Federal-Mogul quarterly profit drops
DETROIT (Reuters) - U.S. auto parts supplier Federal-Mogul Corp (FDML.O) reported a 74 percent drop in quarterly profit on Wednesday and said it planned to close several facilities in response to a major market downturn.
Federal-Mogul, which emerged from bankruptcy protection in late 2007, is in the process of slashing 4,000 jobs, or 8 percent of its global workforce, as part of restructuring steps it estimated would cost up to $80 million through 2009.
Net income fell to $3.6 million, or 4 cents per share, in the third quarter that ended September 30, from $13.7 million, or 15 cents per share, a year earlier.
Revenue was nearly unchanged at $1.69 billion.
The Southfield, Michigan-based supplier said it recorded $11 million for workforce severance costs in the third quarter.
It is on track to finalize workforce reductions and other cost-cutting actions by the end of 2009 under the restructuring plan, and expects to announce closure of a number of facilities during 2009, the company said.
Federal-Mogul makes pistons, spark plugs, windshield wiper blades, brake pads and dozens of other products for automotive manufacturers and the replacement parts market.
Billionaire investor Carl Icahn has acquired a 75 percent stake in the company and is nonexecutive chairman.
Federal-Mogul closed 29 manufacturing plants and seven distribution centers in North America and Europe and opened 10 facilities in the BRIC countries from 2003 through 2007.
(Reporting by Soyoung Kim, editing by Dave Zimmerman)
