Federal-Mogul reports strong sales increase in 2011
February 29, 2012
Federal-Mogul Corporation has reported full-year sales up 11%, with improved operating margin in the fourth quarter and full-year 2011. The stronger results were driven by record full-year global original equipment revenue with growth significantly above market rates in all regions.
Sales in 2011 matched record levels at $6.9 billion, up 11%, driven by an 18% increase in sales to original equipment customers, which exceeded the 5% global market growth rate during the same period. Federal-Mogul’s sales growth rate during 2011 exceeded the underlying market growth rate in all major regions. The company improved operating margin by $76 million (24%) to 5.8% of sales.
Operational EBITDA for the full year was $702 million or 10.2% of sales, up from $671 million in 2010. The company however recorded a net loss in Q4 2011 of $(239) million and a $(90) million net loss for the full year, reflecting a Q4 2011 impairment charge of $(304) million.
“Federal-Mogul continues to transform its business to include a broader global portfolio of innovative, leading products with higher technology content that improve fuel economy, reduce emissions and enhance vehicle safety,” the company stated.
During 2011 Federal-Mogul invested $348 million in capital projects to launch new leading technology products, increase capacity, improve operational efficiency and establish greenfield sites in fast-growing BRIC and other best cost markets, with significant projects in China and India. Capital investments in 2011 were nearly $100 million more than in 2010 and double the 2009 level.
“Federal-Mogul’s strategy for sustainable global profitable growth is based on leading technology and innovation, competitive cost and best-in-class quality products and services,” stated Jose Maria Alapont, Federal-Mogul President and CEO.
“Federal-Mogul achieved an 18% global OE revenue growth rate in 2011, exceeding the global market growth rate of 5%, with stable global aftermarket sales, including strong growth in Europe, up 6%, China, up 18% and India, up 12%. The company’s OE sales growth outpaced the underlying rate in all markets. Federal-Mogul in 2011 achieved record OE sales while simultaneously managing more than 100 new customer program launches with new Federal-Mogul technologies,” Alapont continued.
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]
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