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.
