Affinia Group Inc., a global leader in the on and off-highway replacement products and service industry, reported its financial results for the first quarter ended March 31, 2009.
Net sales were US$457 million for the quarter compared to US$529 million for the same period in 2008. The decrease in sales was primarily a result of a stronger U.S. Dollar in the first quarter of 2009, as compared with the first quarter of 2008, which led to US$54 million of lower sales due to currency translation. The continued global recessionary climate also contributed to lower sales in the quarter.
Gross profit for the quarter was US$85 million. Although gross profit was $10 million lower than in the first quarter of 2008, it was achieved on lower sales and resulted in a gross margin of 19 per cent. This compares with gross profit of US$95 million and a gross margin of 18 per cent for the same period in 2008. The improvement in gross margin was largely due to ongoing cost savings resulting from the comprehensive restructuring program which the company initiated in 2005.
“Although market conditions remain soft due to the continued global economic climate, we have managed our cost structure accordingly and have not only maintained but improved our margins. Our relentless focus on driving out cost and inefficiencies, along with closely managing our balance sheet, have placed the company in a very competitive position as the marketplace and overall economic conditions improve,” stated Terry McCormack, Affinia’s president and chief executive officer.