With only three weeks on the job as chief executive, Frank
Macher had the unenviable task of confirming for auto industry
analysts and journalists that Federal-Mogul Corp., already a
company in trouble, had a fourth quarter that was even worse
than expected.  The Southfield, MI, supplier lost $337 million
in the fourth quarter, or 99 cents per share. Initially, the
company projected losses of $0.25 per share, raising it to $0.50
in early January. Factor in restructuring charges and asbestos
liability adjustments, and fourth-quarter losses reach a
staggering $4.80 per share, compared to net earnings of $0.79 in
like-1999.  Sales were down 14% to $1.3 billion from fourth-
quarter 1999 and off 7% for the year to $6 billion, as the
company lost $281 million for entire-1999.  The outlook doesn't
improve much for 2001. It will be a very difficult year for us
with volume reductions, Mr. Macher says. We will work
aggressively on the cost side to improve cash flow, and we've
already begun to work down our asbestos liab