) has penned an agreement to sell its connecting rod and camshaft
business to JD Norman Industries, Inc. The transaction includes
the sale of Federal-Mogul's connecting rod machining plant in
Windsor, Canada and the camshaft foundry plant in Lydney, UK.
Federal-Mogul's customers including
General Motors Company
Ford Motor Co.
), Chrysler, Linamar, Jaguar, Land Rover, PSA and others value
the Windsor and Lydney plants because of their high-quality
operations. JD Norman's industrial experience, business strategy
and relationships with key customers will favorably impact these
JD Norman Industries, a diversified manufacturer of metal
components and systems with operations in the U.S, Mexico, Canada
and the United Kingdom, will work for a smooth transition for
customers, employees and other stakeholders. It will also retain
Federal-Mogul's 230 associates currently working in these
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 at a competitive cost. Currently, it retains a Zacks
Rank #3 (Hold).
Federal-Mogul posted a 45.7% fall in earnings per share to 19
cents in the first quarter of 2013 from 35 cents in the
corresponding quarter last year. However, earnings per share
comfortably outpaced the Zacks Consensus Estimate of a loss of 29
cents. Net income declined 43.2% to $21.0 million from $37.0
million in the year-ago quarter.
Revenues also decreased 2.4% to $1.69 billion in the reported
quarter, missing the Zacks Consensus Estimate of $1.75 billion.
The year-over-decline was due to lower European light vehicle
shipment and reduced global commercial vehicle production.
Magna International Inc.
), a Zacks Rank #1 (Strong Buy) stock, is performing well in the
industry where Federal-Mogul operates.
FORD MOTOR CO (F): Free Stock Analysis Report
FEDERAL MOGUL-A (FDML): Free Stock Analysis
GENERAL MOTORS (GM): Free Stock Analysis
MAGNA INTL CL A (MGA): Free Stock Analysis
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