Intier Automotive yesterday reported a first quarter 2002 earnings improvement to $US0.25 compared with $0.17 for the first quarter ended March 31, 2001.
Sales increased 7% to $878.9 million for Q1 2002 compared to $821.8 million for Q1 2001.
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North American production sales grew 8% to $521.3 million compared to $480.7 million and the increase was achieved as North American light vehicle production volumes increased approximately 5% to 4.1 million from 3.9 million units.
North American average content per vehicle increased 4% to $128 for Q1 2002 compared with $123 for Q1 2001 primarily due to the launch of a number of new programmes including door cassette modules for the Ford Expedition/Lincoln Navigator, and overhead system, seat tracks and window regulators for the Dodge Ram pickup, the complete seats and overhead system for the Saturn VUE and the cockpit module, door panels and overhead system for the Cadillac CTS.
Historically, Intier’s average content per vehicle was based on vehicle production volumes that included heavy trucks. In order to be consistent with other Tier 1 suppliers to which it is compared, the company has restated vehicle production volumes and excluded heavy truck production from its average content per vehicle.
Western European production sales were $275.3 million compared to $229.7 million. Western European average content per vehicle increased 25% to $64 compared to $51.
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By GlobalDataThe increase in average content per vehicle was primarily a result of the production of cockpit modules, door panels and other interior components for BMW’s Mini and the production of the complete interior, excluding the overhead system and instrument panel, for the Mercedes Vaneo, the door cassette modules for the Ford Fiesta/Ka, the instrument panel for the Opel Vectra and the complete seats for the Opel-Vauxhall Vivaro/Renault Trafic vans.
Western European vehicle production volumes declined by approximately 4% to 4.3 million units for Q1 2002 compared with 4.5 million units in Q1 2001.
Consolidated tooling and engineering sales for the first quarter declined by 26% to $82.3 million from $111.4 million.
Operating income for the quarter increased 22% to $28.5 million compared to $23.3 million. The increase in operating income was primarily attributable to higher sales and gross margin related to the higher average content per vehicle, operational improvements at under-performing divisions and the discontinuance of goodwill amortisation in Q1 2002, due to Intier’s adoption of new Canadian accounting methods, offset by start-up costs associated with a number of launches in the company’s closures business in Europe.
Diluted earnings per share was $0.25 for the three months ended March 31, 2002 an increase of 47% compared to a pro forma diluted earnings per share of $0.17 for Q1, 2001.
During the first quarter of 2002, cash generated from operations before changes in working capital was $41.8 million. Total investment activities during the first quarter of fiscal 2002 were $23.1 million.
Intier has declared a dividend in respect of the first quarter of 2002 of US$0.05 per share on the Class A subordinate voting and class B shares payable on June 17, 2002.
For the full year, Intier expects North American light vehicle production volume to increase by about 3% to 16.0 million units while western Europe production volumes are expected to decline by approximately 2% to 16.2 million units.
Based on these volume estimates, product mix assumptions and lower tooling and engineering sales estimates, 2002 total sales are expected to be in the $3.5 billion to $3.6 billion range.
The company expects its sales to increase for the second quarter of 2002 to an approximate range of $900 million to $950 million, compared to second quarter 2001 sales of $851 million.
