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FEDERAL-MOGUL ANNOUNCES 1992 FIRST-QUARTER EARNINGS

 FEDERAL-MOGUL ANNOUNCES 1992 FIRST-QUARTER EARNINGS
 SOUTHFIELD, Mich., April 29 /PRNewswire/ -- Dennis J. Gormley,


chairman and chief executive officer of Federal-Mogul Corporation (NYSE: FMO), today reported net earnings of $1.9 million, or $0.05 per common share for the first quarter of 1992, compared with a net loss of $1.3 million or $0.09 per common share for the same 1991 quarter.
 Sales for the quarter ended March 31, 1992, were $297.0 million compared with $278.1 million in the same 1991 quarter, which was adversely impacted by worldwide economic conditions during the Gulf War. Gormley said the sales increase was also the result of new business with certain aftermarket customers. Domestic and international aftermarket sales increased nearly 10 percent over the preceding year and sales to the original equipment sector improved more than 4 percent.
 According to Gormley, the $0.14 a share earnings improvement in 1992 was a direct result of increased sales and the company's continuing efforts to improve productivity. "The first quarter of 1992 also resulted in positive cash flow from operations," he added. "Success in reducing inventories during the quarter helped offset the increased working capital associated with our higher sales level.
 "We continue to make excellent progress on our goal to reduce gross inventories by $125 million between 1990 and 1992. In the first quarter of this year, we reduced inventories by an additional $10 million," Gormley said. "This brings our total inventory reduction to approximately $87 million since launching the program in January 1990.
 "Our ongoing focus on process improvements will continue to have a positive impact on our performance," he explained. "If the economy continues its gradual turnaround during the balance of the year, our progress should accelerate."
 Headquartered in Southfield, Federal-Mogul operates 34 plants, more than 70 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
 CONDENSED OPERATING RESULTS
 Quarter Ended March 31
 (Millions of dollars, except per-share data)
 1992 1991
 Revenues
 Net sales $297.0 $278.1
 Other income 2.7 3.0
 299.7 281.1
 Costs and expenses
 Cost of products sold 249.6 235.6
 Selling, distribution and
 administrative expenses 39.4 40.1
 Net interest expense 5.7 5.9
 International currency exchange losses 1.3 1.4
 Minority interests in net earnings
 of subsidiaries 0.1 0.2
 296.1 283.2
 Earnings (loss) before income
 taxes (credit) 3.6 (2.1)
 Income taxes (credit) 1.7 (0.8)
 Net earnings (loss) $1.9 ($1.3)
 Earnings (loss) per common share $.05 ($.09)
 Average no. of common and
 equivalent shares, in thousands 22,402 22,308
 FEDERAL-MOGUL CORPORATION
 CONDENSED BALANCE SHEET
 (Millions of dollars)
 March 31 Dec. 31
 1992 1991
 Assets
 Current assets
 Cash and equivalents $25.0 $44.6
 Accounts receivable 178.4 154.0
 Inventories 150.7 160.2
 Income tax benefits and prepaid expenses 36.9 40.5
 Total current assets 391.0 399.3
 Property, plant and equipment 360.5 380.9
 Business investments and other assets 102.1 104.0
 Total assets $853.6 $884.2
 Liabilities and shareowners' equity
 Current liabilities
 Short-term debt and current maturities
 of long-term debt $39.3 $47.5
 Accounts payable and accrued
 liabilities 173.5 156.0
 Total current liabilities 212.8 203.5
 Long-term debt 285.9 304.0
 Deferred taxes, pensions and other
 liabilities 111.5 120.5
 Total liabilities 610.2 628.0
 Shareowners' equity 243.4 256.2
 Total liabilities and shareowners'
 equity $853.6 $884.2
 FEDERAL-MOGUL CORPORATION
 CONDENSED CASH FLOWS
 Quarter Ended March 31
 (Millions of dollars)
 1992 1991
 Cash provided from (used by)
 operating activities:
 Net earnings (loss) $1.9 ($1.3)
 Depreciation and amortization 11.6 13.9
 Net changes to working capital (5.9) (10.9)
 Net cash provided from operating
 activities 7.6 1.7
 Cash provided from (used by)
 investing activities:
 Expenditures for property, plant
 and equipment (5.7) (12.7)
 Other (.2) .5
 Net cash used by investing activities (5.9) (12.2)
 Cash provided from (used by)
 financing activities:
 Increase (decrease) in debt (19.0) 14.6
 Dividends paid to common shareowners (2.7) (5.1)
 Other .4 (.5)
 Net cash provided from (used by)
 financing activities (21.3) 9.0
 Decrease in cash and equivalents ($19.6) ($1.5)
 -0- 4/29/92
 /CONTACT: Lonnie Ross of Federal-Mogul, 313-354-9934/
 (FMO) CO: Federal-Mogul Corporation ST: Michigan IN: AUT SU: ERN


DH-ML -- DE005 -- 4198 04/29/92 09:10 EDT
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