Federal-Mogul has announced record third quarter sales and claimed “strong” financial results compared with Q3 2010 though net profit fell. Sales rose 12% to US$1.7bn on market share gains, higher volumes and favorable currency.

Gross margin was $263m or 15.2% of sales, a $25m increase. Selling, general and administrative expenses were $172m or 9.9% of sales in the quarter.

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Net income was $34m or $0.34 per share compared to $53m or $0.53 per share in Q3 2010. The supplier said the result compared favourably with adjusted net income of $29m in Q3 2010 when excluding the non-cash OPEB curtailment gain recorded then.

Operational EBITDA was $166m in the third quarter 2011, or 9.6% of sales.

“This result reflects continued strong operating performance combined with additional investment in R&D and new programme start-up costs to support market share growth in the original equipment business.  Increases in capital investments and working capital were required to support volume and market share growth resulting in a cash outflow of [negative] $71m,” Federal-Mogul said in a statement.

Original equipment sales were up 19%, or 13% on a constant dollar basis, reflecting increases in BRIC markets of 28%, with a 29% OE sales increase in China and a 35% increase in India. In the US, sales were up 10% and in Europe up 20%, driven by strong powertrain sales and favorable currency.

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The global aftermarket business segment reported 1% higher sales, which includes three points of positive currency exchange impact. Aftermarket sales in Q3 included strong revenue increases in BRIC markets with China up 14% and India up 18%.