Federal-Mogul to Cut Jobs, Close Warehouses

Automotive parts supplier Federal-Mogul Corp. said that it will cut 1,500 jobs, close 22 North American warehouses and consolidate 18 manufacturing and distribution centers overseas as it restructures to improve profitability. The company said the program will result in special charges of $100 million over two years, an additional $100 million in incremental expenses and capital expenditures that will be expensed or capitalized as incurred, and might also mean a noncash asset write-down of about $35 million to adjust certain assets to their fair value. The restructuring will begin this year and will be completed by the end of 2002, it said. The job cuts will amount to about 3% of the company’s current work force of 50,400. Federal-Mogul, based in Southfield, Mich., said the restructuring would include closing its manufacturing facilities in Mooresville, Ind., and Milan, Mich. The consolidation of 18 manufacturing and distribution centers overseas will occur in Europe and Asia. Shares fell $1.25 to close at $13.94 on the New York Stock Exchange.

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