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Mr. Alapont?José Maria Alapont Thank you, David, and good morning, everybody. Federal-Mogul has record third quarter sales at over $1.7 billion which is $188 million or 12% more than the same quarter last year. This is our 10th consecutive quarter of sustainable global profitable growth. We improved gross margin by 11% versus the same period last year to $263 million or 15.2% of sales, a $25 million increase. The company continues to operate efficiently at higher global utilization rates by delivering on a strong sales demand on our regional equipment markets. We also continued to gain revenue for additional technology content and have implemented actions to offset the challenge of higher raw material costs in several areas. Federal-Mogul SG&A costs were $172 million, or 9.9%, an improvement from the 10.6% of sales in the same period last year. We continue to emphasize SG&A efficiency in order to place maximum resources on developing our advanced technology portfolio as well as expanding in fast growing markets. We have, since 2005, improved SG&A spend by more than 5 percentage points. The company had net income of $34 million which compares favorably to an adjusted net income of $29 million when excluding the $24 million on non-cash income from OPEB curtailment gains in the last year reporting. Our operational EBITDA was $166 million in the third quarter, or 9.6% of sales, another strong performance. This operating result demonstrates the success of the company investing in developing new technology for fuel economy, emission reduction and vehicle safety to drive growth faster than the markets. We supported several new original equipment global program launches and higher customer demand as well as continue to expand our new mid-grade and private label product lines for the aftermarket. These investments plus $105 million in capital expenditure for additional capacity and new program launches in the quarter resulted in a cash outflow of $71 million, still Federal-Mogul maintained it's $1.5 billion in liquidity including $1 billion in cash and $0.5 billion undrawn revolver at the end of the quarter.
If we move to Page 5 and as I mentioned it, Federal-Mogul had a record third quarter sales up 12% versus a global market up 3%. This was due to strong demand in the light and commercial vehicle markets as well as higher demand for our leading technology and innovation. We have consistently outperformed the original equipment and vehicle markets, and we have also grown in the energy industrial transfer markets where, since 2009, our sales have increased by 14%.Company sales to global original equipment vehicle makers increased by 19% with sales up in U.S. by 10%, Europe 20%. BRIC and rest of the world were up 27%, with a specially strong increase in China, 29% and in India 35%. The global aftermarket business segment reported 1% higher sales as the decline in the U.S. has narrowed to 5%. This offsets by increases of 7% in Europe, while the BRIC and the rest of the world markets were 21% led by China, 14% and India 18%. We are beginning to see the results of our aftermarket business model strategy which includes a strong support for our premium brands while simultaneously making investments to develop leadership in new mid-grade and private label product lines. We have secured in the last 12 months more than $120 million in new contracts in mid-grade and private label categories with leading aftermarket distributors. Moving to Page 6. This quarter's performance strengthens our trend of consistently winning global market share and growing faster than the underlying market rate. Federal-Mogul original equipment sales increased 17% during the last 12 months and have exceeded the global vehicle sales growth rate of 6% during the same period. This strong performance has occurred across all markets. The company's original equipment business segments have driven strong sales growth of 16% in the U.S. versus the market 11%, Europe up 15% versus the market of 1% and the Federal-Mogul sales in the BRIC and the rest of the world were up 22% in comparison with the market up 12%. With our growth in China up 23%, we're -- while the Chinese market went up only 9%. Sales in India have increased 31% and far exceeded the market growth of 13%. Read the rest of this transcript for free on seekingalpha.com