Federal-Mogul reports tough fourth quarter
U.S. auto parts supplier Federal-Mogul reported a steep fourth-quarter loss on Feb. 24, hit by sharp production cuts by automakers reeling from the weakest demand in decades.
The net loss came to $529.6 million, or $5.35 per share, compared with a year-earlier profit of $1.39 billion, or $15.23 a share. Revenue fell 25 percent to $1.32 billion.
Federal-Mogul, which emerged from bankruptcy protection in late 2007, has been in the process of closing several facilities and shedding 4,000 jobs, or 8 percent of its global workforce. The company said it had more than $1.3 billion of available liquidity.
On the positive side, full year 2008 sales came to $6.9 billion, in line with 2007, despite the drop in sales of $430 million in the fourth quarter of 2008.
"Federal-Mogul's sales and operating performance in the first three quarters of the year, combined with actions to manage the impact of the global market downturn resulted in solid sales, annual gross margin and operational EBITDA, coupled with strong cash flow in the fourth quarter and for the full year," said Jose Maria Alapont, president and CEO.
Federal-Mogul makes pistons, spark plugs, windshield wiper blades, brake pads and dozens of other products for automotive manufacturers and the replacement parts market.