Monday January 22, 8:33 am Eastern Time
Press Release
SOURCE: Federal-Mogul Corporation
Federal-Mogul Fourth Quarter Expectations
SOUTHFIELD, Mich., Jan. 22 /PRNewswire/ -- Federal-Mogul Corporation (NYSE: FMO - news) announces that earnings from operations for the quarter ended December 31, 2000 are expected to fall short of its earlier estimated loss of approximately $(.50) per share. The earlier estimate had been made primarily as a result of volume shortfalls in the North American original equipment market which deteriorated rapidly late in the quarter. The cessation of quarter-ending sales incentives in the Company's aftermarket operations also led to a greater than expected decline in replacement parts revenues.
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``Cost reduction actions were taken promptly but did not keep pace with the precipitous drop in volume,'' said Frank Macher, chief executive officer. ``Also, fourth quarter adjustments to square up items such as accruals for employee benefits, non-asbestos environmental remediation expenses, and inventory adjustments were all negative.''
The operating loss for the quarter is now expected to be approximately $(1.00) per share. It should be noted that extraordinary charges that may be taken in the fourth quarter for items such as restructuring or asbestos liabilities are not included in this estimate.
Federal-Mogul will report results for the quarter and year ended December 31, 2000 on February 1, 2001, and will provide further details at that time.
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 federal-mogul.com . Federal-Mogul's press releases are available by fax through Company News On-Call, call 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 cost and timing of implementing restructuring actions, conditions in the automotive components industry, certain global and regional economic conditions and other factors 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.
SOURCE: Federal-Mogul Corporation
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