) revealed that its Powertrain Segment has divested its
Sintertech SAS division to "TMC" on Mar 8, 2013. TMC is a closely
held subsidiary controlled by Thierry Morin - a French
Industrialist and former Chairman and Chief Executive Officer of
Sintertech develops, manufactures and sells powdered metal
components for engines and gearboxes for vehicle applications and
other industrial equipment. It also produces powdered metal
filtration elements primarily for the chemical industry under
Sintertech, Metafram, Metagliss and Poral brand names.
The business includes three manufacturing plants in France
located in Veurey-Voroize, Pont de Claix and Oloron employing
more than 400 people. Despite being popular in European
industries for production of powdered metal components for a wide
variety of applications, Sintertech business does not form a part
of core Federal-Mogul Powertrain's long-term portfolio strategy.
Federal-Mogul, a Zacks Rank #4 (Sell) stock, reported an adjusted
loss of $41 million or 42 cents per share in the fourth quarter
of 2012 in sharp contrast to a profit of $52 million or 53 cents
in the same quarter of 2011. With this, the company missed the
Zacks Consensus Estimate of a profit of 15 cents per share.
Revenues in the quarter slid 4% (2% on a constant currency basis)
to $1.6 billion due to a 13% decline in global commercial and
industrial engine production, and a 14% decrease in European
light vehicle production, as well as a shift in mix within light
vehicle production from higher content diesel to gasoline
products. Adjusted Operational EBITDA dipped 45.1% to $84 million
from $153 million in the fourth quarter of 2011.
Federal-Mogul is a leading supplier of products and services to
global manufacturers and service providers of vehicles and
equipment in the automotive, light, medium and heavy-duty
commercial, marine, rail, aerospace, power generation and
industrial markets. The company's Powertrain Segment designs and
manufactures original equipment powertrain components and systems
protection products for automotive, heavy-duty, industrial and
Federal-Mogul expects European sales to improve based on its
recovery in the second half of the year. The company also expects
a shift in mix to diesel from gasoline engines in the long run
since the former is preferred by Europeans for being more fuel
efficient. Federal-Mogul also anticipates stability in its core
aftermarket business in North America as it is gradually exiting
unprofitable businesses and focuses on product differentiation.
While we avoid Federal-Mogul, a few stocks from the same industry
that warrant a look include
STRATTEC Security Corporation
). Gentherm and STRATTEC Security are Zacks Rank #1 (Strong
Buy) stocks while Oshkosh carries a Zacks Rank #2 (Buy).
FEDERAL MOGUL-A (FDML): Free Stock Analysis
OSHKOSH CORP (OSK): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
GENTHERM INC (THRM): Free Stock Analysis
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