Affinia Group ends third quarter with increased total liquidity of $66 million

By Jennifer Lanning Drey

Portland, Ore., Nov. 13 - Affinia Group Inc. ended the third quarter with total liquidity of $66 million, up from $44 million at the end of the second quarter, Thomas Madden, Affinia's chief financial officer, said Thursday during the company's quarterly earnings conference call.

Long-term debt at Sept. 30 was $597 million, largely unchanged from the end of the prior quarter.

The company was in compliance with all of its debt covenants at the end of the third quarter and expects to remain in compliance with the covenants in the fourth quarter, when its leverage test will step down, Madden said.

Affinia also said it has completed the acquisition of HBM Investment Ltd., a Hong Kong company, and its wholly owned subsidiary, Longkou Haimeng Machinery Co. Ltd.

The acquisition was financed through equity from an investor base and management participation after Affinia suspended plans to syndicate a $340 million asset-based revolver and postponed a $200 million offering senior secured notes offering in September due to market conditions.

Affinia posted third-quarter net sales of $581 million, up from $541 million for the same period in 2007. Net income was $10 million, compared with net income of $4 million in the third quarter of the prior year.

"These are extraordinary days in the U.S. economy, and it is because of these times that we are really quite pleased with our third quarter performance," the company's chief executive officer Terry McCormack, said during the call.

The results reflect continued benefits from Affinia's restructuring initiatives, he said.

Ann Arbor, Mich.-based Affinia is an on- and off-highway replacement products and services company.

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