Solid Quarter For Federal Mogul

Federal-Mogul Corporation today reported record second quarter sales of $2 billion (all figures in USD) and an eighth consecutive quarter of year-over-year increased sales combined with a sharp rise in quarterly net income to $90 million.
Sales for the three-month period ending June 30, 2008, were a record $1,995 million, an increase of 13 percent, compared to $1,763 million for the same period a year ago.
Federal-Mogul reported a gross margin of $396 million or 19.8 percent of sales, compared to $322 million or 18.3 percent of sales, representing an increase of $74 million, or 23 percent over the prior year.
The company’s operational EBITDA(1) was $257 million or 12.9 percent of sales, compared to $212 million or 12.0 percent of sales during the same period in 2007, representing an increase of $45 million or 21 percent.
The company recorded net income of $90 million or earnings per share of $0.90, up from $4 million in second quarter 2007.
“We experienced another record sales quarter with strong earnings performance.
“We have anticipated and reacted to changing market conditions including a market downturn in mature automotive markets.
“We implemented numerous successful actions to offset macro-economic factors and benefited from our strong market, customer and product diversification,” said Jose Maria Alapont, Federal-Mogul president and CEO.