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FEDERAL-MOGUL TRIPLES 2ND-QUARTER EARNINGS AND DECLARES 3RD-QUARTER DIVIDEND

 FEDERAL-MOGUL TRIPLES 2ND-QUARTER EARNINGS
 AND DECLARES 3RD-QUARTER DIVIDEND
 SOUTHFIELD, Mich., July 22 /PRNewswire/ -- Dennis J. Gormley, chairman and chief executive officer of Federal-Mogul Corporation (NYSE: FMO), today reported 1992 second-quarter earnings of $5.7 million or $0.22 per common share compared to $1.9 million, or $0.05 per common share for the same 1991 quarter.
 "Our substantial earnings improvement is better than expected by market analysts. It is a direct result of additional sales volume and our success in controlling costs," Gormley explained.
 "The gross margin on sales of our products was 17.6 percent in the second quarter, a 1.6 percentage point improvement over the 1992 first quarter," he said. "Further, sales, distribution and administrative costs for the quarter are nearly 2 percent lower than prior-year levels, despite a significant increase in sales."
 Sales for the quarter ended June 30, 1992, were $311.0 million compared to $285.9 million for the same 1991 quarter, and $297.0 million for the first quarter of 1992. This reflects a 9-percent increase in sales over the same 1991 quarter and a 5-percent increase over the 1992 first quarter.
 According to Gormley, the year-to-year improvement in sales reflects continued strength in both the replacement and original equipment markets which increased in excess of 7 and 10 percent, respectively. Nearly all of the product lines contributed to the improvement, led by notable sales increases in oil seals, engine bearings and fuel systems.
 Earnings for the six months ended June 30, 1992, were $7.5 million compared to $0.6 million for the same 1991 period. Sales for the first half of 1992 totaled $608.0 million compared to $564.0 million for the same period in 1991.
 Gormley said Federal-Mogul's cash flow continues to be strong. "Operating cash flow for the first half of the year exceeds $25 million, more than covering our capital investment and dividend requirements.
 "The operating cash flow, coupled with the previously announced sale of $55 million in trade accounts receivable, enabled us to reduce our debt by $87 million from Dec. 31, 1991," he said. "These actions will also significantly reduce our future interest expense."
 Gormley added, "We are pleased with the improvement in our performance for the first half of 1992 as we continue to focus on strengthening both our earnings and financial condition."
 In addition, Federal-Mogul's board of directors today declared the regular quarterly dividend of 12 cents a share on the common stock of the company. The dividend is payable Sept. 10, 1992, to shareowners of record at the close of business on Aug. 21, 1992. It will be the 226th consecutive dividend paid by the company.
 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 and Six Months Ended June 30
 (Millions of Dollars, Except Per-Share Data)
 Quarter Ended Six Months Ended
 1992 1991 1992 1991
 Revenues
 Net sales $311.0 $285.9 $608.0 $564.0
 Other income 1.8 2.4 4.5 5.5
 312.8 288.3 612.5 569.5
 Costs and Expenses
 Cost of products sold 256.3 235.9 506.0 471.5
 Selling, distribution and
 administrative expenses 39.6 40.3 79.0 80.3
 Net interest expense 5.7 6.0 11.4 12.0
 International currency
 exchange losses .7 .9 2.0 2.3
 Minority interests in net
 earnings of subsidiaries .1 .4 .2 .6
 302.4 283.5 598.6 566.7
 Earnings from Continuing
 Operations Before Income Taxes 10.4 4.8 13.9 2.8
 Income taxes 4.7 2.8 6.4 2.1
 Earnings from Continuing Operations 5.7 2.0 7.5 .7
 Discontinued operations,
 net of income taxes 0.0 (.1) 0.0 (.1)
 Net Earnings $5.7 $1.9 $7.5 $.6
 Earnings (Loss) Per Common Share $.22 $.05 $.27 $(.04)
 FEDERAL-MOGUL CORPORATION
 CONDENSED BALANCE SHEET
 (Millions of Dollars)
 June 30 Dec. 31
 1992 1991
 ASSETS
 Current Assets
 Cash and equivalents $16.0 $44.6
 Accounts receivable 132.1 154.0
 Inventories 158.4 160.2
 Income tax benefits and prepaid expenses 25.5 40.5
 Total Current Assets 332.0 399.3
 Property, Plant and Equipment 366.1 380.9
 Business Investments and Other Assets 100.4 104.0
 Total Assets $798.5 $884.2
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities
 Short-term debt and
 current maturities of long-term debt $19.1 $47.5
 Accounts payable and accrued liabilities 166.9 156.0
 Total Current Liabilities 186.0 203.5
 Long-Term Debt 240.2 304.0
 Deferred Taxes, Pensions and Other Liabilities 115.8 120.5
 Total Liabilities 542.0 628.0
 Shareholders' Equity 256.5 256.2
 Total Liabilities and Shareholders' Equity $798.5 $884.2
 FEDERAL-MOGUL CORPORATION
 CONDENSED CASH FLOWS
 Six Months Ended June 30
 (Millions of Dollars)
 1992 1991
 Cash Provided From Operating Activities:
 Net earnings $7.5 $.6
 Depreciation and amortization 23.3 27.9
 Net changes to working capital (5.6) 6.9
 Cash Provided From Operating Activities 25.2 35.4
 Cash Used By Investing Activities:
 Expenditures for property, plant and equipment (14.3) (24.9)
 Other (.8) (.5)
 Cash Used By Investing Activities (15.1) (25.4)
 Cash Used By Financing Activities:
 Decrease in debt (87.0) (10.5)
 Sale of accounts receivable 55.0 0.0
 Dividends paid to common shareholders (5.4) (10.3)
 Dividends paid to preferred shareholders (2.3) (2.4)
 Other 1.0 (.7)
 Cash Used By Financing Activities (38.7) (23.9)
 Decrease in Cash and Equivalents (28.6) (13.9)
 Cash and equivalents at beginning of period 44.6 26.9
 Cash and Equivalents at End of Period $16.0 $13.0
 -0- 7/22/92
 /CONTACT: Lonnie Ross of Federal-Mogul Corporation, 313-354-9934/
 (FMO) CO: Federal-Mogul Corporation ST: Michigan IN: AUT SU: ERN


DH-SB -- DE016 -- 1978 07/22/92 13:52 EDT
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Date:Jul 22, 1992
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