Fuel Systems Solutions Reports Third Quarter 2010 Results

– Third Quarter 2010 Revenue of $86.1 Million and EPS of $0.29 –

– IMPCO Division Revenue and Profitability Expansion Continue –

NEW YORK, Nov. 4, 2010 (GLOBE NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) reported results for its third quarter and nine months ended September 30, 2010.

Mariano Costamagna, Fuel Systems' CEO, said, "We achieved third quarter revenue of $86.1 million and maintained gross margins of 29% as improvements in our Industrial business, buoyed by strength in Asia and our other IMPCO markets, helped counteract the impact of seasonality and softer new vehicle market demand in Europe."

Matthew Beale, Fuel Systems' President, CFO and Secretary, said, "We continue to invest in our future growth opportunities and broaden the scope of our transportation business while we manage our business to accommodate current demand levels. The geographic and end market balance in our business generated a more even revenue distribution this quarter, with our IMPCO business delivering an 82% increase in revenue compared to the same period a year ago, and achieving operating profitability for the second consecutive quarter. Our U.S. Automotive division continues to leverage its strong position with OEMs. Our acquisitions of PCI and EvoTek position us to be strong partners with fleet customers and manufacturers as they roll out CNG and LPG versions of key fleet vehicles. The integration of the acquisitions is on track and will complement our efforts in the North American automotive markets."

Third Quarter 2010 Financial Results

Revenue for the third quarter of 2010 was $86.1 million, compared to $116.2 million in the third quarter of 2009. Third quarter 2010 revenue was negatively impacted by approximately $9.7 million of foreign exchange rate fluctuations. The revenue decrease is primarily attributable to a lower level of revenue from DOEM installations after the expiration of the Italian government's 2009 incentive program, partially offset by an increase in the industrial and other automotive business and the contribution of acquisitions made in 2009. Gross profit for the third quarter 2010 was $24.8 million, or 29% of revenue, compared to $39.4 million, or 34% of revenue a year ago, reflecting the reduction in DOEM volumes versus last year partially offset by improved margins in the industrial and other automotive business. Operating income for the period totaled $7.5 million, or 9% of revenue, compared to $23.1 million, or 20% of revenue, in the third quarter of 2009, reflecting lower volumes and gross margin and greater R&D expenses than last year's quarter as the Company invested in new technologies, partially offset by lower SG&A. Net income for the third quarter 2010 was $5.2 million, or $0.29 per diluted share, compared to $15.5 million, or $0.88 per diluted share in the third quarter 2009.