Federal-Mogul Holdings, an automotive parts company, is getting stomped today. The stock is down 8% after reporting an $US18 million loss in the third quarter.
This is bad news for Carl Icahn, who has been the non-executive chairman of Federal-Mogul’s board since 2008 and owns 80% of the company. This drop in the stock price cost him almost $US150 million.
In its earnings release, Federal-Mogul said that the losses were attributable to “restructuring charges of $US25 million as well as $US12 million related to recent acquisitions, preparing for the spin-off of the Motorparts division and headquarters relocation costs.”
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