Federal-Mogul reports $1 billion loss for 2001

SOUTHFIELD, Mich. (April 2)—Federal-Mogul Corp. reported a loss of just more than $1 billion last year compared to a net loss of $281.5 million in 2000. Consolidated net sales fell 8.5 percent to $5.5 billion during 2001 from $ 6.01 billion in 2000. Results included a $38 million restructuring charge; a $545.1 million charge for adjustments of assets held for sale and other long-lived assets to fair value; a $36.3 million loss on the divestiture of businesses; and charges of $82.6 million related to the effect of goodwill impairment and $60.1 million relating to the effect of divestitures. Sealing Systems and System Protection sales, which account for 11 percent of the total, decreased 14 percent to $587.7 million in 2001. The decrease was the result of declining sales in both the automotive and heavy-duty OE markets, price reductions, and the impact of certain European customer programs that ended and have yet to be replaced with new programs, Federal-Mogul said in its 10-K filing with the Securities and Exchange Commission. The company's stock continues to trade on the New York Stock Exchange in the low to mid-80-cent range.