CHICAGO -- Bankrupt auto parts maker Federal-Mogul Corp. on Monday posted a wider quarterly loss as higher raw material expenses and increased pension costs cut into gross profit margins.
The company, which sought bankruptcy protection in October 2001 to deal with asbestos liabilities, said the second-quarter net loss increased to $11.6 million, or 13 cents a share, from $9 million, or 11 cents a share, a year earlier.
"Several challenging industry-wide issues, such as escalating raw material and pension costs, continue to impact our financial performance," Chief Executive Jose Maria Alapont said in a statement.
Sales rose 6 percent to $1.67 billion from $1.57 billion due to new business and the weak U.S. dollar.
The Southfield, Michigan-based company said earnings from continuing operations before income taxes slipped to $13 million from $15 million. However, the results improved $35 million from the first quarter.