Federal-Mogul reports increased sales in first quarter 2016
April 26, 2016
Federal-Mogul Holdings Corporation has announced financial results for the first quarter ended March 31, 2016, stating that net sales for the first quarter were $1,897 million, compared to $1,835 million in Q1 2015, a $62 million or 3% increase.
Aftermarket sales growth in the US and Canada as well as sales from the acquired valvetrain business, were partially offset by $52 million of negative impact from currency exchange rate fluctuations. Gross profit was $288 million, or 15.2% of sales, a 1.5 percentage point margin improvement, compared with Q1 2015.
The improved gross profit margin was driven primarily by higher aftermarket sales in the US and Canada, operational improvements in both divisions as well as the favourable impact of ongoing restructuring and integration programs. Net income from continuing operations attributable to Federal-Mogul in the quarter was $35 million, compared with a net loss from continuing operations attributable to Federal-Mogul of $11 million in Q1 2015. Adjusted net income in Q1 2016 was $52 million and operational EBITDA in Q1 2016 was $193 million, compared to $142 million in Q1 2015.
Federal-Mogul’s Powertrain division reported first quarter revenue of $1,128 million, compared to $1,138 million in the same prior year period. The slight decrease in Powertrain’s revenue was principally driven by a $30 million negative impact from currency exchange rate fluctuations and a $13 million decrease in inter-segment sales, partially offset by revenue from the acquired valvetrain business.
Federal-Mogul’s Motorparts division reported first quarter revenue of $831 million, compared to $773 million in the prior year period. Revenue growth of $80 million was partially offset by a $22 million negative impact from currency exchange rate fluctuations.