MONTREAL (Reuters) -- Second-quarter profit at parts maker Decoma International Inc. rose on higher sales despite lower production volumes at North America's biggest auto makers, the company said on Monday.
Decoma, which makes exterior car parts such as plastic bumpers and body panels and is controlled by auto parts company Magna International Inc. also increased its quarterly dividend by 17 percent and raised its profit forecast for the year.
The Concord, Ontario, company said profit was $33.9 million, up from a profit of $27.4 million in the year earlier period.
Sales rose 5 percent to $592 million from $566 million despite lower North American auto production volumes.
"Growth in our average content per vehicle in both North America and Europe during the quarter helped us to offset the impact on our sales from lower North American production volumes," Al Power, president and chief executive, said in a statement.
Second-quarter vehicle production volumes fell 9 percent in North America and were level in Europe, Decoma said. The company's average content per vehicle rose 12 percent to $95 in North America and 21 percent to $35 in Europe, it said.
North American content growth benefited from the translation of Canadian dollar sales into U.S. dollars and the acquisition of Federal Mogul's original equipment automotive lighting operations, the company said.
Decoma raised the quarterly dividend on its class A and B shares by 17 percent to 7 cents, payable Sept. 15 to shareholders of record on Aug. 29.
Looking forward, the company forecast a further decline production volumes for light vehicles in North America and Europe by about 2 percent this year, but said it expects per-vehicle content sales of $90 to $92 in North America and $39 to $41 in Europe.
The company said it expects 2003 year sales of $2.26 billion to $2.36 billion, above its earlier forecast for profit of 84 cents to 98 cents a share. Decoma estimated capital spending for the year at $195 million.