Federal-Mogul Corporation : Federal-Mogul Reports Q1 2013 Results

      Federal-Mogul Corporation : Federal-Mogul Reports Q1 2013 Results

  *Q1 2013 net income of $21 million from continuing operations 
  *Operational EBITDA of $141 million in  Q1 2013, versus $165 million in  Q1 
  *First quarter 2013 sales of $1.7 billion, down (2)% versus Q1 2012 due  to 
    continued European  market weakness  and lower  global commercial  vehicle 

Southfield,  Mich.,  April  24,  2013  .  Federal-Mogul  Corporation  (NASDAQ: 
FDML)today announced Q1 2013 results with  sales of $1.7 billion, (2)%  lower 
than Q1  2012,  due  to  lower  European  light  vehicle  and  reduced  global 
commercial vehicle production, with  negligible exchange impact.  Operational 
EBITDA in Q1 2013 was $141 million or 8.3% of sales, down from $165 million or
9.5% of sales  in Q1  2012. When  compared to  the fourth  quarter 2012,  the 
company had 8%  higher sales and  stronger Operational EBITDA  as a result  of 
incremental volumes, cost reductions  and restructuring actions. The  company 
recorded $8 million  in restructuring charges  during Q1 2013  related to  its 
ongoing restructuring programs. Further  restructuring actions are  underway, 
potentially resulting in  approximately $80 million  in restructuring  charges 
and related payments for 2013.

Financial Summary                       Q1 2013 Q1 2012   B/(W) Q4 2012  B/(W)
($ millions)

Net Sales                                $1,699  $1,740   $(41)  $1,578   $121
Gross Margin                               $251    $277   $(26)    $169    $82
pct. of sales                            14.8%   15.9%  (1.1)%   10.8%   4.0%
SG&A                                     $(185)  $(188)      $3  $(171)  $(14)
pct. of sales                          (10.9)% (10.8)%  (0.1)% (10.8)% (0.1)%

Net Income from Continuing Operations       $21     $37   $(16)   $(73)    $94
Net (Loss) Profit                         $(34)     $32   $(66)   $(80)    $46
attributable to Federal-Mogul
(Loss) Profit Per Share                 $(0.34)   $0.32 $(0.66) $(0.81)  $0.47
in dollars, diluted EPS
Operational EBITDA^1                       $141    $165   $(24)     $69    $72
pct. of sales                              8.3%    9.5%  (1.2)%    4.3%   4.0%
Cash Outflow^2                           $(186)  $(112)   $(74)   $(77) $(109)

Detailed schedules are available at the end of this press release

The company had  a cash outflow  of $(186) million  in the quarter,  including 
$(46) million in net payments related to divesture and restructuring  actions, 
$(23) million additional working capital  to support a new global  aftermarket 
distribution agreement and normal seasonal working capital requirements.

"We are coming  out of  a fourth quarter  2012 earnings  trough with  improved 
operating performance in the first quarter 2013. We now have the majority  of 
our  operations  running  at  a  more  balanced  load  and  we  have   further 
opportunities through restructuring plans. Our Q1 operating results show  the 
benefit of our strong  drive for operating efficiency,  in spite of  continued 
European headwinds,"  said Rainer  Jueckstock,  co-CEO Federal-Mogul  and  CEO 
Powertrain Segment.

"We are continuing  to make  business decisions  to align  our commercial  and 
operational strategies  for  better profitability,"  said  Michael  Broderick, 
co-CEO Federal-Mogul  and  CEO  Vehicle  Components  Segment.  "While  growth 
remains a priority,  we will  also reinforce  and differentiate  Federal-Mogul 
brands with strong  service and delivery  performance, supported by  effective 
marketing  programs  and  commercial  strategies  to  reinforce  our   premium 
position," he said.

Restructuring Program Update

The company,  as  previously  announced,  divested  its  Sintertech  business, 
consisting of three manufacturing plants  in France, during the first  quarter 
2013. The  transaction resulted  in a  cash outflow  of $(42)  million  which 
contributed to the loss from  discontinued operations of $(53) million  during 
the  quarter.  In   2012,  the  Sintertech   business  contributed   negative 
Operational EBITDA  of  $(13) million  and  a net  loss  of $(21)  million  to 
Federal-Mogul results.  This divestiture  eliminates a  substantial  non-core 
business  from  the  company's  portfolio  and  positively  impacts   reported 
operating performance.

Federal-Mogul announced in  July 2012  the downsizing or  closure of  selected 
North American  facilities  in  line  with  a  program  to  increase  capacity 
utilization in its braking and wipers business lines. During the quarter, the
company ceased manufacturing operations at its Winchester, Va. braking  plant. 
The company is on schedule to complete additional restructuring and migration
of its global braking and wipers manufacturing footprint to low-cost countries
in line with the previously announced plan.

As part  of  Federal-Mogul's  multi-year restructuring  program,  the  company 
during Q1  2013 began  discussions with  employee representatives  at  several 
European plants regarding actions to restore competitiveness.

Powertrain Segment Revenue and Operating Results

Federal-Mogul's Powertrain Segment (PT) in  Q1 2013 had total segment  revenue 
of $1,062 million,  down $(25)  million, or (2)%  lower on  a constant  dollar 
basis versus Q1 2012.

In the North American market where 34%  of PT revenue is derived, revenue  was 
slightly favorable compared to Q1  2012, while light vehicle production  rates 
were slightly  below Q1  2012 levels.  Commercial vehicle  production in  the 
region was (13)% lower in Q1 2013, contributing to softer segment revenue  for 
the PT business. 

In Europe,  the Powertrain  Segment had  (5)% lower  revenue during  Q1  2013, 
compared to (13)% lower light vehicle and commercial vehicle production in the
region. The company continues to adjust  labor and closely manage other  cost 
factors to absorb the  negative mix impact of  slower diesel sales in  Europe, 
which compounds the margin impact of lower overall European revenue.

PT recorded Operational EBITDA of $90 million from continuing operations in Q1
2013, down $(17) million from the same  period in 2012 on $(25) million  lower 
sales. The EBITDA  result for Q1  2013 was  $58 million higher  than the  $32 
million recorded  in  Q4  2012,  demonstrating the  positive  impact  of  cost 
reduction and portfolio restructuring actions.

Vehicle Components Segment Revenue and Operating Results

The Vehicle Components  Segment (VCS) had  $737 million total  revenue in  the 
quarter. The North American revenue was down (7)%, with the U.S.  aftermarket 
down (3)% due to  cessation of selected  non-strategic business contracts  and 
the decline of export shipments into Venezuela.

VCS experienced higher total revenue in  Europe, with lower OE revenue  offset 
by 22% higher constant dollar aftermarket revenue versus Q1 2012, including  a 
20% increase in revenue from  a distribution agreement implemented during  the 

VCS had Operational EBITDA of $51 million  in Q1 2013, down $(7) million  from 
Q1 2012 on $(17)  million lower sales.  When comparing Q1  2013 EBITDA to  Q4 
2012, VCS continues to increase operating profitability through  restructuring 
and stronger execution to drive improved business performance.

Analyst Call

The company will  hold a call  with analysts and  other interested parties  at 
10:00AM EST on April 24, 2013. Details for registering to join the call are at

About Federal-Mogul

Federal-Mogul Corporation  (NASDAQ:  FDML) is  a  leading global  supplier  of 
products and services to the  world's manufacturers and servicers of  vehicles 
and equipment  in the  automotive, light,  medium and  heavy-duty  commercial, 
marine,  rail,  aerospace,  power  generation  and  industrial  markets.   The 
company's  products  and  services  enable  improved  fuel  economy,   reduced 
emissions and enhanced vehicle safety.

Federal-Mogul operates two  independent business segments,  each with a  chief 
executive  officer   reporting   to  Federal-Mogul's   Board   of   Directors. 
Federal-Mogul's Powertrain Segment designs and manufactures original equipment
powertrain  components  and  systems   protection  products  for   automotive, 
heavy-duty, industrial and transport applications.

Federal-Mogul's Vehicle  Components  Segment  sells and  distributes  a  broad 
portfolio of products  through more  than 20  of the  world's most  recognized 
brands  in  the  global  vehicle  aftermarket,  while  also  serving  original 
equipment vehicle  manufacturers  with products  including  braking,  chassis, 
wipers and other vehicle components. The company's aftermarket brands include
ANCO^® wiper  blades;  Champion^®  spark  plugs,  wipers  and  filters;  AE^®, 
Fel-Pro^®, FP Diesel^®, Goetze^®, Glyco^®, Nüral^®, Payen^® and Sealed Power^®
engine products;  MOOG^®  steering  and suspension  parts;  and  Ferodo^®  and 
Wagner^® brake products. Federal-Mogul  was founded in  Detroit in 1899.  The 
company employs 45,000 people in 34 countries, and its worldwide  headquarters 
is in Southfield, Michigan, United States. For more information, please  visit 

Forward-Looking Statements
Statements contained in  this press  release, which are  not historical  fact, 
constitute "Forward-Looking Statements." Actual results may differ  materially 
due to numerous important factors  that are described in Federal-Mogul's  most 
recent report to the SEC on Form 10-K, which may be revised or supplemented in
subsequent reports to the  SEC on Forms 10-Q  and 8-K. Such factors  include, 
among  others,  fluctuations  in  domestic  or  foreign  vehicle   production, 
fluctuations in the demand for vehicles containing our products, the Company's
ability to generate cost  savings or manufacturing  efficiencies to offset  or 
exceed contractually  or  competitively  required price  reductions  or  price 
reductions to obtain new business, conditions in the automotive industry,  the 
success of the  company's segmentation and  corresponding effects and  general 
global and  regional economic  conditions. Federal-Mogul  does not  intend  or 
assume any obligation to update any forward-looking statements. 

1     Management  believes that Operational  EBITDA provides  supplemental 
information for management and investors to evaluate the operating performance
of its business.  Management uses,  and believes that  investors benefit  from 
referring to Operational EBITDA in assessing the Company's operating  results, 
as well  as in  planning, forecasting  and analyzing  future periods  as  this 
financial measure approximates the cash  flow associated with the  operational 
earnings of the Company. Additionally, Operational EBITDA presents measures of
corporate performance exclusive  of the  Company's capital  structure and  the 
method by  which assets  were acquired  and financed.  Operational EBITDA  is 
defined  as  earnings   before  interest,  income   taxes,  depreciation   and 
amortization, and certain items such as restructuring and impairment  charges, 
Chapter 11 and U.K. Administration  related reorganization expenses, gains  or 
losses on the  sales of  businesses, the  non-service cost  components of  the 
U.S.-based funded  pension plan  and  OPEB curtailment  gains or  losses  from 
continuing operations.
2  Cash flow is equal to  net cash provided by operating activities less  net 
cash used by investing activities, as  set forth on the attached statement  of 
cash flows.

Media and Investors:
Steve Gaut     
(248) 354-7826    

David Pouliot
(248) 354-7967

                                   # # #

Federal-Mogul Press Release Financial Statements


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Source: Federal-Mogul Corporation via Thomson Reuters ONE
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