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To: Softechie who wrote (1500)	7/20/2001 12:49:13 AM
From: Softechie	Read Replies (1) \| Respond to of 2155

Federal-Mogul posted a loss of 44 cents per share from operations vs. earnings of 65 cents per share last year. The latest number missed the estimate for a loss of 35 cents per share in a survey of analysts by First Call/Thomson Financial. Sales were $1.4 billion compared to $1.6 billion last year. The auto parts maker has been struggling with a downturn in the industry. Federal-Mogul Call -2: Shares Fall On Heels Of 2Q Loss 19 Jul 14:55 By Jocelyn Parker of DOW JONES NEWSWIRES DETROIT (Dow Jones)--Auto-parts maker Federal-Mogul Corp. (FMO) continued bleeding red ink in the second quarter as the company displayed less optimism about quickly turning around its asbestos crisis. "We have seen no letups in the number of claims being filed," Chief Executive Frank Macher told analysts and members of the media during a conference call Thursday. Macher also noted that the payments have led to increased financial pressures at the company. Federal-Mogul, maker of engine bearings, on Thursday reported a second-quarter loss of 44 cents a share, excluding charges, compared with a profit of 65 cents a share in the year earlier period. Including items, which were related to charges for restructuring, impairment, gains and losses on sales of businesses and gains on debt to equity swaps, the company lost 25 cents a share compared with a profit of 65 cents a share a year ago. The analyst consensus estimate for Federal-Mogul was a loss of 35 cents a share in the second quarter. In addition to ongoing asbestos payments, the Southfield, Mich., parts makers has suffered under the weight of falling vehicle sales, a weak replacement parts market and currency exchange pressures. Macher said on the conference call that original equipment sales were down 7% year over year during the second quarter and the replacement parts market was also down 7% year over year. Shares of Federal-Mogul lost 17 cents to trade at $1.52, near its 52-week low of $1.45 reached July 2. The stock has fallen nearly 30% this year. (MORE) DOW JONES NEWS 07-19-01 02:55 PM Federal-Mogul Call-3: Co: Only Sick Should Get Benefits 19 Jul 15:43 CEO Macher said during the conference call that the asbestos payments are in line with the plan the company laid out earlier this year. Federal-Mogul expects to make $350 million in asbestos payments in 2001, $250 million in 2002 and $150 million in 2003. Nevertheless, Macher said he is less optimistic that Federal-Mogul will get senators to pass legislation that would put a cap on settlements because of "a lot of confusion in the senators' agendas" and because of partisan issues. Also, Federal-Mogul's partner in getting legislation passed, Chicago building materials maker USG Corp. (USG), also recently filed for Chapter 11 bankruptcy protection. There's been speculation among analysts that Federal-Mogul will also file for bankruptcy protection if it can't get its asbestos situation under control. Analysts say mounting asbestos claims may drain most of its cash and cause debt holders to push the company into bankruptcy. Federal-Mogul has said it would rather fight its claims than file for bankruptcy. The company also has said it doesn't want to settle with people who aren't medically impaired and who weren't exposed to the products. "Those who are sick should receive equitable compensation," Macher said. "But under the current situation, the sick won't receive fair compensation." The company inherited its asbestos problems from its 1998 acquisition of T&N PLC. Macher said the next two to three weeks will be crucial in trying to get some type legislation passed because senators will be going on recess soon. Additionally, officials said on the call that incentives - rebates and special financing - might hurt future auto sales. They also said Japanese competition is eroding the domestic auto makers' market share, which is hurting business at Federal-Mogul. The company doesn't expect to see a recovery in the heavy-duty truck market until mid-2002. -By Jocelyn Parker, Dow Jones Newswires, 313-963-7800 (END) DOW JONES NEWS 07-19-01 03:43 PM Federal-Mogul Call-4: Needs Law To Limit Asbestos Claims 19 Jul 17:30 CEO Macher didn't provide any guidance about future financial results during the conference call. Analysts surveyed by Thomson Financial/First Call on average estimate that Federal-Mogul will lose $1.57 a share this year. That compares with a profit of 53 cents a share in 2000. S&P Equity Group analyst Efraim Levy said asbestos legislation is likely the best solution for Federal-Mogul. "Without it, there's an increased likelihood of bankruptcy protection," Levy told Dow Jones Newswires. "On a practical basis, that might make sense because they can continue to run the business without worrying about the asbestos claims." Federal-Mogul faces a major battle to get legislation because the Senate is no longer controlled by the Republicans, Levy said. -Jocelyn Parker, Dow Jones Newswires, 313-963-7800 (END) DOW JONES NEWS 07-19-01 05:30 PM