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Federal-Mogul Swings to Quarterly Profit
Federal-Mogul Corp. posted net earnings of $56 million for the second quarter of 2013 compared with a $59 million loss a year earlier.
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Federal-Mogul Corp. posted net earnings of $56 million for the second quarter of 2013 compared with a $59 million loss a year earlier. Those results marked the company's first year-over-year profit in five quarters.
Revenue rose 6% to $1.8 billion on sales gains at both its powertrain and vehicle components unit. Both operations increased European revenues despite declining vehicle sales in that region.
Operating income excluding a $119 million one-time charge in the April-March period of 2012 climbed 4% to $163 million. Operating return on revenue dipped to 9.2% from 9.3%.
Federal-Mogul notes that asset sales, plant closings and other cost-cutting moves enabled it to generate $73 million of free cash flow in the latest quarter compared with a $105 million cash drain a year earlier.
The company says the $500 million it raised from an equity rights offering earlier this month will help it accomplish the planned refinancing of its debt.
Separately, billionaire investor Mario Gabelli's GAMCO Investors reports that it has boosted its stake in Federal Mogul to 5% from 3.1% in March.
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