Federal-Mogul Holdings Corporation has reported Q1 2014 results with sales of $1.8 billion, 7% higher than the first quarter of 2013. Operating income improved $21 million, or 31% in Q1 2014 over the same period last year. Operational EBITDA was $166 million or 9.4% of sales in the first quarter of 2014, up from 8.3% of sales, or $138 million in Q1 2013.
The company stated that its improved financial results for the quarter were driven by higher sales volumes in the Powertrain division, as well as continued improvements in operational performance. The Powertrain division continued to gain market share in all regions with revenue of $1,138 million in Q1 2014, up from $1,029 million in Q1 2013, an 11% increase.
“Federal-Mogul’s Powertrain division realised improved sales globally due to increased vehicle production volumes, but also attributable to new customer contracts for our products, services and technologies,” stated Rainer Jueckstock, Federal-Mogul Co-CEO and CEO, Powertrain division. “Additionally, we continue to see improvements in our operational EBITDA, demonstrating our ongoing commitment to reduce costs and increase efficiencies.”
The company’s Vehicle Components Solutions (VCS) division had revenue of $720 million, up $6 million from $714 million in Q1 2013. North American aftermarket sales improved 4% as compared to Q1 2013, driven by stronger sales in the latter half of the quarter which were partially offset by lower North American OE sales, resulting from the planned exit of a customer supply contract. European aftermarket sales declined by 3% on a constant dollar basis resulting from lower volumes. This decline was offset by stronger OE sales in the region, which were up 4% over the same comparison period. Sales in Rest of World were reported as relatively flat.
“Our primary focus is to provide our customers with the highest quality products and excellent service at a competitive price,” stated Daniel Ninivaggi, Federal-Mogul Co-CEO and CEO, Vehicle Components Solutions division. “During the first quarter, we continued to make progress strengthening our product portfolio, enhancing our service levels and improving our cost structure.”