July 28, 2008 09:00 AM Eastern Daylight Time
SOUTHFIELD, Mich., July 28 /PRNewswire-FirstCall/ -- Federal-Mogul Corporation (NASDAQ: FDML) on Friday, July 25, released the company's second quarter 2008 financial results and conducted a web cast to highlight the company's record net sales and eighth consecutive quarter of year-over-year growth and strong net income. The company's conference call with analysts and media is available for replay on http://www.federalmogul.com/investors. The company also filed its second quarter Form 10-Q with the SEC on Friday, July, 25, 2008.
Highlights of Federal-Mogul's Q2 financial performance include:
-- Record quarterly sales of $2 billion, a 13% increase, versus
$1.8 billion in Q2 2007 and eighth consecutive quarter of
year-over-year sales increase
-- Gross margin improved by 23% or $74 million to $396 million or 19.8%,
compared to $322 million in second quarter 2007
-- SG&A at 10.6% of sales, compared to 12.1% of sales during the same
period in 2007
-- Operational EBITDA* increased 21% to $257 million from $212 million in
Q2 2007
-- Net income improved to $90 million or earnings per share of $0.90,
compared to $4 million in Q2 2007
-- Strong balance sheet and liquidity of $1.3 billion
-- Market, customer and product diversification with no single customer
accounting for more than 6% of revenue.
An audio replay of the call is available through August 29, 2008 at:
Domestic calls: 888-286-8010
International calls: 617-801-6888
Pass code I.D. - 35689660
The second quarter press release can be downloaded at http://www.federalmogul.com/Investors/.
Investor Relations Contact: David Pouliot
(248) 354-7967
David.Pouliot@federalmogul.com
* Operational EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, and certain items such as restructuring and impairment charges, Chapter 11 related reorganization expenses, gains or losses on the sales of businesses, and the impact on gross margin of the fresh-start reporting valuation of inventory as described in the attached reconciliation of non-GAAP financial measures.
About Federal-Mogul
Federal-Mogul Corporation is a leading global supplier of powertrain and safety technologies, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, industrial, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. The company's leading technology and innovation, lean manufacturing expertise, as well as marketing and distribution deliver world-class products, brands and services with quality excellence at a competitive cost. Federal-Mogul is focused on its sustainable global profitable growth strategy, creating value and satisfaction for its customers, shareholders and employees. Federal-Mogul was founded in Detroit in 1899. The company is headquartered in Southfield, Michigan, and employs 50,000 people in 35 countries. Visit the company's Web site at http://www.federalmogul.com/.
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, the cost and timing of implementing restructuring actions, 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, and certain global and regional economic conditions. Federal-Mogul does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
CONTACT: Paula Silver - 248-354-4530
Jennifer Rass - 248-354-7502
F E D E R A L - M O G U L C O R P O R A T I O N
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Millions of Dollars)
(Unaudited)
Successor Predecessor Successor Predecessor
Company Company Company Company
Three Months Ended Six Months Ended
June 30 June 30
--------------------- ---------------------
2008 2007 2008 2007
------- ------- ------- -------
Income before income taxes $123.4 $25.1 $111.5 $60.7
Depreciation and amortization 82.7 88.2 171.1 172.1
Chapter 11 and U.K. Administration
related reorganization expenses 3.2 27.6 13.0 41.2
Interest expense, net 42.4 51.9 90.6 101.9
Restructuring expense, net 1.0 13.5 2.7 29.6
Fresh-start inventory adjustment - - 68.2 -
Other 3.9 6.0 5.2 6.2
-------- -------- -------- --------
Operational EBITDA $256.6 $212.3 $462.3 $411.7
======== ======== ======== ========
Management believes that Operational EBITDA most closely approximates
the cash flow associated with the operational earnings of the Company
and uses Operational EBITDA to measure the performance of its
operations. Operational EBITDA is defined as earnings before interest,
income taxes, depreciation and amortization, and certain items such as
restructuring and impairment charges, Chapter 11 related reorganization
expenses, gains or losses on the sales of businesses, and the impact on
gross margin of the fresh-start reporting valuation of inventory.
SOURCE: Federal-Mogul Corporation
CONTACT: Paula Silver, +1-248-354-4530, or Jennifer Rass,
+1-248-354-7502, both of Federal-Mogul Corporation
Web site: http://www.federal-mogul.com/
http://www.federalmogul.com/investors
Company News On-Call: http://www.prnewswire.com/comp/306225.html
