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Operating Income of $4.8 Million; Affirms Outlook
NEW YORK, Aug. 8, 2013 (GLOBE NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) reported results for its second quarter ended and six months ended June 30, 2013.
Mariano Costamagna, Fuel Systems' CEO, said, "Second quarter results reflected normal seasonal trends as we focused on executional efficiency and competing effectively in difficult markets. Greater DOEM revenues in our Automotive segment than last year, primarily due to an increasingly meaningful contribution from US Automotive, offset lower aftermarket kits sales, which continue to be pressured by a difficult economy and increasing competition, particularly in Europe. Our Industrial mobile and stationery engine business was solid and drove this segment's growth in the quarter, despite softer results from the heavy duty market in Asia. Although our gross profit margin was impacted by these factors, our operating margin in the quarter benefitted by the consolidation of our automotive operational processes, which is streamlining our operating expenses and manufacturing efforts. Overall, Fuel Systems is tracking toward its full year 2013 objectives. For the second half of 2013, we will remain focused on maximizing profitability while continuing to strategically invest in our brands, our technology, our product offerings, and broadening our customer relationships."
Second Quarter 2013 Financial Results
Revenue for the second quarter of 2013 was $111.1 million compared to $109.0 million in the second quarter of 2012. The impact of foreign exchange on second quarter revenue was a negative $1.2 million; excluding the effect of foreign exchange, second quarter revenue increased 3.0% compared to the prior year.
Gross profit for the second quarter of 2013 was $25.8 million, or 23.2% of revenue, compared to $29.1 million, or 26.7% of revenue in the second quarter of 2012, primarily reflecting the combination of the decreased aftermarket contributions and lower margin in the US DOEM market partially offset by a positive impact from the industrial markets. Operating income for the second quarter of 2013 totaled $4.8 million, or 4.3% of revenue, compared to operating income of $6.2 million, or 5.7% of revenue in the second quarter of 2012, reflecting the lower margin of the current business mix partially offset by lower operating expenses.