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FEDERAL-MOGUL ANNOUNCES 1991 RESULTS AND TAKES ACTION TO STRENGTHEN ITS FINANCIAL POSITION

 FEDERAL-MOGUL ANNOUNCES 1991 RESULTS
 AND TAKES ACTION TO STRENGTHEN ITS FINANCIAL POSITION
 SOUTHFIELD, Mich., Feb. 12 /PRNewswire/ -- Federal-Mogul Corporation (NYSE: FMO) today reported a net loss of $4.9 million or $.36 a share for 1991, compared to net earnings of $8.1 million or $.20 a share for 1990. For the 1991 fourth quarter, the company reported a net loss of $8.4 million or $.41 a share, compared with a net loss of $7.8 million or $.39 a share in the same 1990 quarter.
 The 1991 loss includes a one-time pre-tax restructuring charge of $25 million, or $.98 a share taken in the fourth quarter. This represents the costs of employee reductions, inventory valuations, reorganizing certain operations and other costs associated with the many process changes being implemented throughout the company. Federal-Mogul also announced it would reduce its annual dividend to help strengthen its financial position.
 "These steps will have a beneficial long-term impact on the company's financial performance," said Chairman and Chief Executive Officer Dennis J. Gormley. "They will position Federal-Mogul for continued growth and improved profitability.
 "Although the company reported a loss for the quarter and the year, Federal-Mogul improved its operations in 1991, in the face of a very difficult economy," Gormley explained. "We were able to do so by continuing an aggressive cost management program as well as through the implementation of many process improvements at our manufacturing and distribution facilities."
 The restructuring charge offsets Federal-Mogul's $16.2 million, or $.72 a share, after-tax gain from the sale of its Huck Manufacturing subsidiary in the 1991 fourth quarter. According to Gormley, proceeds of the sale were used to reduce the company's debt and to invest in ongoing capital expenditures to improve facilities.
 "The company's continuing strategy is to focus on our core businesses and achieve our three-year goals by implementing process change across the board," Gormley said. "In support of this plan we sold Huck, a non-strategic asset, and took a one-time restructuring charge. These actions will help us continue to streamline our operations and strengthen our competitive position.
 "Net sales from continuing operations were $266.7 million for the 1991 fourth quarter, compared with $246.9 million for the same period in 1990. Net sales from continuing operations for the year ended Dec. 31, 1991, were $1.1 billion, an increase of approximately $134 million over the previous year.
 "The increase can be attributed to Glyco, our German engine bearing operation, which contributed an additional $144 million in sales as compared to 1990," Gormley explained. "This was offset by a sales decline of $11 million in our other operations which were negatively impacted by the downturn in original equipment markets worldwide."
 Operating earnings before restructuring and discontinued operations were $0.4 million in the 1991 fourth quarter, compared with a loss of $9.6 million in the same 1990 quarter. Full-year operating earnings before restructuring and discontinued operations totaled $4.0 million in 1991 and $1.6 million in 1990.
 In a move to further strengthen the company's financial position, the board of directors, at its regular meeting today, declared a reduced 1992 first-quarter dividend of $.12 a share on the common stock of the company. The dividend is payable March 10, 1992, to shareowners of record at the close of business on Feb. 21, 1992. It will be the 224th consecutive dividend paid by the company.
 "This action should not be interpreted as a loss of confidence in Federal-Mogul's long-term earning power," Gormley stated. "It is simply the fiscally prudent step to take during these depressed economic times. The continuing process change creates many growth opportunities. The ability to capitalize on these growth opportunities is a function of our financial strength.
 "While modest recovery seems likely in 1992, we feel it is important to take immediate action to improve our competitive position," he continued. "We remain focused on strengthening the company's financial performance, concentrating on our core businesses and improving our return to shareowners."
 Headquartered in Southfield, Federal-Mogul operates 35 plants, more than 100 distribution centers and four major research centers around the world. Its products include a variety of precision parts for the transportation, farm equipment, construction and manufacturing industries.
 FEDERAL-MOGUL CORPORATION
 FINANCIAL HIGHLIGHTS
 QUARTER AND YEAR ENDED DEC. 31
 (Thousands of Dollars, Except Per-Share Data)
 Quarter Ended Year Ended
 1991 1990 1991 1990
 Net sales $266,684 $246,883 $1,098,725 $964,781
 Earnings (loss) from
 continuing operations
 before income taxes ($26,039) ($15,344) ($18,752) 6,971
 Income taxes
 (credits) (1,475) (5,725) 2,300 5,400
 Earnings (loss) from
 continuing operations (24,564) (9,619) (21,052) 1,571
 Discontinued operations:
 Earnings (loss) from
 operations, net of
 income taxes (20) 1,836 (94) 6,558
 Gain on sale, net of
 income taxes 16,198 --- 16,198 ---
 16,178 1,836 16,104 6,558
 Net earnings (loss) (8,386) (7,783) (4,948) 8,129
 Less preferred stock
 dividends, net of
 income taxes (763) (920) (3,055) (3,680)
 Net earnings (loss)
 available for
 common shares ($9,149) ($8,703) ($8,003) $4,449
 Primary earnings (loss)
 per common share:
 Continuing operations ($1.14) ($.47) ($1.08) ($.09)
 Discontinued operations .73 .08 .72 .29
 ($.41) ($.39) ($.36) $.20
 Average number of
 common shares 22,332,821 22,308,154 22,314,372 22,309,664
 -0- 2/12/92
 /CONTACT: Lonnie Ross of Federal-Mogul Corporation, 313-354-9934/
 (FMO) CO: Federal-Mogul Corporation ST: Michigan IN: AUT SU: ERN


JG-KK -- DE011 -- 9287 02/12/92 13:42 EST
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Date:Feb 12, 1992
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