Total sales were US$1.7 billion, down 5% versus Q2 2011, but up 1% versus Q2 2011. Operational EBITDA was US$159 million or 9.3% of sales, down from Q2 2011. Federal-Mogul’s global original equipment (OE) sales were US$1.1 billion, up 3% versus Q2 2011 driven by a 9% OE sales increase in the United States and 7% OE sales increase in the BRIC markets, off-setting a 4% revenue decline in Europe. Light vehicle production in Europe during the quarter decreased 9% versus Q2 2011.
“We are putting in place the foundation for stronger performance at Federal-Mogul,” said Rainer Jueckstock, Federal-Mogul OE division CEO. "The company is investing in its core technology portfolio of powertrain products, vehicle safety products and leading aftermarket brands. In addition, we announced a comprehensive restructuring of our global brake friction and wipers manufacturing footprint to improve cost competitiveness and raise capacity utilization in low cost locations."
Michael Broderick, Federal-Mogul aftermarket division CEO, said the company is taking the necessary actions to restructure its business for improved profitability and to meet customer expectations for leading technology at competitive costs. "This will be especially beneficial when supplying products to the aftermarket, where price competition is a more significant factor in purchase decisions,” he explained.