-
First quarter 2014 net sales of $1.8 billion, or
7 percent higher than Q1 2013
-
Net income from continuing operations improves
$22 million to $41 million in Q1 2014 from $19 million in Q1
2013
-
Q1 2014 net income of $40 million, up $74
million from Q1 2013
-
Improved operational EBITDA of $166 million in
Q1 2014, up 20 percent from Q1 2013
-
Free cash flow improvement of $64 million in
first quarter 2014 over Q1 2013
-
Completed $2.6 billion refinancing in April
2014; debt maturities extended up to 2021
Southfield, Mich., April 23,
2014...Federal-Mogul Holdings Corporation (NASDAQ: FDML) today
announced Q1 2014 results with sales of $1.8 billion, 7 percent
higher than the first quarter of 2013. Operating income improved
$21 million, or 31 percent in Q1 2014 over the same period last
year. Operational EBITDA was $166 million or 9.4 percent of
sales in the first quarter of 2014, up from 8.3 percent of sales,
or $138 million in Q1 2013. The company's improved financial
results for the quarter was driven by higher sales volumes in the
Powertrain division, as well as continued improvements in
operational performance. Free cash flow for first quarter 2014 was
cash usage of $79 million, reflecting normal Q1 working capital
requirements, reduced from cash usage of $143 million in the same
period in 2013.
Financial
Summary
($
millions) |
Q1 2014 |
Q1 2013 |
B/(W) |
Net Sales |
$1,779 |
$1,659 |
$120 |
Gross Margin
pct. of sales |
$273
15.3% |
$249
15.0% |
$24
0.3% |
SG&A
pct. of sales |
$(181)
(10.2%) |
$(184)
(11.1%) |
$3
0.9% |
|
|
|
|
Operating Income1 |
$88 |
$67 |
$21 |
|
|
|
|
Net Income from Continuing Operations |
$41 |
$19 |
$22
|
Net Income (Loss)
attributable to Federal-Mogul |
$40 |
$(34) |
$74 |
Earnings (Loss) Per Share
in dollars, diluted EPS |
$0.27 |
$(0.34) |
$0.61 |
|
|
|
|
Operational EBITDA2
pct. of sales |
$166
9.4% |
$138
8.3% |
$28
1.1% |
|
|
|
|
Free Cash Flow3 |
$(79) |
$(143) |
$64 |
Powertrain
(PT) Division Results
The PT division continued to gain market share in all regions with
revenue of $1,138 million in Q1 2014, up from $1,029 million in Q1
2013, an 11 percent increase. The PT revenue
improvement is attributed primarily to a 12 percent sales increase
in North America in Q1 2014, as compared to North American light
vehicle market growth of 4 percent versus Q1 2013. PT sales
in Europe grew by 10 percent in Q1 2014 on a constant dollar basis
versus Q1 2013, due in part to higher volumes on new engine
programs and growth in PT market share. During the same
comparison period, light vehicle production in the European market
was up 3 percent. PT sales in ROW grew by 16 percent on a constant
dollar basis driven by continued strong growth in China, where
sales increased by 29 percent versus Q1 2013. PT revenue
growth in all regions increased at a higher rate than the
underlying market production growth rates.
Powertrain's operational EBITDA
continued to improve, as the division recorded $116 million in Q1
2014, an increase of $29 million over the same period in 2013.
Operational EBITDA as a percent of sales increased to 10.2 percent
in the first quarter of 2014, versus 8.5 percent in Q1
2013.
"Federal-Mogul's Powertrain
division realized improved sales globally due to increased vehicle
production volumes, but also attributable to new customer contracts
for our products, services and technologies," said Rainer
Jueckstock, Federal-Mogul Co-CEO and CEO, Powertrain division.
"Additionally, we continue to see improvements in our operational
EBITDA, demonstrating our ongoing commitment to reduce costs and
increase efficiencies."
Vehicle
Components Solutions (VCS) Division Results
The VCS division had revenue of $720 million, up $6 million from
$714 million in Q1 2013. North American aftermarket sales
improved 4 percent as compared to Q1 2013, driven by stronger sales
in the latter half of the quarter which were partially offset by
lower North American OE sales, resulting from the planned exit of a
customer supply contract. European aftermarket sales declined
by 3 percent on a constant dollar basis resulting from lower
volumes. This decline was offset by stronger OE sales in the
region, which were up 4 percent over the same comparison
period. Sales in Rest of World were relatively flat.
VCS recorded operational EBITDA of
$50 million or 7 percent of sales in Q1 2014, compared to $51
million or 7.1 percent of sales in Q1 2013.
"Our primary focus is to provide our customers with the highest
quality products and excellent service at a competitive price,"
said Daniel Ninivaggi, Federal-Mogul Co-CEO and CEO, Vehicle
Components Solutions division. "During the first quarter, we
continued to make progress strengthening our product portfolio,
enhancing our service levels and improving our cost structure."
Debt
Refinancing
On April 15, 2014, Federal-Mogul Holdings Corporation successfully
secured $2.6 billion to refinance maturing debt. The new
financing includes a term loan of $700 million due April 2018 and a
term loan of $1.9 billion due April 2021, strengthening the
liquidity and financial profile of the company.
Analyst
Call
Federal-Mogul will conduct a conference call and audio webcast on
April 23 at 10:00 a.m., EDT. To facilitate rapid connection the
morning of the call, please click here to pre-register.
To participate in the call, dial the following numbers:
Domestic calls:
888.680.0890
International calls:
617.213.4857
Passcode I.D.:
53711997
An audio replay of the call will
be available two hours following the call and will be accessible
until May 23 at:
Domestic calls:
888.286.8010
International calls:
617.801.6888
Passcode I.D.:
24674575
Further information is available
at www.federalmogul.com/investors.
Definitions
(1) Operating Income is defined as income
before interest, taxes, restructuring and impairment charges.
Note: Presented on a continuing operations basis.
(2) Management believes that Operational EBITDA
provides supplemental information for management and investors to
evaluate the operating performance of its business. Management
uses, and believes that investors benefit from referring to
Operational EBITDA in assessing the Company's operating results, as
well as in planning, forecasting and analyzing future periods as
this financial measure approximates the cash flow associated with
the operational earnings of the Company. Additionally, Operational
EBITDA presents measures of corporate performance exclusive of the
Company's capital structure and the method by which assets were
acquired and financed. Operational EBITDA is defined as earnings
from continuing operations before interest, income taxes,
depreciation and amortization, and certain items such as
restructuring and impairment charges, Chapter 11 and U.K.
Administration related reorganization expenses, gains or losses on
the sales of businesses, the non-service cost components of the
U.S. based funded pension plan, OPEB curtailment gains or losses
and the income statement impacts associated with stock appreciation
rights.
(3) Free Cash Flow is defined as net cash
provided from (used by) operating activities less capital
investment for plant, property and equipment.
Forward-Looking Statements
Statements contained in this press release, which are not
historical fact, constitute "Forward-Looking Statements." Actual
results may differ materially due to numerous important factors
that are described in Federal-Mogul's most recent report to the SEC
on Form 10-K, which may be revised or supplemented in subsequent
reports to the SEC on Forms 10-Q and 8-K. Such factors include,
among others, fluctuations in domestic or foreign vehicle
production, fluctuations in the demand for vehicles containing our
products, the Company's ability to generate cost savings or
manufacturing efficiencies to offset or exceed contractually or
competitively required price reductions or price reductions to
obtain new business, conditions in the automotive industry, the
success of the company's segmentation and corresponding effects and
general global and regional economic conditions. Federal-Mogul does
not intend or assume any obligation to update any forward-looking
statements.
About
Federal-Mogul
Federal-Mogul Holdings Corporation
(NASDAQ: FDML) is a leading global supplier of products and
services to the world's manufacturers and servicers of vehicles and
equipment in the automotive, light, medium and heavy-duty
commercial, marine, rail, aerospace, power generation and
industrial markets. The company's products and services enable
improved fuel economy, reduced emissions and enhanced vehicle
safety.
The Corporation operates two
independent business divisions, each with a chief executive officer
reporting to Federal-Mogul's Board of Directors. Federal-Mogul's
Powertrain division designs and manufactures original equipment
powertrain components and systems protection products for
automotive, heavy-duty, industrial and transport applications.
Federal-Mogul's Vehicle Components division sells and distributes a
broad portfolio of products through more than 20 of the world's
most recognized brands in the global vehicle aftermarket, while
also serving original equipment vehicle manufacturers with products
including braking, chassis, wipers and other vehicle
components. The company's aftermarket brands include
ANCO® wiper blades;
Champion® spark plugs,
wipers and filters; AE®,
Fel-Pro®, FP
Diesel®
Goetze®,
Glyco®,
Nüral®,
Payen® and Sealed
Power® engine
products; MOOG® steering and
suspension parts; and Ferodo® and
Wagner® brake
products.
Federal-Mogul was founded in
Detroit in 1899. The company employs 44,300 people in 33 countries,
and its worldwide headquarters is in Southfield, Michigan, United
States. For more information, please visit
www.federalmogul.com.
CONTACT:
Paula
Silver
(248)
354-3045
paula.silver@federalmogul.com
Q12014_FederalMogulFinancialStatements
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Federal-Mogul Corporation via Globenewswire
HUG#1778862
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