News / Southfield-based Federal-Mogul posts $35 million profit
Date: 2016-05-05
Southfield-based Federal-Mogul posts $35 million profit
Federal-Mogul Holdings Corp. Wednesday reported a $35 million profit in the first quarter as sales in its aftermarket parts division rose 7.5 percent.
The supplier's profit, good for 21 cents per share, compares with an $11 million net loss, or 7 cents per share, in the first quarter last year.
The company, based in Southfield, and ranked No. 57 on Automotive News' list of the top 100 global parts suppliers, has in recent quarters struggled to maintain profitability, most recently reporting a $58 million net loss in the fourth quarter of 2015.
Federal-Mogul reported first-quarter net sales of $1.9 billion, a 3 percent rise from 2015. Revenue from its powertrain parts unit was flat at $1.1 billion, while its aftermarket, or motorparts, revenue rose 7.5 percent to $831 million on growth of business in the U.S., Canada and China.
The motorparts unit produces a variety of brand-name aftermarket parts such as Champion spark plugs, ANCO wiper blades, Fel-Pro engine products and Wagner brake parts.
"Our first quarter results reflect continued improvement in our financial performance driven by our prior investments in productivity initiatives, restructuring actions and the integration of recently acquired businesses," Federal-Mogul Co-CEO Daniel Ninivaggi said in a statement.
Federal-Mogul said Wednesday a committee is reviewing a proposal by billionaire investor Carl Icahn and Icahn Enterprises LP, the company's majority shareholder, seeking to purchase its remaining stake in the company. Icahn Enterprises, which owns 82 percent of the company, said in February that it is offering $7 per share to purchase Federal-Mogul's remaining stake.
The company abandoned plans to split into two separate entities in January.
Icahn, meanwhile, has been expanding his investments in auto parts retailing during the quarter, completing his $1 billion takeover of Pep Boys, which has 800 stores.
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