITAL EXPENDITURES
	Quarter ended December 31		Year ended December 31
	2010	2009	2010	2009
Capital Expenditures	35,005	16,573	90,932	51,413

Fourth Quarter 2010 to Fourth Quarter 2009 comparison

Capital expenditures increased by $18.4 million from $16.6 million in the fourth quarter of 2009 to $35.0 million in the fourth quarter of 2010. Capital expenditures incurred in the fourth quarter of 2010 are primarily related to the purchase of new program equipment in response to newly awarded business scheduled to launch over the next two years and capital for a new plant the Company will be opening in Silao, Mexico during 2011.

Fourth Quarter 2010 to Third Quarter 2010 comparison

Capital expenditures increased by $11.9 million from $23.1 million in the third quarter of 2010 to $35.0 million in the fourth quarter of 2010. Capital expenditures incurred in the fourth quarter of 2010 are primarily related to the purchase of new program equipment in response to newly awarded business scheduled to launch over the next two years and capital for a new plant the Company will be opening in Silao, Mexico during 2011. General timing of capital expenditures also contributed to the increase.

2010 to 2009 comparison

Capital expenditures increased by $39.5 million from $51.4 million for the year ended December 31, 2009 to $90.9 million for the year ended December 31, 2010. Capital expenditures incurred during the year ended December 31, 2010 are primarily related to building expansions at Jonesville, Michigan, Springfield, Tennessee, Tupelo, Mississippi and the Company's Saltillo, Ramos and Hermosillo facilities in Mexico, the purchase of new program equipment in response to newly awarded business scheduled to launch over the next two years and capital for a new plant the Company will be opening in Silao, Mexico during 2011.

Fred Jaekel, Martinrea's Chief Executive Officer, stated: "The year 2010 was a year of growth and progress for Martinrea, and we saw much improved revenues and profitability from 2009. We saw a recovery in the North American automotive industry, and our revenues of $1.68 billion are up almost 50% from the previous year. We generated positive earnings in each of the four quarters of 2010, and generated significant positive cash flow from operations during the year. The year 2010 overall was an excellent year for new business awards, exceeding $300 million in annual sales when launched. This is a very good sign of customer confidence in us and our future. We received work from both traditional and relatively new customers throughout the year, including GM, Ford, Chrysler, Nissan, BMW, Volkswagen, Fiat, Honda, Hyundai and Toyota, as well as industrial customers such as John Deere. As noted previously, one of our biggest jobs now is to successfully launch the work. By the end of 2012, we have approximately $475 million in annual sales, based on projected volumes, to launch, which will help to fill our factories. We are confident we can do this well, and we have the people to do it."

Nick Orlando, Martinrea's President and Chief Financial Officer, stated: "We had a good year and fourth quarter from a financial point of view. Our fourth quarter revenues represented our highest quarterly level for the year, even excluding significant fourth quarter tooling revenue. Our gross margin percentage in the fourth quarter was 9.2%, slightly lower than the third quarter, but adjusting for one-time items, was 9.6% and slightly higher. The higher level of tooling revenue in the quarter also reduced margins. Overall, though, gross margins are improving. Net income, on a basic and diluted basis, for the fourth quarter was $0.06 per common share, and adjusted net income before unusual and other items was $0.17 per share on a basic and diluted basis. We did have some unusual items as we continue to restructure some of our operations, but we believe that, subject to broader economic or automotive industry risks, the restructuring is substantially complete. Our adjusted fourth quarter net earnings were the highest level of the year, showing that our restructuring efforts are taking hold and volumes and throughput increases are helping the bottom line. We believe that we are well positioned to grow our earnings and cash flow in 2011, provided customer production volumes are as anticipated and we launch well the programs we have in front of us."

Rob Wildeboer, Martinrea's Executive Chairman stated: "The year 2010 was a great building year for us. As for 2011, we believe that a primary focus of our company will be on launch activity. We believe that the North American automotive industry is healthier than it has been in several years, and that volumes will rise over time, although the speed of the recovery of the overall North American market is still uncertain. This will provide Martinrea with opportunities as an innovative and cost effective supplier to our customers. Our strategies will remain the same as they have been, focused on prudent, profitable growth. We also have the capability to take advantage of opportunities given our strong financial position. We continue to have a strong balance sheet. In that regard, we have just renewed and expanded our bank facilities, adding two banks, increasing our lines and lowering our cost of debt. Customers can see we have the financial capability to expand and take on new work. We also have the capacity to purchase shares under our normal course issuer bid, now that we are out of our blackout period. At year end, we reflect on the support we have received in the past year, and we thank all of our shareholders, lenders, customers and of course our employees for their continued and valued support."

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable Canadian securities laws including statements related to the Company's expectations as to gross margin percentage, increased sales and production, the Company's expectations regarding the opportunity to increase sales, the Company's expectations regarding the launching of new metal forming and fluid systems programs, the Company's views regarding the nature, duration and recovery of the economic recession, including to the continuation of monitoring, managing and rationalization of expenses, the Company's expectations regarding the amount, duration and nature of restructuring costs and expenses to be expensed, the Company's expectations on the winding up and funding of pension plans, the Company's expectation regarding the financing of future capital expenditures, the Company's view on the financial viability of its customers and the long term outlook of the automotive industry, the Company's ability to capitalize on opportunities in the automotive industry, the Company's expectations on the opening of new plants, the Company's expectations as to its normal course issuer bid, 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 under "Risks and Uncertainties" in the Company's MD&A for the year ended December 31, 2010 and which are also discussed in the Company's Annual Information Form for the year ended December 31, 2010 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, which have experienced and may continue to face severe financial challenges;
• financial viability of suppliers;
• Martinrea's reliance 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 in-sourcing trends;
• competition with low cost countries;
• 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;
• 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;
• 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.

A conference call to discuss these results will be held on Wednesday, March 16, 2011 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 (800) 408-3053 (conference id – 4555837#). The rebroadcast will be available until March 30, 2011.

MARTINREA INTERNATIONAL INC.
Consolidated Balance Sheets
December 31, 2010 and 2009
(in thousands of dollars)
			2010			2009
Assets
Current assets:
	Cash and cash equivalents	$	26,027		$	22,769
	Accounts receivable		243,912			221,591
	Other receivables		6,492			7,380
	Income tax recoverable		-			13,369
	Inventories (note 3)		145,614			136,050
	Prepaid expenses and deposits		4,401			4,389
	Current portion of promissory note (note 8)		5,994			-
			432,440			405,548
Property, plant and equipment (note 4)			413,978			395,855
Future income tax assets (note 13)			65,310			64,379
Intangible assets (note 5)			14,753			18,315
Promissory note (note 8)			4,641			-
Note receivable (note 6)			-			199,666
		$	931,122		$	1,083,763
Liabilities and Shareholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities	$	254,470		$	224,097
	Income tax payable		372			-
	Current portion of long-term debt (note 10)		15,735			14,845
			270,577			238,942
Long-term debt (note 10)			87,399			72,555
Pension and other post-retirement benefits (notes 11 and 12)			19,145			237,239
Future income tax liabilities (note 13)			33,874			30,824
Non-controlling interest			922			1,259
Shareholders' equity:
	Share capital (note 14)		682,495			683,057
	Notes receivable for share capital (note 14)		(2,700	)		(2,700	)
	Contributed surplus (note 15)		41,270			37,402
	Accumulated other comprehensive loss		(79,311	)		(59,336	)
	Accumulated deficit		(122,549	)		(155,479	)
Guarantees and commitments (note 21)			519,205			502,944
		$	931,122		$	1,083,763
See accompanying notes to consolidated financial statements.
On behalf of the Board:
"Fred Jaekel" Director
"Robert Wildeboer" Director
MARTINREA INTERNATIONAL INC.
Consolidated Statements of Operations
For the years ended December 31, 2010 and 2009
(in thousands of dollars, except per share amounts)
			2010			2009
Sales		$	1,689,379		$	1,138,140
Cost of sales (excluding amortization of property, plant and equipment)			1,485,865			1,016,917
Amortization of property, plant and equipment (production)			43,619			46,122
Total cost of sales			1,529,484			1,063,039
Gross profit			159,895			75,101
Expenses:
	Selling, general and administrative		83,664			74,136
	Foreign exchange loss		450			7,342
	Amortization of property, plant and equipment (non-production)		2,864			2,897
	Amortization of intangible assets (note 5)		4,683			4,703
	Impairment charge on intangible assets and plant and equipment (notes 4 and 5)		10,110			7,609
	Restructuring costs (note 7)		17,799			13,615
	Interest on long-term debt		6,708			5,305
	Other interest income, net		(512	)		(376	)
	Gain on disposal of property, plant and equipment		(10,529	)		(3,677	)
			115,237			111,554
Income (loss) before income taxes and non-controlling interest			44,658			(36,453	)
Income taxes (recovery) (note 13):
	Current		9,529			(6,808	)
	Future		2,473			(4,576	)
			12,002			(11,384	)
Income (loss) before non-controlling interest			32,656			(25,069	)
Non-controlling interest			(337	)		(129	)
Net income (loss)		$	32,993		$	(24,940	)
Income (loss) per common share (note 16):
	Basic	$	0.40		$	(0.32	)
	Diluted		0.39			(0.32	)
See accompanying notes to consolidated financial statements.
MARTINREA INTERNATIONAL INC.
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31, 2010 and 2009
(in thousands of dollars)
			2010			2009
Net income (loss)		$	32,993		$	(24,940	)
Other comprehensive income (loss), net of tax:
Unrealized loss on translation of financial statements of self-sustaining operations			(19,975	)		(46,124	)
Other comprehensive loss			(19,975	)		(46,124	)
Comprehensive income (loss)		$	13,018		$	(71,064	)
See accompanying notes to consolidated financial statements.

MARTINREA INTERNATIONAL INC.

Consolidated Statements of Changes in Shareholders' Equity

For the years ended December 31, 2010 and 2009

(in thousands of dollars)

	Share capital			Notes receivable for share capital			Contributed surplus			Accumulated other comprehensive loss			Accumulated deficit			Total
Balances, December 31, 2008		629,052			(2,700	)		34,478			(13,212	)		(130,539	)		517,079
Net loss		-			-			-			-			(24,940	)		(24,940	)
Shares issued in private placement (net of share issue costs of $2,486 and future tax recovery of $716)		54,005			-			-			-			-			54,005
Compensation expense related to stock options		-			-			2,924			-			-			2,924
Other comprehensive loss		-			-			-			(46,124	)		-			(46,124	)
Balances, December 31, 2009		683,057			(2,700	)		37,402			(59,336	)		(155,479	)		502,944
Net income		-			-			-			-			32,993			32,993
Compensation expense related to stock options		-			-			3,897			-			-			3,897
Exercise of employee stock options		101			-			(29	)		-			-			72
Repurchase of common shares (note 14)		(663	)		-			-			-			(63	)		(726	)
Other comprehensive loss		-			-			-			(19,975	)		-			(19,975	)
Balances, December 31, 2010	$	682,495		$	(2,700	)	$	41,270		$	(79,311	)	$	(122,549	)	$	519,205

See accompanying notes to consolidated financial statements.

MARTINREA INTERNATIONAL INC.
Consolidated Statements of Cash Flows
For the years ended December 31, 2010 and 2009
(in thousands of dollars)
				2010			2009
Cash provided by (used in):
Operating activities:
	Net income (loss)		$	32,993		$	(24,940	)
	Items not involving cash:
		Amortization of property, plant and equipment		46,483			49,019
		Amortization of intangible assets (note 5)		4,683			4,703
		Impairment charge on intangible assets and plant and equipment (notes 4 and 5)		10,110			7,609
		Amortization of deferred financing costs		287			237
		Accretion of interest on promissory note		(321	)		-
		Unrealized (gains) losses on foreign exchange forward contracts		(15	)		67
		Future income taxes		2,473			(4,576	)
		Non-controlling interest		(337	)		(129	)
		Gain on disposal of property, plant and equipment		(10,529	)		(3,677	)
		Stock-based compensation		3,897			2,924
		Pension and other post-employment benefits		2,554			5,200
	Contribution made to pension and other post-employment benefits			(19,895	)		(12,778	)
				72,383			23,659
	Changes in non-cash working capital items:
		Accounts receivable		(29,534	)		(24,296	)
		Other receivables		627			(238	)
		Inventories		(13,848	)		(9,452	)
		Prepaid expenses and deposits		(12	)		742
		Accounts payable and accrued liabilities		37,634			(1,015	)
		Income taxes payable / recoverable		12,878			6,915
				80,128			(3,685	)
Financing activities:
	Issue of share capital (net of share issuance costs) (note 14)			-			54,005
	Repurchase of common shares			(726	)		-
	Exercise of employee stock options			72			-
	Increase in long-term debt			51,447			29,503
	Repayment of long-term debt			(35,545	)		(62,030	)
				15,248			21,478
Investing activities:
	Acquisition of SKD Automotive Group (net of acquisition costs) (note 2)			-			(4,267	)
	Purchase of property, plant and equipment			(90,932	)		(51,413	)
	Promissory note (net of principal repayments)			(10,314	)		-
	Development costs			(1,288	)		-
	Proceeds on disposal of property, plant and equipment			13,857			6,072
				(88,677	)		(49,608	)
Effect of foreign exchange rate changes on cash and cash equivalents				(3,441	)		(6,381	)
Increase (decrease) in cash and cash equivalents				3,258			(38,196	)
Cash and cash equivalents, beginning of year				22,769			60,965
Cash and cash equivalents, end of year			$	26,027		$	22,769
Supplemental cash flow information:
	Cash paid for interest, net		$	5,299		$	4,440
	Cash received for income taxes, net		$	(5,365	)	$	(8,670	)
See accompanying notes to consolidated financial statements.

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