Fuel Systems Solutions Reports First Quarter 2012 Results
1 days 8 hours 2 minutes ago - GlobeNewswire via Comtex
First Quarter Revenue of $97.4 Million
Loss per Share of $0.06
NEW YORK, May 3, 2012 (GLOBE NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) reported results for its first quarter ended March 31, 2012.
Mariano Costamagna, Fuel Systems' CEO, said, "Our first quarter revenue growth of 7% to $97.4 million versus last year and a gross margin of 23% reflect higher aftermarket volumes and continued solid performance in our industrial business. Operating margin was limited, as expected, as we make the near-term investments required to execute our long-term OEM-driven growth strategy, particularly the first CARB-certified OEM bi-fuel pickup trucks for the US market scheduled for later in the year. Outside the US, our OEM transportation business in India, China and Venezuela remains stable and we expect Thailand to strengthen in the second half of 2012. We remain focused on applying our core technologies and expertise across our 5 key global markets -- passenger transportation, CNG and LPG infrastructure, commercial vehicles, industrial mobile and stationary markets, and auxiliary power units (APU) -- to expand our leading industry position worldwide. Our global platform positions the company to meet the growing demand in the markets we are pursuing."
First Quarter 2012 Financial Results
Revenue for the first quarter of 2012 was $97.4 million compared to $90.8 million in the first quarter of 2011. The revenue increase is primarily attributable to continued strength in the international aftermarkets as well as the industrial and APU markets and growth in compressor volumes partially offset by a decrease in the US automotive market. Foreign exchange negatively impacted revenues by $2.9 million in the first quarter.
Gross profit for the first quarter of 2012 was $22.6 million, or 23% of revenue, compared to $21.6 million, or 24% of revenue in the first quarter of 2011, primarily reflecting the increased volumes described above and increased product costs as the business mix has changed. Operating income for the first quarter of 2012 totaled $1.0 million, or 1% of revenue, compared to an operating income of $3.0 million, or 3% of revenue in the first quarter of 2011, reflecting greater R&D and SG&A expenses than last year's quarter as the Company continues to invest in new technologies.
Net loss for the first quarter of 2012 was $1.2 million, or a loss of $0.06 per diluted share, compared to net income of $0.4 million, or EPS of $0.02 per diluted share, in the first quarter of 2011.
On a segment basis, first quarter 2012 revenues from BRC Operations increased 5% to $61.7 million, compared to $58.5 million from the same quarter a year ago, and revenues from IMPCO Operations increased 9% to $37.6 million compared to $34.3 million the same quarter a year ago. BRC first quarter 2012 operating income was $2.6 million compared to $3.2 million in the same period a year ago, reflecting the increasing mix of aftermarket volumes and an increase in operating expenses. IMPCO first quarter 2012 operating income was $0.6 million compared to operating income of $1.1 million in the same period a year ago, which reflects increased investments in the US automotive market. A table presenting operating segment data can be found in the tables below.
The Company continues to expect growth in European aftermarket products in particular in Italy, Poland and Turkey. The price differential of alternative fuels compared to traditional fuels is expected to continue to act as a very strong catalyst in particular in the European region. Revenue contributions are expected from OEM programs planned to begin to roll out in the second half of the year in Asian countries such as Thailand, China and India, as well as in certain Latin American automotive markets. Modest gross and operating margin expansion continues to be expected from changes in revenue mix and some operating leverage through cost control. Visibility with respect to the still-developing alternative fuel US automotive market will remain low until later in the year when scheduled models launch, with the bulk of revenue and margin contribution expected to be delivered in the second half of 2012. The Company expects to review and update our guidance with the release of our second quarter results.