Global automotive supplier Federal Mogul Corporation today reported an increase in sales and net income for Q4 and the full year 2010.
Federal-Mogul reported Q4 2010 sales of $1.6 billion, up from $1.4 billion in Q4 2009, after growth in all business segments and all markets. OE sales grew by 20 percent in the quarter, and US aftermarket sales by 12 percent. Q4 net income was $45 million or $0.45 per share, better than most analyst estimates.
Full-year revenue of $6.2 billion represents an increase of $889 million (17 percent). Net income for the full year 2010 was $161 million, a $206 million dollar improvement over 2009.
Federal Mogul continued to strengthen its market position in the fast-growing BRIC markets (Brazil, Russia, India and China), diversifying its global sales base in Q4 with revenue from markets outside the US, Canada and Europe representing 19 percent of total revenue compared with 17 percent during the same period in 2009.
In the BRIC markets, Federal-Mogul aftermarket sales in full-year 2010 increased 10 percent with Russia up 31 percent, China up 18 percent, and India up 9 percent.
In Q4 2010 the company introduced new braking, suspension and filtration product lines, expanding the product offerings in its Wagner, MOOG and Champion brands. Federal-Mogul also expanded aftermarket sales and distribution channels in 2010, especially in BRIC markets where high automotive market growth rates are creating new opportunities.
Cash flow in 2010 was $231 million before the company's $55 million pension contributions and $39 million acquisition of the Daros Group, which compares favorably to full-year 2009 cash flow of $173 million.
"The strong fourth quarter and full-year 2010 sales and financial performance demonstrate our ability to grow faster than the markets and convert incremental revenue into solid profitability," said President and CEO José Maria Alapont.
“The global vehicle market is forecasted to grow from about 75 million units in 2010 to 104 million units by 2015," said Alapont. "During this period, in response to customer and regulatory demands, the global vehicle manufacturers are expected to increase spending on technology to improve fuel economy, reduce emissions and improve vehicle safety. The rising industry volumes, major growth in emerging markets and Federal-Mogul's leading technology and innovation in core products to address customer and market needs provide very favorable opportunities for Federal-Mogul.
"We remain optimistic that the global markets will keep strengthening in 2011 and beyond, and we are well-positioned to introduce innovative OE technologies and further develop leading aftermarket brands to capitalize on global profitable growth opportunities to exceed the market rates," Alapont concluded.
