Federal-Mogul Corporation (FDML) Tops Q1 EPS by 11c

Federal-Mogul Corporation (NASDAQ: FDML) reported Q1 EPS of $0.25, $0.11 better than the analyst estimate of $0.14. Revenue for the quarter came in at $1.84 billion versus the consensus estimate of $1.95 billion.

Federal-Mogul’s Powertrain division maintained strong performance in the quarter with revenue of $1,138 million. The Powertrain division generated approximately 70 percent of its revenue outside of the United States and the resulting currency movements decreased sales by approximately $110 million. On a constant dollar basis, revenue increased 12 percent compared to Q1 2014.

"Federal-Mogul Powertrain in Q1 2015 continued to improve global sales across its core product lines on increased vehicle production and customer demand for our advanced technologies," said Rainer Jueckstock, Federal-Mogul co-CEO and CEO, Powertrain Division. "During Q1, we made capacity investments in important markets, including China and India, and are progressing well with the integration of our newly acquired valve business. While currency movements have had an impact on our financial results during Q1, we continue to perform above market growth. Finally, we are working to improve operational efficiency within our plants and are well underway to improve margin levels."

Federal-Mogul’s Motorparts division reported revenue of $773 million in Q1 2015 compared to $720 million in Q1 2014, an increase of 7 percent, or 15 percent on a constant dollar basis. The increase was driven by sales from the Affinia chassis and the Honeywell brake component acquisitions, net of the loss.

"Federal-Mogul Motorparts continues to make progress on its strategic initiatives. We are ramping up our new full product line distribution centers in southern California and eastern Pennsylvania and are on track to roll-out a new enterprise-wide IT platform in North America beginning in the second quarter. In April, we opened three ‘Garage Gurus’ training and customer support centers in New York, Chicago and Los Angeles. These facilities are a central element of our ‘Tech First’ initiative, which is designed to support repair shops and professional service technicians in multiple ways. Additionally, we are in the planning stages of extending these initiatives to Europe and Asia," said Daniel Ninivaggi, Federal-Mogul co-CEO and CEO, Motorparts Division. "During the quarter, we made significant progress on the integration of the Honeywell and Affinia acquisitions. However, while the Honeywell transition has progressed as planned, the Affinia distribution center integration has been more challenging than expected. We devoted significant resources to address the situation and were able to exit the quarter with substantially improved run-rate performance."

For earnings history and earnings-related data on Federal-Mogul Corporation (FDML) click here.

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