Federal-Mogul reported net sales of $6.9 billion for the year ended December 31, 2007, an increase of $588 million compared to the same period in 2006. The company says more than $300 million of the increase is due to increased global demand and new program launches with both OEM and aftermarket customers, with the balance due mainly to favorable foreign currency movements.
Federal-Mogul emerged from reorganization under Chapter 11 of the United States Bankruptcy Code on December 27, 2007 and adopted fresh-start reporting in connection with its emergence.
“We are very pleased with the progress achieved in 2007, especially in regards to our emergence from Chapter 11, a significant milestone in Federal-Mogul’s 108-year history of serving the global automotive industry," says Federal-Mogul President and Chief Executive Officer José Maria Alapont. " We again would like to acknowledge our customers, shareholders, suppliers and employees worldwide for their loyalty and support.”
Income before taxes for the 12-month period totaled $1.7 billion, compared with a loss before taxes of $614 million for the same period in 2006. Net income for the 12-month period totaled $1.4 billion, compared with a net loss of $550 million for the same period of 2006.
The company reported that gross margin for the 12-month period ended December 31, 2007 increased by $80 million when compared to the same period in 2006.
Gross margin was further improved through reduced pension expense of $76 million associated with the settlement of the U.K. pension plans, states the manufacturer.
Excluding these impacts, the company’s earnings before income taxes for the year ended December 31, 2007 was $27 million, compared to a loss before income taxes of $113 million for 2006, an improvement of $140 million. In addition to those same factors affecting gross margin, results for the full year were impacted by reduced costs associated with the company’s Chapter 11 proceedings, and increased charges related to asset impairments, among other reasons.
The Company reported operational EBITDA of $763 million for the twelve-month period ended December 31, 2007, an increase of $138 million when compared to the same period of 2006. A reconciliation of operational EBITDA to the company’s income before income taxes for the twelve months ended December 31, 2007 has been provided.
Capital expenditures were $310 million for the year ended December 31, 2007, an increase of $72 million from 2006. Total cash flow, excluding cash flows associated with financing activities, payment to the U.S. Asbestos Trust, payment of pre-petition interest, payments to settle LSC, and the settlement of the U.K. Administration proceedings, was $88 million and $83 million for 2007 and 2006, respectively.
For more information, visit www.federalmogul.com.
