Federal-Mogul Reports Record Second Quarter Sales,
Earnings, Cash Flow and EVA Southfield, Mich. (PROTEXT)
-- $22 Million of economic value added. -- Earnings per share from operations up 102% to $1.21, excluding
integration costs. -- Second quarter sales reach new record of $1,687 million, up
39%. -- Cash flow from operations, net of capital expenditures, totals
$202 million. -- $70 million additional net new business announced. -- Acquisition of Alcan Nural completed. -- Automotive cylinder liner joint venture with Teikoku
established. -- Divestiture of Italian auto parts distributor announced. Federal-Mogul Corporation (NYSE: FMO) today announced record second quarter sales, earnings, cash and EVA, posting solid financial results for the tenth consecutive quarter. "Our ability to add economic value through excellent cash generation and by doubling our earnings per share from operations shows that the integration plan is right on track," said Dick Snell, chairman and chief executive officer. "Our focus on defect reduction continues to strengthen customer partnerships." Federal-Mogul announced an additional $70 million in net new business awards covering the 1999 to 2003 timeframe for both original equipment and aftermarket customers. This is an 11% increase over the first quarter announcement bringing net new business to $730 million. The $70 million net new sales by Federal-Mogul's operating groups include Powertrain Systems with $40 million, Sealing Systems with $27 million and General Products with $3 million. In line with its growth strategy, Federal-Mogul completed its announced acquisition of Alcan Nural, a German piston company. Federal-Mogul also established a joint venture with Teikoku Piston Rings for the manufacture of automotive cylinder liners at Federal-Mogul's current Lake City, Minnesota, manufacturing facility. Federal-Mogul's second quarter revenues increased to $1,687 million compared to $1,214 million in 1998. For the second quarter, the company earned $96 million or $1.21 per share from operations, compared to $31 million or $.60 per share from operations in 1998. Earnings per share from operations exclude integration costs in 1999, and integration costs as well as extraordinary items in 1998. Including these items, the company reported second quarter earnings of $87 million or $1.11 per share in 1999, and a loss of $3 million or ($.07) per share in 1998. The company generated $202 million of cash from operations. Cash from operations is net of capital expenditures and excludes integration and restructuring payments. EVA increased from $2 million in the second quarter of 1998 to $22 million the second quarter of 1999. Federal-Mogul's second quarter sales were 63% in North America, 32% in Europe and 5% in the rest of the world. The original equipment market represented 53% of the company's global sales. Federal-Mogul's six-month consolidated sales reached $3,329 million, up 78% compared to the same period last year. Earnings from operations for the first two quarters of 1999 were $170 million, an increase of 181% over the first six months of 1998. Sales and earnings results were records for any six-month period in the company's 100-year history. In the second quarter, Federal-Mogul was honored by Auto Value with Outstanding Installer Promotion and Outstanding Manpower Support awards. Advance Auto Parts recognized Federal-Mogul as its 1998 Hard Parts Vendor of the Year. Federal-Mogul also received Toyota's Excellent Delivery Performance Award. Powertrain Systems Powertrain Systems reported second quarter sales of $755 million compared to $639 million in 1998. In new business awards, Federal-Mogul received the piston, rings and liner business for Navistar's inline 6-cylinder engine. Harley-Davidson selected Federal-Mogul to supply engine bearings and Briggs and Stratton's M23 engine program will feature Federal-Mogul's piston and ring assembly. In Japan, Federal-Mogul Ignition Products was awarded the spark plug business for Mazda's OES division. North America Sintered Products was awarded a contract by Means Industries for the manufacture of key powder metal components that make up their one-way clutch system to be used in the Ford 4R100 transmission on the 2001 model year. Federal-Mogul's piston and ring manufacturing operations in Bradford and Sunderland, England, received the 1998 Best Supplier Award by Nissan UK. Powertrain Systems' Waupun, Wisconsin valve guide and seat manufacturing facility received its second Gold Pentastar Award from Chrysler. Sealing Systems Sealing Systems reported second quarter sales of $319 million compared to $303 million in 1998. In new business awards, in Europe Federal-Mogul was awarded the exhaust gaskets and elastomeric seals business for various BMW models. General Products General Products reported second quarter sales of $613 million compared to $272 million in 1998. In new original equipment business, Federal-Mogul Friction Products was awarded by Ford the rear lining business for the C170. Friction Products was also awarded the front pads for a Mazda sport utility vehicle. DaimlerChrysler awarded Federal- Mogul the fog lamp business for the Jeep Cherokee. Internationally, Federal-Mogul won front and rear fog lamp business from General Motors and Isuzu in Thailand and Brazil. Federal-Mogul also was awarded from General Motors in China the siderail lamp business for the W van. Federal-Mogul's Lighting Products facility in Hampton, Virginia, received the Shingo prize for manufacturing excellence awarded by the National Association of Manufacturers and the Utah State University College of Business. The Lighting Products facility in Avilla, Indiana, received the State of Indiana Quality Improvement Award. Third Quarter Dividend on Common Stock Federal-Mogul's Board of Directors today declared the regular quarterly dividend of $.0025 cents a share on the common stock of the company. Third quarter common stock dividends are payable September 10, 1999 to shareowners of record at the close of the business August 31, 1999. Headquartered in Southfield, Michigan, Federal-Mogul is an automotive parts manufacturer providing innovative solutions and systems to global customers in the automotive, light trucks, heavy duty, farm and industrial markets. The company was founded in 1899. For more information on Federal- Mogul, visit the company's web site at http://www.federal-mogul.com. Federal- Mogul's press releases are available by fax through Company News On-Call, call (in the USA) 800-758-5804, ext. 306225. Information in this press release contains forward-looking statements which are not historical facts and involve risk and uncertainties. Actual results, events and performance could differ materially from those contemplated by these forward- looking statements including, without limitations, the company's ability to effectively divest certain assets, the cost and timing of implementing restructuring actions, the combination of the businesses of Federal-Mogul, T&N, Cooper and Fel-Pro, conditions in the automotive components industry, certain global and regional economic conditions and other factors discussed in this press release and those detailed from time to time in the company's filings with the Securities and Exchange Commission. Federal-Mogul undertakes no obligation to update any forward looking statement to reflect events or circumstances after the date of this press release. ots Original Text Service: Federal- Mogul Corporation Internet: http://www.newsaktuell.de Contact: Kimberly A. Welch, corporate communications, (in the USA) 248- 354-1916, or Bonnie J. Price, investor relations, (in the USA) 248-354-8847, both of Federal-Mogul Company News On-Call: http://www.prnewswire.com/comp/306225.html or fax, (in the USA) 800-758-5804, ext. 306225 Web site: http://www.federal-mogul.com
Materiály označené značkou Protext nejsou součástí zpravodajského servisu ČTK a nelze je publikovat pod její značkou. Jde o komerční sdělení zadavatele, který je ve zprávě označen a který za ně nese plnou odpovědnost.