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Federal-Mogul Posts Quarterly Loss
Federal-Mogul Corp. recorded a $34 million net loss in the first quarter of this year compared with a $32 million profit in the same period in 2012.
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Federal-Mogul Corp. recorded a $34 million net loss in the first quarter of this year compared with a $32 million profit in the same period in 2012. Revenue dipped 2% to $1.7 billion.
The company attributes the declines to Europe's slumping light vehicle sales, lower global commercial vehicle output, $8 million in restructuring costs and a $21 million loss on discontinued operations.
Federal-Mogul's operating earnings before interest, taxes, depreciation and amortization in the quarter dropped 15% year over year to $141 million.
But analysts were cheered by the company's improvement from the third and fourth quarters of 2012, when operating EBITDA was $72 million and $69 million, respectively. They say the gains show that Federal-Mogul's turnaround efforts are starting to pay off.
The company plans to book an additional $72 million in restructuring charges this year.
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