Federal-Mogul to Close More Plants

Federal-Mogul Corp. says it will shutter or downsize an unspecified number of plants, mostly in western Europe, through 2015 because of mounting losses in the region.

The company says the work now done at those facilities will be shifted to its existing facilities in such lower-cost locations as China, Mexico and Poland.

The closings are in addition to the three U.S. factories Federal-Mogul is shutting down by the end of June under a $60 million restructuring it unveiled last year. The company also shed 400 jobs in the fourth quarter, most of them in Europe.

Federal-Mogul narrowed its net loss in the fourth quarter of 2012 to $80 million from $239 million a year earlier. The company blames the deficit on slumping European business and a less favorable mix.

Revenue dropped 4% to $1.6 billion in the October-December period.

For the full year, Federal-Mogul's net loss grew to $117 million from $90 million in 2011. The company attributes most of the decline to lower sales and hefty charges for restructuring and asset impairment. Revenue slid 4% to $6.7 billion.

Federal-Mogul's problems drained $480 million of cash last year, leaving the company with only $467 million in cash on Dec. 31.