Federal-Mogul reports $1.46 million first-quarter operational EBITDA

By Caroline Salls

Pittsburgh, April 19 - Federal-Mogul Corp. reported $146 million in operational EBITDA for the three months ended March 31 on $1.6 billion in net sales, according to a company news release.

In the same period of 2005, the company posted $127 million in operational EBITDA on $1.63 billion in net sales.

The increase in operational EBITDA was attributed to productivity improvements reported within gross margin and reduced selling, general and administrative expenses.

The company said the most significant factors impacting sales were $13 million in increased volumes and $51 million of unfavorable foreign currency.

Selling, general and administrative expenses decreased by $22 million for the first quarter of 2006, when compared to the same period in 2005.

Federal-Mogul reported a $39 million net loss from continuing operations before income taxes for the first quarter of 2006, slipping from a $22 million net loss from continuing operations before income taxes for the same period of 2005.

According to the release, the combined impact of improved gross margin and reduced selling, general and $32 million in administrative expenses was more than offset by increases in asset impairment and restructuring charges of $40 million and $10 million of higher interest expense.

Cash and cash equivalents were at $395.6 million for the first quarter of 2006, compared with $387.2 million in the same period of 2005.

Combining cash provided from or used by operating activities with cash used by investing activities, the company said it generated $31 million in positive cash inflows of for the 2006 quarter, an improvement of $76 million when compared with net cash outflows of $45 million for the comparable period of 2005.

"Federal-Mogul continues to progress toward emergence from U.K. Administration and Chapter 11 in the U.S.," chairman, president and chief executive officer Jose Maria Alapont said in the release.

"Despite challenging market conditions for the quarter ended March 31, 2006, the company increased net sales, excluding foreign exchange, improved EBITDA to $146 million and generated positive cash inflows of $31 million, $76 million better than the comparable period of 2005."

Federal-Mogul, a Southfield, Mich.-based auto parts manufacturer, filed for bankruptcy on Oct. 1, 2001 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 01-10578.

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