Federal-Mogul Second Half 1999 Outlook
14 September 1999
Federal-Mogul Second Half 1999 Outlook
SOUTHFIELD, Mich., Sept. 13 -- Federal-Mogul Corporation
today announced that it expects financial results for the second
half of the year ending December 31, 1999 to fall below consensus estimates.
Based on current projections of third quarter sales at approximately $1.57
billion, earnings per share from operations for the quarter are expected to be
between $1.00 and $1.05 per share. Earnings per share from operations for the
year are expected to be between $4.20 and $4.30. Cash flow from operations
including capital expenditures is estimated to be $200 to $250 million for the
year. The company earned $.66 per share from operations in the third quarter
of 1998 and $2.69 per share for the year.
The projected earnings shortfall against the consensus is primarily
attributable to a weaker global aftermarket to original equipment sales mix
and shortfalls against overall productivity goals including operational start-
up problems with the company's camshaft business.
"We find this disappointing and are taking immediate actions to reduce our
costs on a global basis to reflect lower sales of aftermarket products," said
Dick Snell, chairman and chief executive officer. "We have already taken
appropriate actions with our camshaft business."
Federal-Mogul will hold a conference call at 5 p.m., Eastern Standard
Time, today. The dial-in number is 651-291-5228. A playback of this
conference call will be available after 8 p.m. (EST) today through 5 p.m.
(EST) on Friday, September 17, 1999. The playback is available by dialing
800-475-6701 (domestic) or 320-365-3844 (international), access code 470629.
Federal-Mogul intends to release actual third quarter earnings on October 21,
1999.
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, and 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.
This press release contains forward-looking statements that involve a
number of risks and uncertainties, including Federal-Mogul's expectations and
beliefs regarding its earnings for the quarter ended September 30, 1999 and
year-end. Factors that could cause actual results to differ materially from
those reflected in the forward-looking statements are discussed in the
Company's Annual Report on Form 10-K.