SOUTHFIELD, Mich.—Federal-Mogul Holdings Corp., the diversified auto supplier controlled by longtime Wall Street investor Carl Icahn, posted a $31 million profit in the second quarter, up 41 percent from the year-earlier period, driven by a gain in its powertrain unit.
The increase overcame lower aftermarket sales and the negative impact of currency exchange rates.
The supplier said it posted net sales of $1.92 billion in the second quarter, a 2 percent dip from the year-earlier period.
Federal-Mogul's powertrain unit generated revenue of $1.172 billion in the second quarter, up slightly from $1.167 billion from the year-earlier period. Federal-Mogul credited the rise to an increase in sales partially offset by $7 million from unfavorable currency exchange rates. The company also credited increased sales from the acquisition of a valvetrain business.
“While we are pleased with our overall results for the quarter, our sales were relatively flat during this period,” Rainer Jueckstock, CEO of Federal-Mogul's powertrain unit, said in a statement.
Revenue at the company's aftermarket, or motor parts, division fell 6 percent to $818 million on an $8 million hit from currency exchange rate fluctuations. The supplier's North American aftermarket sales decreased by 10 percent in the second quarter.
