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FEDERAL-MOGUL ANNOUNCES IMPROVED FIRST-QUARTER EARNINGS ON RECORD SALES

 SOUTHFIELD, Mich., April 16 /PRNewswire/ -- Federal-Mogul Corporation (NYSE: FMO) today reported net earnings for the first quarter of 1993 of $7.5 million or $.23 per common share compared to a net loss for the 1992 first quarter of $87.5 million or $3.94 per common share. The 1992 loss included a one-time charge of $88.1 million or $3.93 per common share due to a change in accounting for retirement benefits.
 Chairman and Chief Executive Officer Dennis J. Gormley said that 1993 first-quarter earnings were favorably affected by additional sales volume in the company's core aftermarket business, including sales contributed by TRW's automotive aftermarket business acquired in October 1992, and continuing cost reduction efforts. These factors were offset in part by lower original equipment sales in the company's European operations, which were adversely affected by the recession in Germany and throughout the continent.
 Sales for the 1993 first quarter were $410.5 million, a single- quarter record, compared to $297.0 million for the same year-earlier period. "The addition of the TRW aftermarket business was a major contributor to the nearly 40-percent quarter-to-quarter sales growth," Gormley said. "However, increased sales of core products to the global aftermarket and original equipment products in North America and Latin America also contributed to the record sales level achieved in the first quarter."
 "The integration of the TRW business with Federal-Mogul continues on schedule and is expected to be essentially complete by year-end," Gormley added.
 Headquarter in Southfield, Federal-Mogul is a global distributor and manufacturer of a broad range of precision parts primarily for automobiles, light trucks, heavy trucks, and farm and construction vehicles. It operates 34 plants, more than 70 distribution centers and four major research centers around the world.
 FEDERAL-MOGUL CORPORATION
 CONDENSED OPERATING RESULTS
 Quarter Ended March 31
 (Millions of Dollars, Except Per-Share Amounts)
 1993 1992(a)
 Revenues
 Net sales $410.5 $297.0
 Other income 2.2 2.6
 412.7 299.6
 Costs and expenses
 Cost of products sold 333.4 251.0
 Selling, distribution and
 administrative expenses 57.0 39.5
 Amortization of intangible assets 2.2 .5
 Net interest expense 6.5 5.7
 International currency exchange losses 1.1 1.3
 400.2 298.0
 Earnings before income taxes and
 cumulative effect of accounting change 12.5 1.6
 Income taxes 5.0 1.0
 Earnings before cumulative effect of
 accounting change 7.5 .6
 Cumulative effect of change in accounting for
 postretirement benefits, net of income taxes --- 88.1
 Net earnings (loss) 7.5 (87.5)
 Preferred stock dividends, net of
 tax benefits 2.3 .7
 Net earnings (loss) available for
 common shares $5.2 ($88.2)
 Earnings (loss) per common share
 Earnings (loss) before cumulative effect
 of accounting change $.23 ($.01)
 Cumulative effect of accounting change --- (3.93)
 $.23 ($3.94)
 (a) 1992 operating results were restated from amounts previously reported to reflect adoption of Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions."
 -0- 4/16/93
 /CONTACT: Lonnie Ross of Federal-Mogul Corporation, 313-354-9934/
 (FMO)


CO: Federal-Mogul Corporation ST: Michigan IN: AUT SU: ERN

JG-KE -- DE023 -- 6922 04/16/93 16:23 EDT
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Publication:PR Newswire
Date:Apr 16, 1993
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