By Kari Williamson
The company says: “Federal-Mogul's 2011 annual goodwill analysis indicated a decline in the fair value of selected product lines that have been impacted by factors in the US aftermarket. The company believes, however, that increases in its other reporting units such as Powertrain would largely offset the decline; but United States Generally Accepted Accounting Principles (GAAP) do not permit the recognition of gains in the value of one reporting unit to offset impairment charges in another reporting unit.”
Net sales for the year, increased 11%, however, to US$6.2 billion of which original equipment sales contributed US$4.6bn – up 18% on 2010.
Jose Maria Alapont, President and CEO of Federal-Mogul, comments on the results: “Federal-Mogul achieved an 18% global OE revenue growth rate in 2011, exceeding the global market growth rate of 5%, with stable global aftermarket sales, including strong growth in Europe, up 6%, China, up 18% and India, up 12%.
"The company's OE sales growth outpaced the underlying rate in all markets. Federal-Mogul in 2011 achieved record OE sales while simultaneously managing more than 100 new customer programme launches with new Federal-Mogul technologies.”
He adds: "Customers continue to recognise our leading technology and innovation by involving Federal-Mogul early in new powertrain and vehicle development programmes, leading to substantial conquest OE business awards that also become global aftermarket business opportunities. We believe the significant capital investment in our operations to support new global customer programs is a strong base for our future growth."
Federal-Mogul supplies powertrain and safety technologies, serving original equipment manufacturers of automotive, light, medium and heavy-duty commercial, off-road, agricultural, marine, rail, and industrial vehicles, as well as the worldwide aftermarket