Federal-Mogul Corp. said it will file a financial reorganization
plan in U.S. Bankruptcy Court on March 6, in an effort to climb out of
Chapter 11 late this summer, according to Chip McClure, president and
chief operating officer.
The Southfield, Mich. company reported a fourth-quarter loss,
including pension and restructuring charges, of $113 million, or $1.33 a
share, compared with a loss of $1.37 a share a year ago. Excluding
items, the company reported an operating loss of $17 million, smaller
than the year-ago loss from operations of $23 million.
McClure said Federal-Mogul increased productivity in the quarter
through restructuring and cost-cutting. Sales were about flat for the
quarter, at nearly $1.2 billion. McClure said the company has continued
to receive support from customers since it went into Chapter 11.
Auto makers account for 55 percent of the company's annual
sales, while after-market customers account for the remaining 45
percent.
The company, whose products include Champion spark plugs and Wagner
brake and lighting products, in October 2001 filed for Chapter 11
protection from mounting asbestos-liability lawsuits related to T&N
LLC, a unit in the U.K it bought in 1998. With the bankruptcy
reorganization, Federal-Mogul will wipe out the company's asbestos
liability.
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