SOUTHFIELD, Mich. (July 27, 2012)—Federal-Mogul Corp. reported a net loss of $59 million for the second quarter in 2012, compared with net earnings of $64 million a year earlier.
The loss, however, included a $119 million of non-cash impairment charges, without which the company said it would have posted a net income of $53 million.
The automotive parts supplier said sales dropped 5 percent on the quarter to $1.7 billion, mainly because of a negative impact on foreign currencies versus the U.S. dollar.
In the second quarter the company announced plans to close its Michigan City, Ind., plant and consolidate production at its Juarez, Mexico plant. That relocation—along with downsizing a brake friction facility—will cost Federal-Mogul $60 million, the firm said, with an initial charge of $7 million recorded in the second quarter.
For the first half of 2012, the company posted a net loss of $26 million, compared with earning of $115 million in 2011. Sales fell 1.6 percent to $3.47 billion.