Federal-Mogul records $239 million fourth-quarter net loss in 2011

Article by Anita Panait, on February 29, 2012

Federal-Mogul Corp. dipped into the red in the fourth quarter of 2011 after a $304 million one-time impairment charge caused the automotive supplier to post a fourth quarter net loss of $239 million, or $2.42 a share. This was in sharp contrast to its fourth quarter results in 2010, when Federal-Mogul recorded a net profit of $45 million, or 45 cents a share.

 The impairment charge was caused by a decrease in the value of some of the company’s product lines. The company meanwhile posted a five-percent hike in revenues to $1.7 billion. Setting aside one-time items, the company posted a 2011 fourth quarter profit of $51 million, or 51 cents per share, compared to its 2010 fourth quarter profit of $38 million, or 38 cents per share.

According to the company, the one-time impairment charge came from writing down the “goodwill” value of certain assets and could have been offset by increased values of other business units. However, accounting rules prevented the company from recognizing the gains in the value of one reporting unit to offset impairment charges in another reporting unit.

For the full year 2011, Federal-Mogul posted a net loss of $90 million compared to a net loss of $161 million in 2010. Again, the company said that setting aside one-time gain and charges, the company posted a $203 million net income in 2011 compared with $134 million in 2010.

Annual revenues continue to uplift the company, surging 11% to $6.9 billion. Federal-Mogul said its financial results reflected an increase in sales to original equipment customers and offset costs from higher volumes and raw materials. The company posted record sales in original equipment with $4.6 billion for 2011, an 18-percent hike from 2010.

Topics: federal mogul

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries