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.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
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.
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%.
