Michigan suppliers TRW Automotive Holdings Corp. and BorgWarner Inc. reported higher profits between April and June, as both companies grew sales overseas. Sales outside the United States were pivotal for several suppliers that managed to eke out a profit in the second quarter of a year in which U.S. light-vehicle sales are expected to be the worst in a decade or more.
Federal-Mogul Corp. reported a 74% drop in profits between July and September, a quarter that has shaped up to be one of the most challenging for automotive firms in more than a decade.
Lear Corp. profits plummeted in the second quarter on production cuts of pickups and SUVs, prompting the Southfield seatmaker to cut its expectations for 2008 sales.
Profits plummeted 97% at automotive seatmaker Johnson Controls Inc. between July and September compared with the same period a year ago, and 18% during the last 12 months, as light-vehicle sales dropped, and the supplier launched a restructuring program to cope with that decline.
Two key suppliers to General Motors said Friday that they have emerged from last year's automotive malaise, posting a profit for the fourth quarter and anticipating sales growth in 2010. Southfield-based Lear, which restructured its debt in a four-month bankruptcy reorganization last year, reported a $1.2-billion profit during the fourth quarter.
