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FEDERAL-MOGUL EARNINGS MORE THAN DOUBLE FOR THE SECOND QUARTER

 SOUTHFIELD, Mich., July 21 /PRNewswire/ -- Federal-Mogul Corporation (NYSE: FMO) today reported net earnings of $15.3 million or $.47 per common share for the second quarter of 1993, compared to $4.4 million or $.16 per common share for the same 1992 period. The 1993 results include a gain of $4.7 million or $.17 per share on the previously announced sale of the assets of the company's former subsidiary, Federal-Mogul Westwind Air Bearings, Limited.
 "Our operating margin for the 1993 second quarter increased more than 60 percent over the same quarter in 1992," said Chairman and Chief Executive Officer Dennis J. Gormley. "The TRW automotive aftermarket business acquired in 1992 contributed to this improvement. We also continue to reduce operating expenses as we consolidate the TRW facilities. The integration of the TRW aftermarket business with Federal-Mogul remains on schedule to reach our target of realizing $15 million in savings by year end."
 Sales for the 1993 second quarter were $401.8 million, a 29-percent improvement over the 1992 second quarter. Gormley said the majority of the improvement came from aftermarket sales of TRW suspension and engine parts. The company's remaining aftermarket business was relatively flat on a year-to-year basis.
 "Domestic original equipment sales increased across all product lines as a result of accelerating auto and light truck builds," he said. "These improvements, however, were offset by reduced activity in Europe."
 Earnings for the six months ended June 30, 1993, were $22.8 million or $.72 per share compared to earnings of $5 million or $.15 per share before the cumulative effect of adopting FAS 106 for the same 1992 period. Sales for the first half of 1993 totaled $812.3 million compared to $608 million for the same quarter in 1992.
 "Both our aftermarket and original equipment businesses remain strong in North America, but we expect business to be weak in Europe for the rest of 1993," Gormley said. "Throughout the remainder of the year we will continue to tighten cost controls in our European operations to offset recessionary conditions there. We also remain focused on improving companywide productivity while growing our business around the world."
 Headquartered 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. The company serves both the aftermarket and the original equipment market providing quality products -- as they are needed -- to customers around the world. Federal-Mogul operates 33 plants, more than 70 distribution centers and four major research centers worldwide.
 FEDERAL-MOGUL CORPORATION
 CONDENSED OPERATING RESULTS
 Quarter and Six Months Ended June 30
 (Millions of dollars, except per-share data)
 Quarter Ended Six Months Ended
 1993 1992(a) 1993 1992(a)
 Net sales $401.8 $311.0 $812.3 $608.0
 Cost of products sold 323.0 257.7 654.6 508.7
 Selling, distribution and
 administrative expenses 56.6 39.5 113.7 78.9
 Operating earnings 22.2 13.8 44.0 20.4
 Other income (expense):
 Amortization of intangible
 assets (2.2) (.5) (4.4) (1.1)
 Interest expense (5.8) (7.4) (14.3) (14.8)
 Interest income 1.6 1.7 3.6 3.4
 Gain on sale of business 4.9 --- 4.9 ---
 International currency
 exchange losses (.7) (.7) (1.8) (2.0)
 Other, net 2.4 1.6 2.9 4.2
 Earnings before income taxes
 and cumulative effect of
 accounting change 22.4 8.5 34.9 10.1
 Income taxes 7.1 4.1 12.1 5.1
 Earnings before cumulative
 effect of accounting
 change 15.3 4.4 22.8 5.0
 Cumulative effect of change
 in accounting for
 postretirement benefits,
 net of income taxes --- --- --- (88.1)
 Net earnings $15.3 $4.4 $22.8 ($83.1)
 Earnings per common share
 Earnings (before cumulative
 effect of accounting change
 in 1992) $.47 $.16 $.72 $.15
 Cumulative effect of
 accounting change --- --- --- (3.93)
 $.47 $.16 $.72 ($3.78)
 Average number of common
 shares (in thousands) 27,771 22,417 25,105 22,389
 (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."
 FEDERAL-MOGUL CORPORATION
 CONDENSED BALANCE SHEET
 (Millions of dollars)
 June 30 Dec. 31
 1993 1992
 Assets
 Current assets:
 Cash and equivalents $22.1 $19.1
 Accounts receivable 166.6 171.8
 Inventories 261.5 267.4
 Income tax benefits and prepaid expenses 33.6 29.2
 Total current assets 483.8 487.5
 Property, plant and equipment 378.3 390.7
 Business investments and other assets 225.0 221.3
 Total assets $1,087.1 $1,099.5
 Liabilities and shareholders' equity
 Current liabilities:
 Short-term debt $28.5 $69.4
 Accounts payable 88.8 76.0
 Accrued compensation 35.2 28.4
 Other accrued liabilities 84.2 91.5
 Total current liabilities 236.7 265.3
 Long-term debt 235.6 350.6
 Postretirement benefits other than
 pensions 143.2 143.3
 Pension and other liabilities 83.0 82.1
 Deferred income taxes 27.3 27.3
 Total liabilities 725.9 868.6
 Shareholders' equity:
 Series D convertible preferred stock 76.6 76.6
 Series C ESOP preferred stock 60.9 60.9
 Unearned ESOP compensation and other (49.2) (51.6)
 Common stock 146.2 111.9
 Additional paid-in capital 112.1 19.3
 Retained earnings 42.2 30.2
 Currency translation (27.5) (16.4)
 Total shareholders' equity 361.3 230.9
 Total liabilities and shareholders'
 equity $1,087.1 $1,099.5
 FEDERAL-MOGUL CORPORATION
 CONDENSED CASH FLOWS
 Six Months Ended June 30
 (Millions of dollars)
 1993 1992
 Net earnings from operations $18.1 $5.0
 Depreciation and amortization 26.6 23.3
 Working capital and other (29.9) (3.1)
 Cash provided from operating activities 14.8 25.2
 Cash provided from (used by)
 investing activities
 Expenditures for property, plant
 and equipment (21.6) (14.3)
 Proceeds from sale of business 16.8 ---
 Net cash used by investing activities (4.8) (14.3)
 Cash provided from (used by)
 financing activities
 Proceeds from issuance of common stock 115.1 ---
 Net decrease in debt (150.0) (87.0)
 Sale of accounts receivable 39.4 54.1
 Dividends paid to common shareholders (6.2) (5.4)
 Dividends paid to preferred shareholders (5.4) (2.3)
 Other .1 1.1
 Net cash used by financing activities (7.0) (39.5)
 Increase (decrease) in cash and equivalents 3.0 (28.6)
 Cash and equivalents at beginning of
 period 19.1 44.6
 Cash and equivalents at end of period $22.1 $16.0
 FEDERAL-MOGUL CORPORATION
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 1993
 1. ISSUANCE OF COMMON STOCK
 On April 20, 1993, Federal-Mogul sold in a public offering 6,250,000 shares of its common stock at a price of $19.375 per share. Of the total shares offered, 5,300,000 shares were sold in the United States and 950,000 shares were sold internationally. Subsequent to the sale, the company used approximately $101 million of the net proceeds from the offering to fully repay bank debt outstanding, including debt incurred for the acquisition of TRW Inc.'s automotive aftermarket business in October 1992.
 On April 27, 1993, Federal-Mogul issued and contributed 500,000 additional shares of its common stock to the Federal-Mogul Corporation Retirement Trust. The Trust serves as a funding medium for and holds the assets of various pension and retirement plans maintained by the company. These shares were contributed to the Trust in order to reduce the projected benefit obligation in excess of pension plan assets existing under certain plans. The company did not receive any proceeds from the contribution of these shares.
 2. SALE OF BUSINESS
 Effective April 30, 1993, the company sold the net assets and business of its Westwind Air Bearings Ltd. subsidiary (Westwind) for approximately $17 million in cash and a 20-percent equity position in the new Westwind operating company. The company recognized a gain on the sale of Westwind of $4.9 million, or $.17 per share. The results of operations of Westwind have been included in the company's results of operations through the date of sale.
 3. EARNINGS PER SHARE
 The computation of earnings per share is based on the weighted average number of outstanding common shares and common stock equivalents during the respective periods, and was therefore impacted by the issuance of 6,750,000 shares of common stock in April 1993. Net earnings used in the computations of earnings per share are reduced by preferred stock dividend requirements.
 -0- 7/21/93
 /CONTACT: Lonnie Ross of Federal-Mogul Corporation, 313-354-9934/
 (FMO)


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

JG-ML -- DE004 -- 3929 07/21/93 12:12 EDT
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Date:Jul 21, 1993
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