SOUTHFIELD,
Mich. — Federal-Mogul Corp. reported its second quarter 2010 financial
results, with sales of $1.6 billion, 23 percent higher versus second
quarter 2009, strong gross margin of $274 million or 17.1 percent and
net income of $49 million or $0.49 per diluted share. Analysts’
consensus earnings expectation was $0.32 per share for second quarter
2010.
“Federal-Mogul’s results in the second quarter of 2010 show
our ability to deliver strong financial performance by converting
incremental revenue to profitability due to our continued focus on
efficiently managing our cost base established during 2009,” said José
Maria Alapont, president and chief executive officer.
“Federal-Mogul’s
margins, both in absolute terms and as a percentage of sales, are
significantly higher than a year ago and we have strongly improved
year-over-year cash flow.”
For the first half of 2010, compared to
the same period one year ago, Federal-Mogul converted additional sales
of $545 million into additional net income of $161 million, a
conversion rate of 30 percent.
The company’s stronger sales
performance is the result of market share gains in all regions and
markets, on top of a significant improvement in global automotive
original equipment light vehicle and commercial vehicle market demand.
Federal-Mogul’s sales in second quarter 2010 of $1.598 billion improved
23 percent, versus $1.304 billion recorded during the same period one
year ago. The company’s original equipment sales increased in North
America by 81 percent, Asia Pacific by 46 percent and Europe by 31
percent.