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Federal-Mogul Expands Existing Restructuring Plan in Response to Automotive Industry Downturn and 2009 Outlook
Posted by: gurufocus (IP Logged)
Date: December 22, 2008 08:04PM

Press Release: Federal-Mogul Expands Existing Restructuring Plan in Response to Automotive Industry Downturn and 2009 Outlook with and P/S ratio of 0.02.

More on FDMLQ.OB: Gurus buys and sells of FDMLQ.OB 10-year financial history of FDMLQ.OB. Insider buys/sells of FDMLQ.OB.

Press Release:

SOUTHFIELD, Mich., Dec. 19 /PRNewswire-FirstCall/ -- Federal-MogulCorporation (Nasdaq: FDML) today announced it has expanded its existingrestructuring plan announced September 17, 2008, in response to the continuedchallenging conditions in the global automotive market. Federal-Mogul plans toimplement several initiatives designed to further consolidate, downsize orclose additional locations. These actions are expected to reduce thecompany's global workforce by approximately 4,600 additional positions orabout 10 percent. The company is not disclosing the specific sites at thistime, pending further evaluation and consultations with appropriate parties.The additional restructuring actions will begin during the first quarter of2009. Preliminary cost estimates for the additional restructuring areapproximately $80 million through the end of 2009, and are in addition toexpense estimates included in the original plan announced in September 2008.

(Logo: [www.newscom.com] )

"We continue to take actions in response to the ongoing significantdownturn in regional markets and global industry outlook. These measures arerequired to prepare the company for the unprecedented challenges in theautomotive industry," said Jose Maria Alapont, Federal-Mogul President andCEO.*

About Federal-Mogul

Federal-Mogul Corporation is a leading global supplier of powertrain andsafety technologies, serving the world's foremost original equipmentmanufacturers of automotive, light commercial, heavy-duty and off-highwayvehicles, as well as in power generation, aerospace, marine, rail, industrial,and the worldwide aftermarket. The company's leading technology andinnovation, lean manufacturing expertise, as well as marketing anddistribution deliver world-class products, brands and services with qualityexcellence at a competitive cost. Federal-Mogul is focused on its sustainableglobal profitable growth strategy, creating value and satisfaction for itscustomers, shareholders and employees. Federal-Mogul was founded inDetroit in 1899. The company is headquartered in Southfield, Michigan, andemploys nearly 47,000 people in 35 countries. Visit the company's Web site atwww.federalmogul.com.

Forward-Looking Statements

Statements contained in this press release, which are not historical fact,constitute "Forward-Looking Statements." Actual results may differ materiallydue to numerous important factors that are described in Federal-Mogul's mostrecent report to the SEC on Form 10-K, which may be revised or supplemented insubsequent reports to the SEC on Forms 10-Q and 8-K. Such factors include,among others, the cost and timing of implementing restructuring actions, theCompany's ability to generate cost savings or manufacturing efficiencies tooffset or exceed contractually or competitively required price reductions orprice reductions to obtain new business, conditions in the automotiveindustry, and certain global and regional economic conditions. Federal-Moguldoes not intend or assume any obligation to update any forward-lookingstatement to reflect events or circumstances after the date of this pressrelease.

CONTACT: Paula Silver - 248-354-4530
             Jennifer Rass - 248-354-7502

    * Please note accent over 'e' in Jose Maria Alapont

Source: PRNewsWire

More on FDMLQ.OB: Gurus buys and sells of FDMLQ.OB 10-year financial history of FDMLQ.OB. Insider buys/sells of FDMLQ.OB.



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