Federal-Mogul Soars 31% After Profit, Gabelli Stake
Federal-Mogul Corp. (FDML), the auto-parts maker controlled by billionaire Carl Icahn, surged the most in more than four years after returning to a profit in the second quarter and investor Mario Gabelli boosted his stake to more than 5 percent.
The shares climbed 31 percent to $13.95 at the close in New York, the biggest one-day gain since Oct. 30, 2008. The Southfield, Michigan-based company’s stock has increased 74 percent this year, compared with a 24 percent rise for the Russell 2000 Index. (RTY) Federal-Mogul was the biggest gainer in the index today.
Icahn owns 81 percent of the maker of auto parts, including Anco wiper blades and Champion spark plugs. Federal-Mogul is closing factories, mostly in North America and Western Europe, and moving work to lower-cost locations such as Mexico, China and Poland by 2015.
Federal-Mogul reported before the start of regular trading that second-quarter net income totaled $56 million, or 57 cents a share, compared with a year-earlier loss of $59 million, or 60 cents. Revenue rose 5.8 percent to $1.77 billion from a year earlier. Gabelli, in a regulatory filing just before the close, said he raised his stake to 7.52 million shares, or 5.01 percent. Gabelli held a 3.14 percent stake as of March 31, according to data compiled by Bloomberg.
The company also said today it completed a shareholder rights offering on July 9 that generated $500 million in proceeds.
To contact the reporter on this story: Bill Koenig in Southfield, Michigan at email@example.com
To contact the editor responsible for this story: Jamie Butters at firstname.lastname@example.org