Federal-Mogul Corporation : Federal-Mogul Reports Q2 2013 EPS of $0.57; Operational EBITDA of $163 Million and Free Cash Flow of

   Federal-Mogul Corporation : Federal-Mogul Reports Q2 2013 EPS of $0.57;
     Operational EBITDA of $163 Million and Free Cash Flow of $73 Million

Q2 Highlights

  oSales of $1.8 billion, up $97 million, from $1.7 billion in Q2 2012
  oNet income of $56 million, up from a net loss of $(59) million in Q2 2012
  oEPS of $0.57, up from a loss per share of $(0.60) in Q2 2012
  oOperational EBITDA of $163 million or 9.2% of sales, versus $157 million
    in Q2 2012
  oFree cash flow of $73 million

Southfield, Michigan, July 22, 2013 . Federal-Mogul Corporation  (NASDAQ:FDML) 
today reported financial results for the second quarter ended June 30,  2013. 
Net Sales  for the  second quarter  were $1,772  million, an  increase of  $97 
million or 6%  (with negligible  exchange impact) on  a continuing  operations 
basis,  versus  the  second  quarter  of  2012.  Net  income  attributable  to 
Federal-Mogul in Q2 2013  was $56 million  or $0.57 per share,  up from a  net 
loss in Q2 2012 of  $(59) million or $(0.60) loss  per share. Net income  was 
comparable to Q2 2012 net income of $60 million when excluding the impact of a
non-cash impairment of $(119) million recorded in Q2 2012. Operational EBITDA
in Q2 2013 was $163  million or 9.2% of sales  versus $157 million or 9.3%  of 
sales in Q2 2012 on a continuing operations basis. The improved EBITDA result
is driven by higher volumes in  a more stable market environment coupled  with 
the  company's  margin  improvement   actions,  including  restructuring   and 
sustainable cost  reductions. The  company  generated free  cash flow  of  $73 
million in the quarter.

$ millions               Q2 2013 Q2 2012  B/(W)
Net Sales                  $1,772  $1,675    $97
Gross Margin                  280     257     23
% of sales                 15.8%   15.3%   0.5%
SG&A                        (185)   (173)  (12)
% of sales                  10.4%   10.3% (0.1)%
Net Income (Loss)              56    (59)    115
Attributable to F-M
Earnings Per Share           0.57  (0.60)   1.17
in dollars, diluted EPS
Operational EBITDA            163     157      6
% of sales                   9.2%    9.3% (0.1)%
Free Cash Flow                $73  $(105)   $178

"Federal-Mogul's second quarter  results show the  benefit of cost  reductions 
and restructuring  actions  implemented  to eliminate  loss-making  units  and 
improve overall  operating leverage,"  said Rainer  Jueckstock,  Federal-Mogul 
co-CEO and CEO  Powertrain Segment.  "The cash  flow in  Q2 2013  is also  an 
important sign of improved working  capital stability. While the results  are 
encouraging, we are  continuing to  implement restructuring  actions to  raise 
capacity utilization and improve operating performance," he said.

Federal-Mogul Completes Rights Offering
Federal-Mogul, on  July  9,  2013, concluded  a  shareholder  rights  offering 
generating proceeds  of $500  million. The  offering was  conducted to  raise 
equity to further strengthen  the company's balance  sheet and facilitate  the 
company's debt  refinancing. The  company will  continue to  evaluate  market 
conditions and  other  relevant  factors  in  connection  with  the  potential 
refinancing of all or a portion of its outstanding indebtedness. 

Q2 Segment Revenue and  EBITDA (the following  sales growth rate  comparisons 
versus the prior year are in constant dollars, based on continuing  operations 
and exclude major items not recurring in the two periods)

Powertrain Segment (PT) Revenue and EBITDA
Federal-Mogul's Powertrain (PT)  segment had  revenue of $1.1  billion, a  $68 
million or 5% increase versus  Q2 2012. Revenue in  North America was up  6%, 
while light vehicle production  grew by 5% in  Q2 2013 and commercial  vehicle 
(CV) production declined  9% versus  Q2 2012.  In Europe,  where PT  derives 
approximately 50% of its revenue, Q2 2013 revenue was up 1% despite a  decline 
in light vehicle  production of 3%  and decline  in CV production  of 8%.  PT 
revenue in  ROW was  up  13%, including  an  increase in  Federal-Mogul  China 
revenue of  more than  30%  during the  quarter  while Chinese  light  vehicle 
production increased 12% when compared to Q2 2012.

Powertrain segment EBITDA was $106 million or 9.7% of sales, compared to  $102 
million in Q2 2012.  The PT business continues  to be negatively impacted  by 
slower commercial vehicle and industrial equipment production. The CV  market 
in the North America in Q2 2013 was  down 9% versus Q2 2012 and the CV  market 
in Europe was down 8% during the same periods of comparison. Product mix  due 
to the European market shift to a higher percentage of gasoline power vehicles
continued to negatively impact the segment in Q2 2013.

"We see some encouraging signs of European market stabilization and,  combined 
with our ongoing capacity rationalization, the company will be positioned  for 
increasingly favorable performance as volumes improve," said Jueckstock.

Vehicle Components Segment (VCS) Revenue and EBITDA
Federal-Mogul's VCS business had  revenue of $783 million  in Q2 2013, up  $34 
million or 5% versus Q2 2012. The  VCS revenue in North America was down  1% 
versus Q2 2012 due  to the planned cessation  of selected business  contracts. 
The VCS segment in Europe increased  revenue by 10% on a comparable  business 
basis, or  20%  when including  the  favorable  impact of  the  BERU  ignition 
distribution agreement.
"We had a very solid quarter in the EMEA region in Q2 2013 due principally  to 
market share  gains. We  are  leveraging our  well-known brands  and  rapidly 
expanding the portfolio to  drive improved sales in  this region," said  Kevin 
Freeland, Federal-Mogul co-CEO and CEO Vehicle Components Segment. "Our sales
are also  stronger due  to an  intense  focus on  improving order  fill  rates 
through better  inventory management  and improved  distribution systems,"  he 

VCS segment EBITDA in Q2  2013 was $57 million or  7.3% of sales, up from  $55 
million in  Q2  2012. Several  restructuring  actions have  been  implemented 
within the VCS segment, including the closure or downsizing of seven sites  in 
the previous 18  months. These  actions will increasingly  impact results  as 
these restructuring programs are completed.

"Restructuring and  downsizing actions,  combined  with stronger  volumes  are 
improving  the  VCS  bottom  line.  We  are  implementing  several  important 
strategies to improve our presence  in developing markets, raise  distribution 
efficiency and  gain  greater premium  brand  awareness. These  actions  will 
further reinforce our capability to deliver profitable growth," said Freeland.

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  ability 
to refinance the Company's outstanding indebtedness on commercially reasonable
terms  or  at  all;  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;  the 
costs, timing and success of  the Company's restructuring actions;  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.


Steve Gaut (248) 354-7826 steven.gaut@federalmogul.com


Federal-Mogul Press Release Financials


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Source: Federal-Mogul Corporation via Thomson Reuters ONE
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