Federal-Mogul Corp. (FDML: Quote), 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.
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by RTT Staff Writer
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