DETROIT - Federal-Mogul Corp. on Wednesday reported higher net losses but improved cash flow in the second quarter as it continues efforts to emerge from five years of bankruptcy protection later this year.
The Southfield, Mich., supplier of pistons, bearings, valves, gaskets and other components posted a net loss of $16.8 million on revenue of $1.63 billion during the quarter ending June 30. That compared with a net loss of $11.6 million on revenue of $1.66 billion during the same quarter last year.
For the first half of the year, Federal-Mogul posted a net loss of $85.2 million on sales of $3.23 billion, compared with a loss of $59.9 million on revenue of $3.30 billion during the year-ago period.
The company filed for Chapter 11 bankruptcy in October 2001 because of asbestos liabilities. It was the largest automotive company to file for bankruptcy until Delphi Corp. sought protection last October.
Federal-Mogul said cash flow has improved this year. It generated positive cash flow of $30 million for the first half of 2006, compared with $3 million for the same period of 2005.
The company also completed a $31 million acquisition of Goetze India Ltd. The manufacturer of pistons and rings is headquartered in Delhi, India. That investment yielded $14 million in revenue and $2 million in gross profits during the quarter.
"The company remains committed to its global profitable growth strategy," CEO Jose Maria Alapont said in a statement. "Our recent acquisition and our successful restructuring efforts are important activities supporting this strategy and expanding our capability to provide innovative and quality products at the most competitive cost."
Federal-Mogul Corp. ranks No. 43 on the Automotive News list of the top 100 global suppliers with estimated worldwide original-equipment automotive parts sales of $3.40 billion in 2005.
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