Federal-Mogul $550 million in the red in 2006

Detroit, Michigan - Auto parts supplier Federal-Mogul Corp. said its operating financial performance improved in 2006 as it prepares to emerge from more than five years of bankruptcy protection this spring.

However, a one-time $501 million settlement charge related to the Chapter 11 bankruptcy case kept Federal-Mogul's finances for the three months and for the 12 months ended December 2006, firmly in the red.

The company reported a net loss of $467 million (€360 million) on revenue of $1540 million (€1184 million) during the fourth quarter, compared with a net loss of $204 million on revenue of $1490 million during the same quarter a year earlier. For 2006, Federal-Mogul posted a net loss of $550 million on revenue of $6330 million, compared with a 2005 net loss of $334 million on revenue of $6290 million.

For the quarter, Federal-Mogul reported earnings before taxes and other non-operating charges of $170 million, compared with $153 million during the same quarter in 2005. For all of 2006, it posted $625 million in earnings before non-operating charges compared with $554 million during 2005.

Federal-Mogul, which filed for bankruptcy protection in October 2001 because of asbestos liabilities, is appearing in US Bankruptcy Court in Wilmington, Del., on May 8 to seek approval of its reorganisation plan.

From Rubber & Plastics News (A Crain publication)