Federal-Mogul trims Q4 net loss to $19 million
Diversified auto parts supplier Federal-Mogul Corp. reported a fourth-quarter net loss of $19 million, a $61 million improvement over the same quarter in 2012, the company said Thursday, showing signs of recovery since emerging from bankruptcy in 2008.
The company, which counts on Europe for more than half of its sales, said its fourth-quarter sales rose to $1.7 billion, 10 percent higher than in the fourth quarter of 2012.
For all of 2013, the company controlled by powerful Wall Street investor Carl Icahn reported net income of $41 million, compared with a net loss of $117 million for 2012, a year-over-year improvement of $158 million.
Co-CEO Rainer Jueckstock said the results for the quarter and 2013 reflect improved operating performance, strengthening global markets and market share gains, particularly in the powertrain segment.
"More than 35 percent of Powertrain's sales growth during the quarter is attributable to new customer contracts," he said in the company's earnings release.
Federal-Mogul, since emerging from bankruptcy, has struggled with profitability, reporting net losses of $45 million in 2009 and $117 million in 2012.
This month the company named Daniel Ninivaggi as co-CEO and CEO of its aftermarket group. Ninivaggi replaced Kevin Freeland, who left the company for personal reasons.
Federal-Mogul, of suburban Detroit, ranks No. 50 on the Automotive News list of the top 100 global suppliers, with estimated worldwide parts sales to automakers of $4.3 billion in 2012.
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