Federal-Mogul Holdings LLC (FDML) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $1 million, or $ 0.01 a share in the quarter, against a net loss of $58 million, or $0.35 a share in the last year period. On an adjusted basis, net profit from continuing operations for the quarter was $16 million, when compared with $37 million in the last year period. Revenue during the quarter went down marginally by 0.56 percent to $1,788 million from $1,798 million in the previous year period. Gross margin for the quarter contracted 14 basis points over the previous year period to 14.88 percent. Operating margin for the quarter period stood at positive 2.63 percent as compared to a negative 2.34 percent for the previous year period.
Operating income for the quarter was $47 million, compared with an operating loss of $42 million in the previous year period.
As previously announced on February 16, 2017, the Board of Directors of Federal-Mogul Holdings LLC announced the appointment of Bradley S. Norton as co-chief executive officer of the company and chief executive officer of its Motorparts division, effective March 8, 2017. Rainer Jueckstock will remain as co-chief executive officer of Federal-Mogul Holdings LLC and chief executive officer of Federal-Mogul Powertrain. Norton, who has more than 25 years of global automotive experience in both original equipment and the aftermarket and currently serves as senior vice president, chassis and service for Federal-Mogul Motorparts, succeeds Daniel A. Ninivaggi, who had served as co-chief executive officer and chief executive officer of Federal-Mogul Motorparts since 2014. Ninivaggi will return to Icahn Enterprises L.P., Federal-Mogul’s parent company, where he will serve as managing director of IEP's automotive segment.
Operating cash flow improves significantly
Federal-Mogul Holdings LLC has generated cash of $546 million from operating activities during the year, up 1,336.84 percent or $508 million, when compared with the last year. The company has spent $400 million cash to meet investing activities during the year as against cash outgo of $787 million in the last year. It has incurred net capital expenditure of $361 million on net basis during the year, down 15.65 percent or $67 million from year ago.
The company has spent $20 million cash to carry out financing activities during the year as against cash inflow of $627 million in the last year period.
Cash and cash equivalents stood at $300 million as on Dec. 31, 2016, up 54.64 percent or $106 million from $194 million on Dec. 31, 2015.
Working capital remains almost stable
Federal-Mogul Holdings LLC has witnessed a decline in the working capital over the last year. It stood at $1,271 million as at Dec. 31, 2016, down 0.55 percent or $7 million from $1,278 million on Dec. 31, 2015. Current ratio was at 1.72 as on Dec. 31, 2016, up from 1.70 on Dec. 31, 2015.
Debt remains almost stable
Federal-Mogul Holdings LLC has recorded a decline in total debt over the last one year. It stood at $3,025 million as on Dec. 31, 2016, down 0.88 percent or $27 million from $3,052 million on Dec. 31, 2015. Total debt was 42.75 percent of total assets as on Dec. 31, 2016, compared with 42.17 percent on Dec. 31, 2015. Debt to equity ratio was at 3.44 as on Dec. 31, 2016, up from 3.38 as on Dec. 31, 2015.
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