Federal-Mogul to Reorganize, Sell Stores

Auto parts maker Federal-Mogul Corp. said it will cut 18% of its work force, or about 2,900 jobs; sell 132 stores in Australia, Chile, Ecuador, Panama, Puerto Rico, South Africa and Venezuela; sell or restructure 30 wholesale operations in 10 countries and close at least three U.S. facilities in order to focus on its most profitable businesses, making and distributing auto parts worldwide. The Southfield, Mich.-based company took pretax charges of about $264 million to pay for the reorganization, resulting in a fourth-quarter loss of $220.2 million, or $6.32 a share. Federal-Mogul also plans consolidation of certain management operations in Europe. The company said it is taking a $204-million pretax charge for the restructuring. It’s also taking a $60-million pretax charge for accounting changes, writing down inventory and other moves. The company may take charges in future years for some restructurings, a spokesman said.