Struggling Federal-Mogul Corporation today reported reported a third quarter net loss of $73 million or $.89 per share, compared to a net loss of $810 million or $10.31 per share in 2001.
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Third quarter 2002 sales of $US1,345 million were up 4% compared to $1,289 million in 2001.
Pre-tax profit from operations was $13 million compared to a loss of $87 million in third quarter 2001.
Operating results for third quarter 2002 and 2001 exclude restructuring and impairment charges, Chapter 11 and administration related expenses, and net losses from divestitures. In addition, for the third quarter of 2001, operating results exclude tax valuation allowances and gains on debt-to-equity swaps.
“We remain on target with our operational improvements and we are achieving our productivity goals as demonstrated by our improved operating margin,” said chairman and chief executive officer Frank Macher.
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By GlobalData“We are strengthening our future competitive advantage through our investment today in new technology centres both in Yokohama, Japan and Plymouth, Michigan. Our customers are responding very favourably to the new products we have recently launched [and] I’m very excited about the products we have currently under development.”
Third quarter 2002 cash flow from operations, net of capital expenditures, was a usage of $18 million compared to a usage of $231 million for third quarter 2001.
By geographic region, total third quarter 2002 sales were: 61%, or $820 million, in North America; 37% or $504 million, in Europe; and 2% or $21 million in the Asia Pacific region.
Sales of original equipment parts totalled 56% of the company’s third quarter 2002 sales or $747 million compared with $677 million in 2001.
Original equipment volume was up significantly in global friction products and pistons. By geographic region, third quarter 2002 original equipment sales were 49% in Europe, 48% in North America and 3% in the Asia Pacific region.
Sales of replacement parts to aftermarket customers totaled 44% of the company’s third quarter 2002 sales or $598 million compared with $612 million in 2001.
Softness in the North American aftermarket, especially in seasonal products impacted negatively due to the mild and dry weather, accounted for most of the shortfall.
By geographic region, third quarter 2002 aftermarket sales were 77% in North America and 23% in Europe.
