FAG India Reports Record First Quarter 2006

FAG Bearings India Ltd. (a publicly-traded, 51.3% owned subsidiary of INA/FAG Holdings, Germany) reported record sales and earnings for the first quarter of 2006, ended March 31. Sales for the quarter were Rs 1.2 billion (USD $26.6 million), up 36% over Rs 898 million ($20 million) for the same period in 2005. Net after tax profit hit Rs 180.4 million, up more than 105% from 2005's Rs 88 million. The corresponding net margin in 2006 was 14.7%, from 9.8% in first quarter 2005. FBIL is a key part of India's bearing industry, with a 19% overall market share. In specific markets, it holds much larger shares -- 50% of India's cylindrical and spherical roller bearings, for example. FAG India exports approximately 18% of production to other INA and FAG operations worldwide, and the parent company in Germany is aggressively expanding that side of its business to take advantage of India's cost advantage. In India, FBIL sells primarily to OEM customers, and the OEM auto industry accounts for close to 50% of its sales. Automotive and industrial customers include ABB, Bajaj Auto, Crompton Greaves, Indian Railways, Maruti Udyog, Ford, General Motors, Hyundai, Ashok Leyland, Siemens, and Punjab Tractors.