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
Major League Baseball is talking expansion for the first time in a few decades. Owners stand to make a pretty penny from expansion fees and subsequent television rights. The possibility of a more balanced schedule is also enticing. Strong expansion candidates in the U.S. and Canada are ready... The New York Times is teaming up with Google again to give away Google Cardboard, the virtual reality headsets, but this time only to its "most loyal" digital subscribers. The company said that the digital-only subscribers selected for this distribution were chosen based on the duration of their subscriptions. Oil company Exxon Mobil Corp. on Friday reported a 63 percent fall in profit for the first quarter from last year, while Chevron Corp. reported a loss for the quarter, both on lower revenues. The results were impacted by the fall in crude oil prices and weaker refining margins. However, Exxon Mobil's earnings beat analysts' estimates, while Chevron's loss was wider than their expectations.
comments powered by Disqus
Follow RTT