Fuel Systems posts 31 percent jump in 3rd-quarter profit, shares soar
Associated Press
11/05/09 11:45 AM EST
SANTA ANA, CALIF. — Fuel Systems Solutions Inc. said Thursday its third-quarter profit rose 31 percent as strong demand for alternative-fueled vehicles boosted sales.
The results came in well ahead of Wall Street predictions and the company also released a strong 2010 sales guidance. Fuel Systems shares surged rose $8.76, or 26 percent, to $42.56 in midday trading after jumping as high as $42.65 earlier in the session.
The company, which makes parts for fuel-delivery systems sold to automakers and bus companies, earned $15.5 million, or 88 cents per share, up from $11.9 million, or 75 cents per share, in the year-ago period.
The recent quarter's results included a gain of $2 million, or 11 cents per share, from the acquisition of the remaining 50 percent of a joint venture in Brazil.
Revenue increased 10 percent to $116.2 million from $105.5 million.
Analysts polled by Thomson Reuters expected a profit of 43 cents per share on $104.3 million in revenue.
Fuel Systems said its results were boosted by strong demand for alternative fueled vehicles, especially in Italy. That was partially offset by weakness at its industrial business and the negative effects of foreign exchange rates.
The company said it installed a record 47,000 systems during the third quarter and is on track to exceed 170,000 installations this year.
Despite the soft global economy, demand has been picking up in the second half of this year and as a result Fuel Systems said it expects to post 2009 sales of between $415 million and $425 million.
Analysts, on average, expect sales of $379.7 million for the year.
