Between aggressive cost-cutting and an upturn in production, recent data indicate a turnaround among a number of major automotive suppliers.

“Companies that crank out gears, hoses, gauges and other parts for U.S. automakers are making a comeback,” according to an Associated Press report late last month. AP cites large suppliers having reported millions in profits for the first quarter, “reversing huge los[s]es from early last year when the auto industry nearly collapsed.”

In the last week of April, BorgWarner Inc. swung to a profit and reported a 57 percent sales increase over the first quarter of 2009. The Wall Street Journal notes that the turbocharger maker also raised its earnings forecast, now expecting its 2010 revenue to rise 28 percent to 32 percent instead of its previous estimate for a 15 percent to 19 percent increase.

Axle maker Dana Holding Corp. narrowed its loss to $31 million from $157 million, and Tenneco Inc., which makes shock absorbers, reported a profit of $7 million, compared with a $49 million loss last year.

Gentex Corp., which produces automatic-dimming rearview mirrors and commercial fire protection products, reported record results for the first quarter of 2010.

Federal-Mogul Corp. reported that first-quarter 2010 sales were 20 percent higher than in Q1 2009, reflecting “an overall improvement in global automotive original equipment market demand.”

Lear Corp., which filed for Chapter 11 protection last year and emerged from bankruptcy only last November, posted a $66.1 million profit for the first quarter after losing $265 million in the same period last year.

Magna International Inc., which has major contracts with all three of Detroit’s big automakers, saw its sales increase by 56 percent, earning $223 million after losing $200 million in the first quarter of last year.

Meanwhile, suppliers American Axle & Manufacturing Holdings Inc. (AAM) and Visteon Corp. each reported improved first-quarter results late last month as a result of lower costs and improving sales.

AAM reported a profit of $16.3 million, compared with a loss of $32.7 million a year earlier. Revenue jumped 30 percent to $521.9 million.

“Many companies [...] used the recession to shed staff and excess factory space,” AP explains. “Now they can make money even though U.S. auto sales this year could be more than 30 percent below the 2000 peak of 17.3 million vehicles… .”

“We are seeing the results we expected after cutting our fixed costs by 50 percent over the past two years,” AAM Chief Financial Officer Michael Simonte said in an interview with the Journal. “We are optimistic about the improving economy, but we know it is fragile.”

Visteon, which filed for bankruptcy protection nearly a year ago and is still struggling to exit from Chapter 11, said earnings rose from $2 million to $233 million. The latest quarter included a $237 million gain from the termination of certain post-retirement employee benefits. Revenue rose 41 percent to $1.9 billion.

“We benefited from aggressive actions taken over the past year to keep our cost structure in line with significantly reduced global volumes,” Visteon CEO and President Donald J. Stebbins said in a statement. “Increased global vehicle production, combined with our ongoing operational improvements and cost-reduction efforts, drove our year-over-year financial improvement.”

“Globally, we are converting stronger production volumes and year-over-year revenue growth to the bottom-line as we continue to benefit from cost structure changes and ongoing operational improvements,” Tenneco Chairman and CEO Gregg Sherrill said in a statement. “We’re also seeing strengthening in our global aftermarket, which provides good balance to our business.”

According to a statement from Dana, cost savings of more than $50 million, including reductions in conversion and material costs, contributed substantially to the axle maker’s quarterly gains.

“I think the job the suppliers did to lower their costs and reposition themselves is nothing less than remarkable in the environment,” Jim Gillette, an analyst with CSM Worldwide, which advises parts suppliers, told AP. “The suppliers faced reality and cut very sharply.”

Many suppliers also credit a surge in auto production and sales for the current revival.

Customer production volumes for the North American light truck and SUV programs that AAM currently supports for General Motors Co. and Chrysler Group LLC were up about 25 percent in the first quarter of 2010 compared to the first quarter of 2009, AAM said in a statement. The automotive supplier also said the company’s non-GM sales of $124.1 million represented nearly 24 percent of total sales.

Approximately 27 percent of Visteon’s first-quarter product sales were to Ford Motor Co., 24 percent were to Hyundai-Kia, with Renault-Nissan and PSA Peugeot-Citroën each accounting for about 7 percent of product sales. On a regional basis, Europe accounted for 39 percent of Visteon’s total product sales, with Asia representing 35 percent, North America 20 percent and South America 6 percent.

Ford has entered a period of “sustained, profitable growth” after weathering the recession and years of painful restructuring. “This was one of the greatest financial turnarounds in our 106 year history…and the beginning of a sustained period of profitable growth and product excellence for Ford,” Chairman Bill Ford said on May 13.

Chrysler’s CEO also recently expressed optimism about the automaker’s future. “Last month, as Chrysler reported a $143 million operating profit in the first quarter, [Sergio] Marchionne projected that the carmaker would break even or earn as much as $200 million for the year,” the New York Times says. Last week, he said the company was on pace to “blow the lid off that number.”

The restructured GM reported this week that it swung to a first-quarter profit of $865 million, from a loss of $6 billion in the year-ago period for its predecessor company. Revenue rose from $22.4 billion to $31.5 billion.

Both Steve Rattner — who ran the task force which oversaw GM and Chrysler through government-funded bankruptcy protection last year — and Ron Bloom — who now oversees the government’s autos investment as President Obama’s senior counselor for manufacturing — last week said that U.S. automakers are moving in the right direction, but progress is still needed.

CSM forecasts U.S. light-vehicle sales will rise to 11.8 million this year, up from last year’s 10.4 million. Through March, they’re up nearly 16 percent over the first quarter of 2009.

Resources

Profits Raise U.S. Auto Parts Makers from Near Death
by Tom Krisher
The Associated Press, April 30, 2010

U.S. Auto Suppliers See a Comeback
by Joe Szczesny
Agence France-Presse, May 7, 2010

BorgWarner Posts Strong First Quarter Earnings of $0.63 Per Diluted Share
BorgWarner, April 29, 2010

Auto-Parts Firms’ Results Improve
by Jeff Bennett
The Wall Street Journal, May 1, 2010

Dana Holding Corporation Reports First-Quarter Results
Dana Holding Corp., April 29, 2010

Tenneco Reports First Quarter Results
Tenneco Inc., April 29, 2010

Gentex Reports Record Net Sales and Net Income
Gentex Corporation, April 22, 2010

Federal-Mogul Reports another Strong Quarter of Improved Earnings and Cash Flow in Q1 2010
Federal-Mogul Corporation, April 28, 2010

Lear Reports First Quarter Financial Results and Improves 2010 Outlook
Lear Corp., May 6, 2010

Magna Announces First Quarter Results
Magna International Inc., May 6, 2010

Visteon Announces First-Quarter 2010 Results
Visteon Corp., April 30, 2010

Ford Forecasts Sustained, Profitable Growth
by Mira Oberman
Agence France-Presse, May 13, 2010

Chrysler’s Chief Offers an Upbeat Assessment
by Nick Bunkley
The New York Times, May 10, 2010

GM Reports First Quarter 2010 Results
General Motors Co., May 17, 2010

General Motors Swings to Profit of $865 Million
by Steve Gelsi
MarketWatch, May 17, 2010

Ex-Auto Czar Says U.S. Could Get $40B Back from GM
by Tom Krisher and Tim Martin
The Associated Press, May 10, 2010