This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fuel Systems Solutions' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Our new organizational structure provide key advantages, improving attention and response to the customers feedback, encouraging innovation and R&D coordination, managing operation more efficiently and driving cost efficiencies across the organization.

Today, we reported second quarter revenues of over $109 million, reflected an increase of our automotive volume, particularly DOEM volumes in Italy. This higher delayed OEM activities particularly benefited our gross margin of 27%.

During the quarter, despite of continued near-term investment in technologies in order to continue to execute our long-term growth strategies, our operating margin is slightly improved due to revenue shift towards delayed OEM.

Now I turn the call over to Tim Standke for an update of both division business. Tim?

Tim Standke

Thank you, Mariano. Good morning, everyone. I will start with the automotive division, which consists of the companies OEM passenger and light duty commercial transportation, automotive aftermarket, transportation infrastructure operations as well as the U.S. automotive unit, which was formerly a part of the IMPCO division.

Automotive posted second quarter 2012 revenues of $78.3 million, a decrease of 6%. In constant currency, the automotive revenue increased 4.2%. Operating margins improved to 7% versus 5% in Q2 2012, due to a shift in revenue mix for delayed OEM revenue to last year.

In Europe, delayed OEM volumes increased 66% to an average of 3300 units per month and had a positive impact on our profitability. This is particularly true in Italy. Chevrolet volumes were strongest with Nissan, Mitsubishi, Hyundai, Kia, Ssangyong and Ford all contributed. The price differential between alternative and traditional fuels continues to drive demand and offer an attractive payback in this region.

As a result, OEMs are expanding the number of CNG and LPG vehicles they offer. Our competitive positioning in this region remains very strong. We are unique in offering a complete systems that generate significantly higher revenue per vehicles then selling much larger volumes of components to OEMs.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs