SOUTHFIELD, Mich. (April 28, 2016) — Billionaire investor Carl Icahn-controlled Federal-Mogul Holdings Corp. reported a $35 million profit in the first quarter as sales in its aftermarket parts division rose 7.5 percent.
The automotive supplier's profit compares with an $11 million net loss in the first quarter last year.
The company, based in Southfield and ranked No. 57 on Automotive News' list of the top 100 global parts suppliers, has in recent quarters struggled to maintain profitability, most recently reporting a $58 million net loss in the fourth quarter of 2015.
Federal-Mogul reported first-quarter net sales of $1.9 billion, a 3-percent rise from 2015. Revenue from its powertrain parts unit was flat at $1.1 billion, while its aftermarket — or motor parts — revenue rose to $831 million on growth of business in the U.S., Canada and China.
The motor parts unit produces a variety of brand-name aftermarket parts such as Champion spark plugs, ANCO wiper blades, Fel-Pro engine products and Wagner brake parts.
“Our first quarter results reflect continued improvement in our financial performance driven by our prior investments in productivity initiatives, restructuring actions and the integration of recently acquired businesses,” Federal-Mogul Co-CEO Daniel Ninivaggi said in a statement.
The company said April 27 that a committee is reviewing a proposal by billionaire investor Mr. Icahn and his Icahn Enterprises L.P., the firm's majority shareholder, seeking to purchase its remaining stake in the company.
Icahn Enterprises, which owns 82 percent of the company, said in February that it is offering $7 per share to purchase Federal-Mogul's remaining stake.
The company abandoned plans to split into two separate entities in January.
Mr. Icahn, meanwhile, has been expanding his investments in auto parts retailing during the quarter, completing his $1 billion takeover of Pep Boys, which has 800 stores, after a bidding war with Bridgestone Americas, which also operates a nationwide chain of retail automotive outlets.
This report appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.