Corporation has announced first quarter 2001 sales of $1,451 million compared
to $1,644 million in 2000. In line with expectations announced on March 28, Federal-Mogul
reported a first quarter loss of $0.60 per share from operations versus earnings
of $0.86 per share from operations in 2000. Excluded from earnings from operations
were charges for restructuring and impairment. Including these items, Federal-Mogul
reported a first quarter loss of $0.89 per share compared to net earnings of $0.18
Much of the loss was incurred in the Americas and Asia, which reported first
quarter sales of $937 million compared to $1,102 million in 2000. Europe and
Africa reported sales of $514 million compared to $542 million in 2000. The
original equipment market represented 58% of the company’s global sales with
the replacement market accounting for 42% of first quarter sales. Excluding
exchange impacts, original equipment sales were down by 10% and aftermarket
sales were down 7% compared to first quarter 2000.
IMS Corporate Profile:-
"North American demand from both our aftermarket and original equipment customers
was significantly lower. Although we intensified efforts to reduce our cost
structure, we were not able to match the pace and degree of our customer’s volume
declines. A bright spot this quarter was our cash usage, which historically
has run much higher in the first quarter than it did this year,” said Frank
Macher, chief executive officer. "We are making progress on our efforts to
run lean and competitive. Our drive to be low cost, as evidenced by our announced
agreement to acquire WSK Gorzyce to expand our piston manufacturing into Poland,
reflects our company’s global commitment to operate more efficiently.”
Federal-Mogul’s asbestos liability payments were on track as planned at $88
million, down from fourth quarter 2000 levels.
"As promised, we have changed our asbestos management strategy and are actively
pursuing some form of legislative relief,” said Macher. "Our outlook for estimated
asbestos claim payments remains $350 million in 2001.” Analysts have said that
investors have been concerned about the severity of asbestos-related claims.
The company, with more than 50,000 employees, said in late February it planned
to slash 1,000 jobs from its work force, or about 9 percent. About 80 percent
of the jobs were in the United States.
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