Federal-Mogul Corporation has reported solid year-over-year results with third quarter sales of $1,692 million, gross margin of $279 million — precisely what it reported for the same period in 2007 — pre-tax earnings of $22 million and net income of $4 million.
Cash flow in the third quarter 2008 improved to $25 million, versus a loss of $114 million in the same period of 2007. (All figures in U. S. dollars.)
These sales and operating results are comparable to levels of one year ago; however, third-quarter 2008 performance was attained in a far more challenging market environment than in the third quarter of the prior year.
The third quarter of 2008 was marked by a faltering global automotive market where new vehicle sales and production rates fell as a result of a major automotive market downturn.
Federal-Mogul sales for the three-month period ending September 30, 2008 increased $6 million to $1,692 million, compared to $1,686 million during the same period a year ago.
Favourable foreign currency exchange lifted sales by $65 million in Europe and offset volume declines occurring largely in North America, while Asia-Pacific and other markets continued to perform.
Federal-Mogul, in Q3 2008, recorded a gross margin of $279 million or 16.5% of sales, compared to identical results, $279 million or 16.5% of sales, in Q3 2007. The company’s Operational EBITDA was $178 million or 10.5% of sales, compared to $166 million or 9.8% of sales during the same period in 2007, representing an increase of $12 million or 7%.