Thursday January 11 10:54 AM ET
Federal-Mogul Names Macher CEO
SOUTHFIELD, Mich. (Reuters) - Troubled auto parts maker Federal-Mogul Corp. (NYSE:FMO - news), which faces an estimated $900 million in asbestos-related lawsuit costs, on Thursday named its third chief executive in less than a year, as well as an heir-apparent to the new CEO.
Frank Macher, who previously headed the former ITT Automotive after 30 years at Ford Motor Co. (NYSE:F - news), replaces interim chief executive Robert Miller, a former outside director who stepped in last September after Dick Snell resigned abruptly. The Southfield, Mich., company also named Charles McClure president and chief operating officer.
Both appointments are effective immediately.
Shares of Federal-Mogul rose 1/2 to $4-1/8 in early New York Stock Exchange (news - web sites) trade, close to their 12-month low of $1-1/16. The stock has a year high of $20-9/16.
Macher, 59, will report to Miller, who will remain nonexecutive chairman of the board of directors. McClure, 47, will report to Macher. Both executives will join Federal-Mogul's board.
In his new position, Macher will succeed Miller as executive chairman of the board in July 2002. Miller will continue as a director. At the same time, McClure will succeed Macher as chief executive and president.
Macher was president and CEO of ITT Automotive from July 1997 to January 1999. McClure most recently was president and CEO of Detroit Diesel Corp.
Last week, Federal-Mogul said it secured $550 million in additional credit to buy itself time to address pending asbestos claims in the next four years.
Asbestos has been found to cause cancer and a variety of lung diseases. Symptoms can take as 40 years to surface after exposure.
Federal-Mogul, which has been downgraded by top credit rating agencies in recent months, also had said the additional credit line would allow it to recover as it works through the asbestos litigation.
Other companies, including Owens Corning (NYSE:OWC - news) in October and Armstrong Holdings Inc. (NYSE:ACK - news) last month, have filed for bankruptcy protection to manage asbestos liability.
Also last week, Federal-Mogul warned that, due to declining volume, its fourth-quarter loss will probably be substantially larger than the 25-cent per share guidance it had given Wall Street analysts.
http://dailynews.yahoo.com/h/nm/20010111/bs/autos_federalmogul_dc_1.html |
