Federal-Mogul posts $5 million net loss in Q2 as revenue rises
Auto supplier Federal-Mogul Corp. today reported a $5 million net loss after factoring in one-time charges, along with a $128 million revenue gain for the second quarter.
The company, controlled by longtime Wall Street investor Carl Icahn, had one-time restructuring and impairment charges of $32 million and posted a $3 million loss from continuing operations. The company posted net income of $56 million during the same quarter last year.
Revenue improved 7 percent to $1.9 billion with operating income of $100 million -- up from $90 million in the second quarter of 2013.
Federal-Mogul’s Powertrain Division saw a $90 million revenue increase, generating $1.2 billion. Revenue was up 12 percent in North America and 5 percent in Europe.
“The improvements in Federal-Mogul Powertrain Division’s Q2 revenue … were driven largely by volume increases and market share gains across all regions,” Rainer Jueckstock, CEO of the Federal-Mogul Powertrain Division, said in a press release. “We also continue to make operational progress by restructuring and realigning our manufacturing footprint to improve our cost competitiveness.”
The company also said in the earnings report that the acquisition of Affinia’s chassis component business and assets of the Honeywell Friction Materials business were successfully completed on May 1 and July 11, respectively.
Federal-Mogul produces a variety of engine parts, including cylinder rings, pistons and bearings. It also makes several brand-name aftermarket parts such as Champion spark plugs and ANCO wiper blades.
The supplier ranks No. 50 on the Automotive News list of top 100 global suppliers, with estimated worldwide parts sales to automakers of $4.2 billion in 2013.