Federal-Mogul reports third-quarter losses

SOUTHFIELD, Mich. (Nov. 14)—Federal-Mogul Corp. reported a net loss of $810.1 million for the third quarter ended Sept. 30, compared to a $7.6 million loss it took in the same period last year. Its sales for the most recent quarter fell 9.7 percent to $1.28 billion. The company said its third-quarter results were hurt by a $177 million increase in the tax valuation allowance, a $496 million impairment of certain long-lived assets and $87 million in losses related to the divestitures of non-core businesses and the goodwill associated with them. For the nine-month period, the seal maker posted a net loss of $889.8 million vs. net earnings of $56.2 million in 2000, on a 10.7-percent decline in sales. The company filed for Chapter 11 bankruptcy protection on Oct. 1