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By Owen Stampflee SOUTHFIELD, Mich. (CBS.MW) -- Shares of Federal-Mogul fell more than 20 percent Friday after the auto parts manufacturer warned that it won't meet Wall Street consensus estimates. Federal-Mogul declined 2 7/16 to close at 9 7/16 on volume of 4.1 million shares. Late Thursday, Federal-Mogul said it expects earnings per share of 65 cents for the second quarter and $3 for the full year. Analysts polled by First Call were expecting $1.12 a share for the second quarter and $3.40 for the full year. The company said the shortfall in earnings is due to a weak North American aftermarket, declining European currency versus the dollar and original equipment demand versus capacity constraints. Federal-Mogul said it has been cutting back on expenses associated with investment in technology and marketing, but that it can no longer afford to do so. "We cannot sacrifice investment in these areas," the company said. You may think this has nothing to do with drag racing but it does, Federal-Mogul Corp. is the major sponsor of the NHRA Sportsman Ranks which is also known as The Federal-Mogul Drag Racing Series(FMDRS). What will happen to the FMDRS if Federal Mogul is forced to pull it's sponsorship? Who else in the Specialty Vehicle Aftermarket Association(SEMA) will able to undertake the million dollar fund? If you have any ideas please post them on our Message Board. | ||
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