From Detroit Free Press

SOUTHFIELD, MI -- Federal-Mogul Corp., the Southfield, Mich.-based maker of auto parts, Wednesday posted a wider loss for the fourth quarter, hurt by charges to its global sealing systems operations and its European powertrain operations.

The net loss came to $270.4 million, or $3.07 a share, for the quarter, compared with a loss of $120.7 million, or $1.39 a share, a year ago, the company said in a statement.

The loss from continuing operations increased to $274.5 million, or $3.12 a share, from a loss of $106.6 million, or $1.23 a share, a year earlier.

After taking into account its discontinued operations, the company posted a net loss of $270.4 million, or $3.07 a share, for the quarter, compared with a loss of $120.7 million, or $1.39 a share, a year ago.

Results in the latest quarter include $240 million of combined intangible and tangible asset impairment charges, offset partially by a $46-million gain on an insurance settlement.

Net sales rose 10 percent to $1.55 billion from $1.41 billion.

Federal-Mogul employs 45,000 people worldwide, including about 800 people at its Southfield headquarters.

The company entered Chapter 11 in October 2001 because of asbestos claims tied to its acquisition of Britain's T&N plc. It has struggled to exit bankruptcy ever since.

It recently named its fourth CEO in four years, former Delphi Corp. executive Jose Maria Alapont. He is expected to join the company next month.

The company filed its most recent reorganization plan in June with bankruptcy courts in the United States and Britain.

A Dec. 9 hearing about the plan was postponed so the company could estimate the amount in claims it may have to pay in Britain, the company said in a Dec. 6 filing with the U.S. Securities and Exchange Commission.

For the full year, the net loss came to $334 million, or $3.83 a share, compared with a loss of $189.5 million, or $2.17 a share, for 2003.

Federal-Mogul has not posted a profit since 1999 when it earned $243 million. In the following five years, Federal-Mogul has lost nearly $3.5 billion.

Full-year sales climbed to $6.17 billion in 2004 from $5.52 billion in 2003.

Federal-Mogul stock closed up 2 cents to 38 cents a share on average trading volume.

Copyright 2005 Detroit Free Press. All Rights Reserved.

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