TORONTO - Parts maker Tesma International Inc. said on Tuesday its first-quarter earnings rose on stronger North American and European sales, and said it expects a 10 percent increase in sales this year despite slowing vehicle production by its customers.
Tesma, which makes engine and transmission parts and is one of the Magna International Inc. group of companies, reported a profit of $16.3 million, or 50 cents a share, for the period ended March 31. This was up from a profit $13.9 million, or 47 cents a share, for the corresponding period a year earlier.
That beat an average estimate of 48 cents a share among analysts polled by Thomson First Call.
The Concord, Ontario-based company said last year it would start reporting in U.S. dollars instead of Canadian beginning with its first-quarter results.
Sales for the period were $267.4 million, up from $211.2 million last year.
The 26.6 percent jump in sales was pushed by a 17 percent growth in content per vehicle in North America and 19 percent in Europe.
However, the company said it was "cautious" about the short-term outlook, citing an expected slowdown in automaker production volumes.
The company expects North American auto output to slip to 4.1 million units in the second quarter of this year, well off the record volumes for the same period last year. It sees a similar decline in Europe.