logo
Share SHARE
FONT-SIZE Plus   Neg

Federal-Mogul Posts Loss In Q4 Amid Weak Europe - Update

Federal-Mogul Corp. (FDML), a supplier of powertrain and safety technologies, Wednesday reported a narrower loss for the fourth quarter, as the prior year included hefty charges. Adjusted loss reflected lower sales, especially in the European market.

Net loss attributable to the company narrowed to $80 million or $0.81 per share from $239 million or $2.42 per share in the prior year.

Results of both periods included items, with the prior year recording $304 million for assets to fair value.

Adjusted net loss attributable to Federal-Mogul was $41 million while it was a profit of $52 million last year.

Sales dropped to $1.595 billion from $1.654 billion in the prior year.

Powertrain Segment revenue slid 6 percent to $973 million, while the Vehicle Component Solutions Segment's revenue slipped 2 percent to $709 million.

According the company, the latest results include the impact of 13 percent lower global commercial and industrial engine production, and a 14 percent decline in European light vehicle production. This was compounded by a shift in mix within light vehicle production from higher content diesel to gasoline products.

Further, the company announced plans to commence an additional multi-site restructuring program involving the closure or downsizing of manufacturing facilities, primarily in Western Europe. The plan will be implemented from 2013 through 2015. It involves shifting capacity and equipment to existing lower cost sites in Eastern Europe, Asia and Mexico.

FDML closed at $9.08 on Tuesday.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016. German lender Commerzbank AG reported a profit in its fourth quarter, compared to last year's loss, particularly benefited by lower loan loss provisions. Chairman Martin Blessing noted that its for the first time in five years that the bank attained a net profit of more than 1 billion euros. Looking ahead, for fiscal 2016, the bank expects a slight increase in net profit from the prior year. Activision Blizzard Inc. (ATVI) on Thursday reported a drop in profit for the fourth quarter, as revenues declined reflecting weak demand for Skylanders SuperChargers and Guitar Hero Live. The video game publisher's profit and revenues fell short of Wall Street estimates. Moving ahead, the company detailed...
comments powered by Disqus
Follow RTT