Federal-Mogul Corp. improved its sales and gross margin from last years fourth quarter, but charges forced a net loss.
President and CEO Charles Chip McClure also said he hopes the company emerges from Chapter 11 bankruptcy protection this year.
The Southfield, Mich.-based auto supplier reported a net loss of $120 million or $1.39 a share on revenue of $1.4 billion for the quarter that ended Dec. 31. That includes the effect of $102 million in asset-impairment charges and $39 million to cover an asbestos insurance settlement. The results compare with a net loss of $112.5 million or $1.33 on revenue of $1.2 billion in the fourth quarter of 2002.
For the year, Federal-Mogul reported a net loss of $189.5 million or $2.17 a share on revenue of $5.5 billion, compared with a loss of $1.6 billion or $19.62 on revenue of $5.2 billion in 2002. The 2002 results include the effect of a $1.4 billion noncash accounting charge to reflect changes in recording good will.
The sales increase was driven by a rise in the value of the euro and increased sales of replacement parts. About 45 percent of Federal-Moguls sales are in automotive replacement parts.
I love it when we have cold, nasty weather, McClure said. Weve actually seen improvement on (replacement parts) year over year, which is somewhat unusual. Some of that is our mix wiper blades, friction materials, chassis parts things that have to be replaced.
Terry Kosdrosky is a staff reporter for Crain's Detroit Business, a sister publication to Automotive News.