Italy's Sogefi Returns To Net Profit For Nine-Month Period

Sogefi SpA (SO.MI) returned to a net profit for the first nine months amid a recovery in global car production, and the Italian car parts maker expects more of the same for the rest of the year.

"Although there is some tension in certain commodities, the company should see a further improvement in its net result compared to the first nine months," it said in a statement Tuesday.

"In the later part of the year the levels of business volumes recorded in the third quarter should be confirmed," it added.

The maker of engine filter systems and suspension components reported a net profit of EUR13.5 million for the period against a net loss of EUR8.6 million a year earlier.

Revenue rose 20% to EUR687 million.

Earning before interest, taxes, depreciation and amortization, or Ebitda, doubled to EUR64.5 million.

At 1127 GMT, its stock was up 4.66% at EUR2.47.

"The first nine months of 2010 saw a gradual recovery in world vehicle production levels compared with 2009," it said, citing growth in emerging markets like China and India as well as a recovery in demand in the mature markets like North America.

"In Europe in particular new vehicle production levels were good in the third quarter too as destocking phenomena came to an end, offsetting the decline in sales caused by the end of incentives," it said.

Sogefi's drive to cut costs has also helped. It is restructuring a Dutch filter maker and closing a filter plant in France.

A supplier to manufacturers such as Renault SA (RNO.FR), PSA Peugeot-Citroen SA (UG.FR) and Fiat SpA (F.MI), Sogefi is 57.6% owned by holding company CIR Group SpA (CIR.MI).

French automotive supplier Faurecia SA (EO.FR) was just as optimistic about the year, raising its earnings guidance for 2010. The increase also takes into account the contribution of two acquisitions.

-By Gilles Castonguay, Dow Jones Newswires; +39 02 5821 9908; gilles.castonguay@dowjones.com

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