Federal-Mogul posts a net loss of $59 million in the second quarter

Article by Christian A., on August 1, 2012

Because of the restructuring of Federal-Mogul Corp.’s brake friction business and the charges that resulted, the auto parts supplier experienced a quarterly loss. Last June, the company said that it will restructure some of its facilities to lessen capacity. In the second quarter, it incurred an impairment charge of $119 million.

Federal-Mogul is controlled by activist investor Carl Icahn. It reported a net loss of $59 million, or 60 cents per share, attributable to the company. A year ago, it posted a profit of $64 million, or 64 cents per share. The company said that without the impairment charges, the net income would only have been $53 million in the quarter.

Based on these figures, the company earned 54 cents a share, said Thomson Reuters, which compares with the average profit expectation of 56 cents per share from two analysts. Its revenue for the quarter that ended June 30 declined by 6% to $1.7 billion, as it became affected by the decrease in the light vehicle production in Europe.

What analysts predicted was a revenue of $1.84 billion. Federal-Mogul said that its full-year revenue would benefit from the recent acquisition of BorgWarner Inc.'s spark plug business. The Champion spark plug brand is already owned by Federal-Mogul. The company said that these acquired units will contribute about $80 million annualized sales and raise Federal-Mogul's annual spark plug production capacity to more than 350 million annually.

Topics: federal mogul

If you liked the article, share on:

Comments

Recommended

The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Subaru has already announced that the all new Impreza will be out by fall this year. The 2018 model year not only gets a number of new upgrades, but it...
by - July 21, 2017
Do you ever wonder what challenges automakers have in selling limited edition cars? It’s different for each company but it can get stressful if the demand is high instead of...
by - July 21, 2017
Alpine is said to be developing an SUV which is believed to be the Porsche Macan’s closest rival. According to AutoExpress, the newly revived performance brand has been looking to...
by - July 20, 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