Federal-Mogul on Thursday said first quarter 2011 net income more than tripled to US$51m or $0.51 per share, compared with $15m and $0.15 a year ago.
Sales rose 16% to $1.7bn. Gross margin of $279m, or 16.2% of sales, was up from $254m in Q1 2010. Operational EBITDA was up 30% to $179m.
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“Federal-Mogul had another strong financial performance in the first quarter of 2011,” said president and CEO Jose Maria Alapont. “We increased our EBITDA by $41m or 30% and more than tripled our net income, on a sales increase of 16%, demonstrating our strength at converting increased revenue to greater profitability. This is our eighth consecutive quarter of profitable results and our performance again compares favourably to analysts’ expectations.”
The company’s stronger sales performance reflected an improvement in market share position for all business units on top of the impact of higher global original equipment market demand. Federal-Mogul’s OE sales were $1.1bn in Q1 2011, an increase of $211m or 23% from $936m in Q1 2010. The company’s original equipment sales were higher in all regions on a constant dollar basis, with exchange accounting for about 1% of the reported year-over-year sales growth. The company had, as well, strong global aftermarket sales in all regions, totaling $577m in Q1 2011, up 4% or $24m.
Federal-Mogul’s liquidity remains very strong at $1.5bn with $1.0bn of cash and an unused revolver of $0.5bn.
“The company’s Q1 2011 OE and aftermarket growth, in both market share position and overall revenue, is due to the strong demand for our leading technology and innovation,” said Alapont.
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