SOUTHFIELD, Mich. (Feb. 26, 2009)—Aggressive global restructuring and cost reductions helped Federal-Mogul Corp.'s sales for 2008 stay in line with the previous year, despite a fourth quarter drop and a shaky automotive market, the firm said.
Federal-Mogul posted net sales of $6.87 billion for 2008, which was comparable to 2007's $6.91 billion.
Net sales for the quarter was $1.3 billion in 2008 and $1.7 billion for the same period the previous year. For the first three quarters, the company experienced year-over-year sales growth of 7 percent.
Operating costs went down 23 percent for the fourth quarter, though, helping to offset the sales, Federal-Mogul said. Cost reduction measures included eliminating premium shifts, modifying shift patterns, staff reductions and shorter workweek schedules.
The company posted a net loss of $468 million compared to a net income of $1.4 billion in 2007. The disparity was caused in large part by one-time expenses connected to severance payments and restructuring costs. Adjusted net income for 2008 and 2007 were $113 million and $75 million respectively on consistent sales levels.
In the second half of 2008, the company announced more cost cutting efforts to help its 2009 bottom line, including plant closings, shuttering some distribution centers, and a 26 percent cut in its work force compared to its size last July.