Intier Automotive boosted operating income to $US48.2 million for the three months ended September 30, 2004 compared to $17.6 million for Q3, 2003.
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The improved operating income resulted in earnings per share from of $0.45 for the third quarter compared with $0.12 a year ago.
Sales rose to $ 1,272.1 million from $ 1,039.2 million and net income of $27.4 million compared with $6.1 million in Q3 ’03.
Nine-month operating income for 2004 was $175.3 million ($84.9 million) while net income rose to $99.1 million from £37.3 million.
Earnings per share for the first nine months were $1.61 ($ 0.73).
In a statement, Intier said its sales growth was attributable to increased average dollar content per vehicle in North America resulting from new products launched during the first nine months of 2004 and the second half of 2003. The strengthening of the Canadian dollar, euro and British pound relative to the US dollar also contributed to sales growth.
North American production sales grew to $781.6 million in the third quarter of 2004 compared to $593.6 million in the third quarter of 2003 as a result of the higher North American average dollar content per vehicle. North American average dollar content per vehicle increased to $215 for the third quarter of 2004 compared to $162 for the third quarter of 2003.
New products that contributed to this increase included the interior integration, overhead system, instrument panel and door panels for the Cadillac STS and the complete seats for the Mercury Mariner. North American light vehicle production volumes decreased 1% to approximately 3.6 million units for the three month period ended September 30, 2004 compared to 3.7 million units for the three month period ended September 30, 2003.
Western European production sales increased 17% to $396.0 million for the third quarter of 2004 from $337.9 million for the third quarter of 2003 but this was primarily the result of the strengthening of the British pound and euro relative to the US dollar.
New products launched in the first nine months of 2004 and in the second half of 2003 also contributed to the increased sales. 2004 launches included the door panels for the BMW 1 series; a modular side door latch for a number of Audi programmes; and the door panels, interior trim, carpet and cargo management system for the Mercedes A-class.
Western European average dollar content per vehicle increased to $106 for the third quarter of 2004 compared to $93 for the third quarter of 2003. Western European vehicle production volumes increased 2% to 3.7 million units for the third quarter of 2004 compared to 3.6 million units for the third quarter of 2003.
Tooling and engineering sales for the three month period ended September 30, 2004 decreased by 12% to $94.5 million from $107.7 million for the three month period ended September 30, 2003.
The increase in operating income for the third quarter was primarily attributable to higher sales resulting from new products, lower launch costs and increased operating efficiencies at certain divisions compared to the same period in the previous year. These improvements were partially offset by higher raw material prices, increased selling, general and administrative costs and higher depreciation expenses, Intier said.
Company president and CEO Don Walker said: “Investments made in support of new successful products that started production over the past year are contributing to improvement in our gross margin and earnings. Also, during the third quarter we substantially completed our European restructuring with the sale of a non- strategic manufacturing division”.
For the full year, North American and European light vehicle production volumes are expected to be approximately 15.9 million and 16.2 million units, respectively. Full year average dollar content per vehicle is expected to be between $205 and $210 for North America and $97 to $103 for Europe.
Based on these production volume estimates, product mix and foreign exchange rate assumptions and tooling and engineering sales estimates, Intier expects 2004 total sales to be between $5.2 billion and $5.4 billion.
