DETROIT (Feb. 8) — Auto parts supplier Federal-Mogul Corp. said its operating financial performance improved in 2006 as it prepares to emerge from more than five years of bankruptcy protection this spring.
However, a one-time $501 million settlement charge related to the Chapter 11 bankruptcy case kept Federal-Mogul's finances for the fourth quarter and 2006 well into the red.
The company reported a net loss of $467 million on revenue of $1.54 billion during the fourth quarter, compared with a net loss of $204 million on revenue of $1.49 billion during the same quarter a year earlier. For 2006, Federal-Mogul posted a net loss of $550 million on revenue of $6.33 billion, compared with a 2005 net loss of $334 million on revenue of $6.29 billion.
For the quarter, Federal-Mogul reported earnings before taxes and other non-operating charges of $170 million, compared with $153 million during the same quarter in 2005. For all of 2006, it posted $625 million in earnings before non-operating charges compared with $554 million during 2005.
Federal-Mogul, which filed for bankruptcy protection in October 2001 because of asbestos liabilities, is appearing in U.S. Bankruptcy Court in Wilmington, Del., on May 8 to seek approval of its reorganization plan.