Federal-Mogul posted a higher-than-expected profit in the second quarter

Article by Christian A., on July 27, 2011

Federal-Mogul Corp. posted a higher profit in the second quarter, resulting to an increase in market share in the business segments that serve the auto industry. The auto parts supplier, which makes powertrain and safety technologies, is controlled by billionaire investor Carl Icahn.

It emerged from bankruptcy in December 2007 under Icahn's control. Federal-Mogul said that it aims to concentrate mostly on expanding its current businesses and "strategic" acquisitions.

It posted a net income of $64 million in the second quarter compared to $49 million the previous year. Sales had increased by about 13% to $1.8 billion. Analysts were anticipating sales of $1.7 billion.

According to CEO Jose Maria Alapont, the world economy slowed down in the second quarter but he explained that Federal Mogul’s flexibility and presence in both mature and emerging markets enable it to endure slowdowns. Alapont said that the “markets are not performing equally for everybody.”

He explained that those who aren’t seen globally will have some “bad quarters.” In the latest quarter, revenue increased by 22% in the "BRIC" Brazil, Russia, India and China) countries. In India, revenue rose by 28%.

In China, revenue increased by 20% however, its sales have dropped after having reached high growth levels earlier in the year. Federal-Mogul's restructuring deducted $460 million from its annual cost base in 2008 and 2009.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries