SOUTHFIELD, Mich. - Federal-Mogul Corporation reported its net sales for 2007 increased by about half a billion dollars compared to 2006, with about half of the increase credited to increased global demand.

Federal-Mogul reported net sales of $6,914 million for the year ending Dec. 31, 2007, and this coming from a year where the company emerged from reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Net sales increased by $588 million when compared to the same period of 2006, of which $310 million is due to increased global demand and new program launches with both OEM and aftermarket customers, with the balance due mainly to favorable foreign currency movements.

The report was a part of the financial results summary for the 12-month period.

Gross margin for the same time period increased by $80 million, compared to the same period of 2006.

The combination of productivity, increased volumes and favorable exchange improved gross margins by $135 million. These favorable impacts were partially offset by $75 million of raw material commodity price inflation and $56 million in reduced customer pricing. Gross margin was further improved through reduced pension expense of $76 million associated with the settlement of the U.K. pension plans.

Selling, general and administrative ("SG&A") expenses for the year decreased by $20 million.

Capital expenditures were $310 million for the year, an increase of $72 million from 2006.

Federal-Mogul is a leading global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket.

Federal-Mogul was founded in Detroit in 1899. The company is headquartered in Southfield, Mich., and employs 50,000 people in 35 countries.

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