Affinia Reports Third Quarter Financial Results for 2009

Affinia Group Inc. reported its financial results for the third quarter and nine months ended September 30, 2009.
Net sales were US$542 million for the quarter compared to US$581 million for the same period in 2008. The decrease in sales of US$39 million was primarily the result of US$37 million of unfavourable foreign currency translation.
Gross profit for the third quarter was US$105 million, as compared to US$118 million for the same period in 2008. Gross margin declined to 19 per cent compared with 20 per cent in the third quarter of 2008. The reduction in gross margin was primarily due to adverse currency effects, and lower sales volume.
The company also reported a net loss for the third quarter of US$3 million in comparison to net income of US$10 million in the third quarter of 2008. The reduction in net income was due mainly to the decrease in gross margin and an US$11 million increase in interest expense mostly offset by a US$10 million lower tax provision.
“Our comprehensive restructuring program has resulted in a strong low cost country manufacturing base which has allowed us to remain cost competitive even through this economic downturn, and positions the company well for long term growth,” said Terry McCormack, Affinia’s president and chief executive officer.