Federal-Mogul to swallow tough pill

Still coping with indigestion from a late-1990s acquisition drive, Chairman and Chief Executive Richard Snell issues a tough prescription for ailing Federal-Mogul Corp.: Cut 1,500 jobs (out of 50,400 worldwide) and close, consolidate or rationalize at least 62 facilities worldwide. The price tag for the drastic restructuring, which includes shuttering 22 North American aftermarket branch warehouses, the Mooresville, IN, heavy wall bearing plant and a seal plant in Milan, MI, plus the consolidation of 18 manufacturing and distribution operations in Europe and Asia, is expected to total $200 million over the next few years. Despite record 1999 financial results, it has been clear for some time that all was not right at Federal-Mogul. Several executives have either bailed out or been dismissed in recent months, including former President and Chief Operating Officer Gordon Ulsh, who left following reports of a $160 million aftermarket sales shortfall for the third quarter, and Chief Financial Officer Thomas Ryan, a close personal friend of Mr. Snell.