U.S. auto parts supplier Federal-Mogul Corp reported a wider first quarter loss as vehicle production plunged and it took charges related to job reductions and other restructuring actions.
The net loss came to $101.1 million, or $1.02 per share, compared with a year-earlier loss of $31.5 million, or 31 cents a share.
The quarterly loss reflected one-time restructuring charges of $38 million related to more than 2,500 job cuts in the quarter and other cost-cutting actions.
Federal-Mogul's sales in Q1 2009 declined 27 percent on a constant dollar basis, or 33 percent including exchange, versus the same period of the prior year. Revenue fell to $1.24 billion from $1.86 billion a year earlier.
"Federal-Mogul's financial results for the first quarter of 2009 reflect the global automotive market downturn and its related effects. The company's Q1 2009 revenue declined, although less than the global markets. We continue to aggressively implement right-sizing actions to have the maximum impact on near-term results, while simultaneously protecting the company's business strategy," said Jose Maria Alapont, President and Chief Executive Officer.
