Federal-Mogul Reports Loss

Federal-Mogul lost $120.7 million in the final three months of 2003, 7 percent more than it lost in the same quarter of 2002. For the year, the Southfield-based automotive supplier, which makes such products as Champion spark plugs, Anco wipers and Wagner lights, lost $189.5 million. That's far below 2002's net loss of $1.6 billion, which included a $1.4-billion accounting charge.

From Detroit Free Press

SOUTHFIELD, MI — Federal-Mogul lost $120.7 million in the final three months of 2003, 7 percent more than it lost in the same quarter of 2002.

For the year, the Southfield-based automotive supplier, which makes such products as Champion spark plugs, Anco wipers and Wagner lights, lost $189.5 million. That’s far below 2002’s net loss of $1.6 billion, which included a $1.4-billion accounting charge.

Overwhelmed by hundreds of thousands of lawsuits from people who claimed they were exposed to asbestos made by companies that Federal-Mogul later bought, the company filed for bankruptcy court protection in October 2001. It plans to emerge later this year, essentially under the control of a trust established to handle the asbestos claims.

One piece of good news for the supplier: Revenues rose 14 percent in the fourth quarter to $1.4 billion and 7 percent for the year to $5.5 billion. It also continues to report positive cash flow from operations.

_______________________________________

Click here to view the rest of today’s headlines.