Carpenter’s Q3 results (ended March 31, 2010) show net sales excluding surcharge down 4% from a year earlier but up 24% from the second quarter. Volume was up 35% from the second quarter with sequential growth in all end markets, and gross profit was US$46.3 million compared with US$49.2 million in the 2009 third quarter.
The company’s automotive market sales showed a marked increase of 30% from a year earlier to US$27.6 million. Excluding surcharge revenue, automotive sales rose 24% as volumes increased 90%. According to Carpenter, the year-over-year volume increase reflects greater share in lower value automotive intake valves along with increased demand for stainless steel fuel system components.
While the company’s aerospace market sales were US$149.4 million in the third quarter, up 2% compared with the same period a year ago, consumer market sales were US$32.8 million, an increase of 55% from the third quarter of fiscal 2009. Both industrial and medical market sales were flat.
Carpenter is optimistic about future results, expecting further improvement in revenue and earnings per share between the third and fourth quarter. It is reportedly on track to meet financial targets for the full year. "Although still below last year's results, we continue to gain momentum in our business that reflects increasing strength in our end markets and initial impacts from our growth strategies," said Gregory A. Pratt, chairman and interim president and CEO. "As demand improves at a variable recovery pace, we are leaning forward to meet the needs of our customers at this critical point in the cycle.
Bodycote said that its revenues for Q1 2010, at constant exchange rates, are unchanged from the same period in 2009, but are 3.4% higher on a like for like basis, excluding sales from sites now closed. At actual exchange rates, revenues were 2.6% lower than in the same period of last year, reflecting the strengthening of sterling year on year. However, continuing trends seen in the final quarter of 2009, the company said there has been a notable month on month improvement in revenue during the first quarter, in contrast to the trends last year. Revenues in constant currencies were 7.8% higher in Q1 2010 than in Q4 2009. In automotive and general industrial, Bodycote said that it has benefitted in all territories from improved car and light truck demand. This sector accounts for 23% of group sales, while heavy truck demand (4% of group sales), has only recently begun to recover. Sales to general industrial customers (39% of group revenues) have also improved – but only modestly. Overall revenues in the automotive & general industrial business, in constant currencies, are higher than Q4 2009 by 9.0% and by 9.6% compared to Q1 2009. The company’s aerospace defence & energy business has seen demand grow slowly but steadily from the low point at the end of summer 2009 and, at constant exchange rates, Q1 2010 revenues were 6.0% higher than in Q4 2009, but 11.3% below Q1 2009.
Federal-Mogul reported more significant results, with sales of US$1.5 billion, 20% higher versus Q1 2009. It had a gross margin of US$254 million or 17.1% and a net income of US$15 million.
“Federal-Mogul’s strong financial results in the first quarter of 2010 demonstrate the benefit of an improving industry and the positive impact of our customer, market and product diversification, combined with the company’s ability to leverage its lower operating cost resulting from restructuring initiatives in 2009,” said José Maria Alapont, president and CEO. “We nearly doubled our EBITDA during Q1 2010 on a sales increase of 20%, demonstrating our capability to convert incremental revenue to greater profitability.”
The company said that its stronger sales performance reflected an overall improvement in global OEM demand. The company’s sales were higher in all regions, with Asia-Pacific original equipment sales up 98% in the quarter versus the prior year, as compared to original equipment market expansion in the region of 46% during Q1 2010 versus Q1 2009.
Miba also had positive results, generating consolidated sales of €311.8 million in the 2009-2010 business year with a positive EBIT of €16.4 million.
The company has also gained market share and invests in new business segments, taking over British coatings specialist Teer Coatings Ltd in April and opening a new sintering site in McConnelsville, Ohio, USA in June.
“The business year 2009-2010 was one of the most challenging in the history of Miba,” said Miba CEO Peter Mitterbauer. “At the beginning of the year we concentrated on the right things: quickly adjusting our cost structure to our customers’ call-off volumes and securing our liquidity for the long term.”
In the 2009-2010 business year, Miba invested €18.7 million in R&D despite a decrease in revenue. This represents a research budget of approximately 6 per cent of the total sales volume. As well as this, €19.5 million was invested within the Miba Group in production capacity and product quality (compared with €43.1 million the previous year). About 72% of investments in the past year went to the sites in the USA and China.
This follows the end of the 2008-2009 business year, in which Miba Sinter Group had revenues of €125.7 million (compared to €135.4 million the previous year), a decrease of 7 per cent. The consistent implementation of measures introduced ahead of schedule, such as the temporary shutdown of systems, led to an increase in profitability despite declining revenue, and EBITDA improved from €18.6 to 19.7 million.
“We have a good overview of the first half of the year, but at the moment it is difficult to foresee how the second half will develop,” said CEO Peter Mitterbauer.
