Federal-Mogul Corporation (NASDAQ: FDML) has announced total sales were $1.7 billion, down 5% versus Q2 2011, but up 1% on a constant dollar basis versus the second quarter 2011.
Federal-Mogul reported a net loss in Q2 2012 of $59 million. Operational EBITDA was $159 million or 9.3% of sales, down from Q2 2011 due to the impact of lower sales, negative exchange and unfavourable product and regional mix.
“We are putting in place the foundation for stronger performance at Federal-Mogul. The company is investing in its core technology portfolio of powertrain products, vehicle safety products and leading aftermarket brands,” said Rainer Jueckstock, Federal-Mogul OE division Chief Executive Officer. “The recently announced BERU spark plug acquisition is a great example of value-enhancing strategic acquisitions in core automotive technologies and key markets,” said Jueckstock.
“In addition, we announced a comprehensive restructuring of our global brake friction and wipers manufacturing footprint to improve cost competitiveness and raise capacity utilization in low cost locations,” he continued.
“We are taking the necessary actions to restructure our business for improved profitability and to meet customer expectations for leading technology at competitive costs,” said Michael Broderick, Federal-Mogul Aftermarket division Chief Executive Officer. “This will be especially beneficial when supplying products to the aftermarket, where price competition is a more significant factor in purchase decisions,” he said.
Federal-Mogul derives about 60% of total revenue from sales to customers outside the U.S. market and was therefore significantly impacted by recent currency devaluations versus the dollar. Total sales in North America were up 4% in constant dollars versus the same period last year.
Federal-Mogul’s global original equipment sales were $1.1 billion, up 3% in constant dollars versus Q2 2011 driven by a 9% OE sales increase in the United States and 7% OE sales increase in the BRIC markets, off-setting a 4% revenue decline in Europe. Light vehicle production in Europe during the quarter decreased 9% versus Q2 2011 as regional vehicle makers reacted to macroeconomic factors driving slower automotive sales.
Federal-Mogul employs some 45,000 people in 34 countries and has global headquarters in Southfield, Michigan, United States.
Posted by: Paul Whittaker, Editor ipmd.net, [email protected]