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

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 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