) rebounded to profit in the second quarter of 2013 with earnings
per share of 57 cents as against a loss of 60 cents in the
corresponding quarter last year. Reported earnings per share
comfortably outpaced the Zacks Consensus Estimate of 39 cents.
Net income increased to $56.0 million from a loss of $59.0
million in the year-ago quarter. The year-over-year increase in
profit was due to cost reductions and restructuring actions
implemented by the company. Federal-Mogul closed the loss-making
units and improved the overall operating leverage during the
Revenues increased 5.8% to $1,772 million in the reported
quarter. However, it marginally missed the Zacks Consensus
Estimate of $1,778 million.
Revenues from the Powertrain Segment went up 5% to $1.1 billion.
Higher revenues from North America and enhanced light vehicle
production were offset by lower commercial vehicle production in
the region. Revenues from the European operation inched up 1%
despite declines in light vehicle and commercial vehicle
Revenues from ROW increased 13% driven by increases in revenues
and production from China. Operational EBITDA in the Powertrain
Segment increased 3.9% to $106.0 million from $102.0 million a
Revenues from the Vehicle Components Segment improved 5% to
$783.0 million, driven by higher revenues from European operation
owing to the company's strategy of rapidly expanding the
portfolio in this region.
Operational EBITDA in the Vehicle Components Segment increased
3.6% to $57.0 million compared with $55.0 million in the second
quarter of 2012. Restructuring activities and downsizing of seven
sites has benefited the segment results.
Federal-Mogul had cash and cash equivalents of $375.0 million as
of Jun 30, 2013, compared with $467.0 million as of Dec 31, 2012.
Total-term debt was $2.9 billion versus $2.8 billion as of Dec
In the first half of 2013, cash outflow from operating activities
amounted to $116.0 million compared with cash inflow of $7.0
million in the same period of 2012. Capital expenditure amounted
to $186.0 million compared with $223.0 million a year ago.
Federal-Mogul is a leading global supplier of powertrain, chassis
and safety technologies. 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.
Currently, it retains a Zacks Rank #2 (Buy).
Some other stocks that are performing well in the industry where
Federal-Mogul operates include
WABCO Holdings Inc.
American Axle & Manufacturing Holdings Inc.
). WABCO and Visteon carry a Zacks Rank #1 (Strong Buy), whereas
American Axle is a Zacks Rank #2 (Buy) stock.
AMER AXLE & MFG (AXL): Free Stock Analysis
FEDERAL MOGUL-A (FDML): Free Stock Analysis
VISTEON CORP (VC): Free Stock Analysis Report
WABCO HOLDINGS (WBC): Free Stock Analysis
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