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Federal-Mogul earnings jump on higher global sales

July 29, 2010 - 8:16 am ET
(REUTERS) -- Auto parts maker Federal-Mogul Corp. reported a sharp rise in quarterly profit as the global auto industry continued to recover.

Net income during the second quarter rose to $49 million, up from $3 million.

Revenues rose 23 percent to $1.6 billion, up from $1.3 billion.

The company cited market share gains in all regions and markets, in addition to a significant improvement in global automotive original equipment light vehicle and commercial vehicle market demand, for the increase in sales.

The company makes pistons, bearings, windshield wipers and other automotive parts. In North America, revenues rose 81 percent, while sales in Asia rose 46 percent. In Europe, revenue increased 31 percent.

The company restructured in 2009, cutting $460 million from its annual cost base. It is controlled by billionaire investor Carl Icahn.

Federal-Mogul said it generated $47 million in cash during the quarter, of which it used $39 million to acquire piston ring-maker Daros Group. Contact Automotive News

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