Federal-Mogul Corp. (FDML) reported a fourth-quarter net loss of $80 million or $0.81 per share compared to a loss of $239 million or $2.42 per share last year. The company said the net loss in the fourth quarter 2012 was primarily due to lower sales, especially in the European market. The result was further impacted by special legal and commercial agreements, impairment charges and restructuring charges. Adjusted net loss was $41 million.
Net sales decreased to $1.60 billion from $1.65 billion last year. The company said the result includes the impact of 13% lower global commercial and industrial engine production, and a 14% decline in European light vehicle production, compounded by a shift in mix within light vehicle production from higher content diesel to gasoline products.
The company also announced plans to commence an additional multi-site restructuring program involving the potential closure or downsizing of manufacturing facilities, primarily in Western Europe. The plan will be implemented from 2013 through 2015 and involves shifting capacity and equipment to existing lower cost sites in Eastern Europe, Asia and Mexico.
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