Federal-Mogul Announces $660 Million in Net New Business
28 April 1999
Federal-Mogul Announces $660 Million in Net New Business
SOUTHFIELD, Mich., April 28 -- Federal-Mogul Corporation
today announced $660 million in net new business awards covering
the 1999 to 2003 time frame for both original equipment and aftermarket
customers. On an annual basis, net new business gains equate to $150 million
in 1999, $160 million in 2000, $150 million in 2001, $110 million in 2002 and
$90 million in 2003.
"The value we provide with systems and modules and expanded global reach
is resulting in the growth we are reporting today," said Dick Snell, chairman
and chief executive officer.
The $660 million net new sales by Federal-Mogul's operating groups include
Powertrain Systems with $290 million, General Products with $230 million and
Sealing Systems with $140 million. The detail of net new business by
operating segment in millions is:
Powertrain Systems General Products Sealing Systems Total
1999 $72 $55 $23 $150
2000 $60 $73 $27 $160
2001 $69 $57 $24 $150
2002 $63 $36 $11 $110
2003 $26 $9 $55 $90
Total $290 $230 $140 $660
Net new business represents the incremental changes in the company's sales
that result from customer programs and volumes gained or lost. This includes:
gains from new platforms, product wins and significant volume increases; and
losses from program roll offs, significant volume decreases and lost business.
Assumptions, positive or negative, for market conditions, estimates of pricing
changes, or other external items such as foreign currency fluctuations are not
included. Federal-Mogul utilizes the planned production forecasts from the
automobile manufacturers for net new business numbers and will make
adjustments as these forecasts change on a quarterly basis.
Headquartered in Southfield, Michigan, Federal-Mogul is an automotive
parts manufacturer providing innovative solutions and systems to global
customers in the automotive, light truck, heavy-duty, railroad, farm and
industrial markets. The company was founded in 1899. Visit the company's web
site at http://www.federal-mogul.com for more information. Federal-Mogul's
press releases are available by fax through Company News On-Call, call
800-758-5804, ext. 306225.
Information in this press release contains forward-looking statements
under the private Securities Litigation Reform Act of 1995. Actual results,
events and performance could differ materially from those contemplated by
these statements such as the timing of new business development, conditions in
the automotive components industry and other factors discussed in the
company's 1998 Annual Report on Form 10-K and other filings with the
Securities and Exchange Commission.