Exhibit 99
FEDERAL-MOGUL CORPORATION
STATEMENTS OF OPERATIONS
(Millions of Dollars, Except Per Share Data) (Unaudited)
| Three Months Ended March 31 | ||||||||
| 2004 | 2003 | |||||||
Net sales | $ | 1,553.0 | $ | 1,367.2 | ||||
Cost of products sold | 1,256.3 | 1,094.6 | ||||||
Gross margin | 296.7 | 272.6 | ||||||
Selling, general and administrative expenses | 243.0 | 224.7 | ||||||
Interest expense, net | 25.6 | 29.5 | ||||||
Chapter 11 and Administration related reorganization expenses | 26.0 | 32.8 | ||||||
Equity in earnings of unconsolidated subsidiaries | (9.5 | ) | (5.8 | ) | ||||
Other expense, net | 12.1 | 9.7 | ||||||
Loss from continuing operations before income taxes | (0.5 | ) | (18.3 | ) | ||||
Income tax expense | 19.9 | 18.8 | ||||||
Loss from continuing operations | (20.4 | ) | (37.1 | ) | ||||
Income from discontinued operations, net of income taxes | — | 2.9 | ||||||
Net loss | $ | (20.4 | ) | $ | (34.2 | ) | ||
Basic and diluted per share data: | ||||||||
Loss per share from continuing operations | $ | (0.23 | ) | $ | (0.42 | ) | ||
Income per share from discontinued operations | — | 0.03 | ||||||
Loss per share | $ | (0.23 | ) | $ | (0.39 | ) | ||
Weighted average shares outstanding | 87.1 | 87.1 | ||||||
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FEDERAL-MOGUL CORPORATION
BALANCE SHEETS
(Millions of Dollars)
| (Unaudited) March 31 2004 | December 31 2003 | |||||||
Current assets: | ||||||||
Cash and equivalents | $ | 521.9 | $ | 472.4 | ||||
Accounts receivable, net | 1,050.4 | 976.5 | ||||||
Inventories, net | 822.9 | 834.4 | ||||||
Prepaid expenses and other current assets | 262.5 | 257.5 | ||||||
Total current assets | 2,657.7 | 2,540.8 | ||||||
Property, plant and equipment, net | 2,354.8 | 2,404.8 | ||||||
Goodwill and indefinite-lived intangible assets | 1,517.7 | 1,517.1 | ||||||
Definite-lived intangible assets, net | 345.2 | 348.0 | ||||||
Asbestos-related insurance recoverable | 820.8 | 806.1 | ||||||
Prepaid pension costs | 288.3 | 309.2 | ||||||
Other noncurrent assets | 190.2 | 190.7 | ||||||
| $ | 8,174.7 | $ | 8,116.7 | |||||
Current liabilities: | ||||||||
Short-term debt, including current portion of long-term debt | $ | 320.4 | $ | 14.8 | ||||
Accounts payable | 388.6 | 332.3 | ||||||
Accrued liabilities | 527.9 | 513.3 | ||||||
Other current liabilities | 160.4 | 158.4 | ||||||
Total current liabilities | 1,397.3 | 1,018.8 | ||||||
Liabilities subject to compromise | 6,095.5 | 6,087.8 | ||||||
Long-term debt | 11.4 | 331.2 | ||||||
Postemployment benefits | 1,731.4 | 1,716.6 | ||||||
Deferred income taxes | 70.3 | 70.4 | ||||||
Other accrued liabilities | 214.8 | 214.4 | ||||||
Minority interest in consolidated subsidiaries | 55.9 | 54.4 | ||||||
Shareholders’ deficit: | ||||||||
Series C ESOP preferred stock | 28.0 | 28.0 | ||||||
Common stock | 435.6 | 435.6 | ||||||
Additional paid-in capital | 2,061.0 | 2,060.5 | ||||||
Accumulated deficit | (2,953.8 | ) | (2,933.4 | ) | ||||
Accumulated other comprehensive loss | (972.7 | ) | (967.6 | ) | ||||
Total shareholders’ deficit | (1,401.9 | ) | (1,376.9) | |||||
| $ | 8,174.7 | $ | 8,116.7 | |||||
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FEDERAL-MOGUL CORPORATION
STATEMENTS OF CASH FLOWS
(Millions of Dollars)
(Unaudited)
| Three Months Ended March 31 | ||||||||
| 2004 | 2003 | |||||||
Cash provided from operating activities | ||||||||
Net loss | $ | (20.4 | ) | $ | (34.2 | ) | ||
Adjustments to reconcile net loss to net cash provided from operating activities: | ||||||||
Depreciation and amortization | 84.7 | 73.8 | ||||||
Change in postemployment benefits, including pensions | 30.8 | 29.4 | ||||||
Deferred taxes | 0.1 | 13.0 | ||||||
Changes in operating assets and liabilities: | ||||||||
Increase in accounts receivable | (80.4 | ) | (46.6 | ) | ||||
Increase in inventories, net of involuntary conversion | (38.2 | ) | (2.0 | ) | ||||
Increase in accounts payable | 58.7 | 20.3 | ||||||
Change in other assets and other liabilities | 49.0 | (26.9 | ) | |||||
Insurance proceeds | 35.0 | — | ||||||
Net cash provided from operating activities | 119.3 | 26.8 | ||||||
Cash used by investing activities | ||||||||
Expenditures for property, plant and equipment and other long-term assets | (73.4 | ) | (65.1 | ) | ||||
Proceeds from the sale of property, plant and equipment | 11.0 | 6.5 | ||||||
Net cash used by investing activities | (62.4 | ) | (58.6 | ) | ||||
Cash (used by) provided from financing activities | ||||||||
Borrowings on DIP credit facility | — | 75.0 | ||||||
Principal payments on DIP credit facility | (10.0 | ) | (10.2 | ) | ||||
Decrease in short-term debt | (4.4 | ) | (16.7 | ) | ||||
Increase / (decrease) in other long-term debt | 0.2 | (2.5 | ) | |||||
Net cash (used by) provided from financing activities | (14.2 | ) | 45.6 | |||||
Effect of foreign currency exchange rate fluctuations on cash | 6.8 | 1.5 | ||||||
Increase in cash and equivalents | 49.5 | 15.3 | ||||||
Cash and equivalents at beginning of period | 472.4 | 395.1 | ||||||
Cash and equivalents at end of period | $ | 521.9 | $ | 410.4 | ||||
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