Federal-Mogul plans to increase its value

SOUTHFIELD, Mich. (May 15)—Federal-Mogul Corp. is attempting to increase its inherent value in order to find money to pay its creditors, asbestos claimants and shareholders. "We're focused on maximizing enterprise value in the interests of all constituents," Chairman and CEO Frank Macher said during the company's annual meeting. This year, management will invest $375 million to that end, including $166 million in productivity improvements. Increasing engineering resources also is a high priority, Macher said. Management's plan to take advantage of core competencies is working, he told shareholders. First-quarter results were in line with expectations, he said, "however, we still suffer from the strategies of the past." Federal-Mogul will write off $2.7 billion worth of goodwill in the second quarter. The write-offs are one time and will not include cash charges, Macher said.