SOUTHFIELD, Mich. (Aug. 3, 2005) — Though it posted near 6-percent gains in net sales for the second quarter and the first half of the year, Federal-Mogul Corp.'s net loss deepened in part from rising raw materials and pension costs.
The Southfield-based automotive supplier posted net sales in the quarter of $1.67 billion, up 6 percent from $1.57 billion last year. For the year-to-date, the company's sales increased 5.8 percent to $3.3 billion vs. $3.12 billion last year.
But Federal-Mogul's net loss deepened to $11.6 million in the quarter from a loss of $9 million in 2004. So far this year, the company reported a loss of $59.9 million, similarly worsened from a loss of $29.4 million the prior period.
The company's income from continuing operations before income taxes fell to a gain of $13 million from $14.6 million for the quarter and to a loss of $8.7 million from $15.4 million for the half.
“While our second quarter earnings reflect an improvement over our first quarter results, several challenging industrywide issues, such as escalating raw material and pension costs, continue to impact our financial performance,” said Jose Maria Alapont, chairman, president and CEO. “We are committed to mitigating the impact of these issues on our business by focusing on strategies for driving global profitable growth.”