Preliminary expense estimates of $60-$80 million through end of 2009
SOUTHFIELD, Mich., Sept. 17 /PRNewswire-FirstCall/ -- Federal-Mogul
Corporation (Nasdaq: FDML) today announced a restructuring plan designed to
improve operating performance and respond to increasingly challenging
conditions in the global automotive market. The plan, when combined with
other workforce adjustments, is expected to reduce the company's global
workforce by approximately 4,000 positions or eight percent. The planned
actions are expected to occur as a result of several initiatives designed
to streamline business processes, consolidate or close selected locations,
and reduce general and administrative staffing. The company is not
disclosing the specific sites at this time, pending further evaluation and
consultations with appropriate parties. The restructuring initiatives will
begin during September 2008 and continue into 2009 with several phases of
implementation. Preliminary cost estimates of the restructuring program are
in the range of $60-$80 million through the end of 2009.
"We are taking actions in response to a downturn in regional markets
and global industry outlook. We recognize this is a difficult decision, yet
these measures are required to prepare the company for the increasingly
challenging automotive environment. The efficiencies gained as a result of
these initiatives will strengthen Federal-Mogul's competitive position and
help assure the company's future as we continue to implement our
sustainable global profitable growth strategy," said Jose Maria Alapont,
Federal-Mogul President and CEO.
About Federal-Mogul
Federal-Mogul Corporation is a leading global supplier of powertrain
and safety technologies, serving the world's foremost original equipment
manufacturers of automotive, light commercial, heavy-duty and off-highway
vehicles, as well as in power generation, aerospace, marine, rail,
industrial, and the worldwide aftermarket. The company's leading technology
and innovation, lean manufacturing expertise, as well as marketing and
distribution deliver world-class products, brands and services with quality
excellence at a competitive cost. Federal-Mogul is focused on its
sustainable global profitable growth strategy, creating value and
satisfaction for its customers, shareholders and employees. Federal-Mogul
was founded in Detroit in 1899. The company is headquartered in Southfield,
Michigan, and employs approximately 50,000 people in 35 countries. Visit
the company's web site at http://www.federalmogul.com.
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, the cost and timing of
implementing restructuring actions, Federal-Mogul'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,
and certain global and regional economic conditions. Federal-Mogul does not
intend or assume any obligation to update any forward-looking statement to
reflect events or circumstances after the date of this press release.
CONTACT: Paula Silver - 248-354-4530
Jennifer Rass - 248-354-7502
SOURCE Federal-Mogul Corporation
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Related links:
http://www.federal-mogul.com
http://www.prnewswire.com/comp/306225.html /
CONTACT:
Paula Silver, +1-248-354-4530, Jennifer Rass,
+1-248-354-7502, both of Federal-Mogul Corporation
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