Auto Suppliers See Large Increase In Earnings In First Nine Months Of 2002.

Year-to-date earnings for auto parts suppliers and retailers improved substantially in the first three quarters of 2002, reflecting apparent cost cutting by the select group of companies examined here. The auto parts companies are segmented into three groups: OE suppliers, Diversified Suppliers (companies that supply the auto as well as other industries), and Aftermarket Suppliers/Retailers (see table A).

Earning per share of the 17 OE suppliers jumped by an average of almost 111 percent from $0.62/share in 2001 to $1.31/share in 2003. Revenues for this group edged higher by only 3.2 percent during the nine-month period.

Intermet's earnings per share paced this group, soaring 3,200 percent from $0.01 in 2001 to $0.33 in 2002, despite slightly declining revenue in 2002.

ArvinMeritor's earnings climbed an impressive 309 percent to $2.21 in 2002 from $0.54 per share in 2001, while the company's revenue grew by 4.6 percent.

Delphi's earnings jumped by 193 percent to $0.40 per share from a loss of $0.43 in the nine-month 2001 period and its revenue climbed by 5 percent, topping $22.9 billion in the 2002 period.

Among diversified suppliers, TRW's earnings per share topped $2.42 during the first nine months of 2002, representing an increase of 1,374 percent over the loss of 0.19 in the year earlier period. TRW achieved this remarkable performance without any growth in revenue. Honeywell, DuPont and Textron also reported higher earnings in the face of declining revenues.

Cooper Tire & Rubber outperformed all others in the aftermarket with earnings soaring more than 3,866 percent on a 2.5 percent rise in revenue. AutoZone was also a standout in this industry segment, with revenue increasing by 5.6 percent and earnings leaping 139 percent to $3.73 per share.