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The eBearing News
May 26, 2000
Federal-Mogul Warns on Problems,
Earnings Shortfalls for 2000
copyright © 2000 eBearing Inc.
Federal-Mogul Corp. (Southfield, Michigan) warned Wall Street that it will miss
second quarter 2000 earnings estimates and lowered its outlook for the remainder of 2000.
Federal-Mogul said it expects second quarter EPS to be $0.65 and not the $1.12 analysts
had been projecting. F-M indicated EPS for 2000 might only hit $3.00, not
the $3.40 analysts had projected.
The company said aftermarket sales will decline by at least 8% through the remainder
of 2000. Any decline in aftermarket sales is doubly significant for the company, as
aftermarket parts represent Federal-Mogul's highest margin business, contributing roughly
twice the profit margins of its sales to original equipment manufacturers.
F-M also revealed it had lost a number of customers and run up significant
expenses, shipment delays and other related to a botched warehouse automation system implementation.
The company did report it is attempting to restore some spending on Marketing and
R&D; both had been slashed in efforts to meet earnings estimates.
Fedral-Mogul stock fell 66% in 1999, and has been off as much as another 20% in 2000,
prompting a buy-in by corporate raider Carl Icahn. In addition, a number of
class-action lawsuits have been filed by shareholder rights attorneys.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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