18th May 2006 - Affinia Group Announces First Quarter 2006 Results

Affinia Group Inc. has announced first quarter financial results for 2006. For the quarter ended March 31, 2006, revenue was $548 million, which represents an increase of nine percent over the first quarter of 2005 revenue of $502 million. This increase was primarily driven by increased volume, positive economic effects and the favorable impact of foreign currency translation. The net loss for the quarter ended March 31, 2006 was $6 million compared to a loss of $17 million for the quarter ended March 31, 2005. This improvement is primarily attributable to improved gross margin of $19 million, the loss of $14 million (net of tax) on the sale of Beck Arnley in the first quarter of 2005 offset by an increase in selling, general and administrative expenses of $18 million. The increase in selling, general and administrative expenses primarily related to our restructuring programs, expenses associated with establishing a corporate office, increased revenue and professional fees associated with the ongoing implementation of Sarbanes-Oxley.

Thomas Madden, Affinia's Chief Financial Officer, stated, "We are pleased with our revenue growth in the first quarter and the opportunity to continue to support our customers with competitive quality products. Our restructuring program will insure our ability to meet customer expectations in the global marketplace."