Federal-Mogul Corp. has developed an innovative aluminum piston design that can reliably withstand the mechanical and thermal loads produced by heavily boosted engines, thereby enhancing diesel engine performance. Called DuraBowl®, Federal-Mogul's design strengthens the crown of a piston by locally re-melting the alloy around the bowl, significantly improving the fatigue strength of the aluminum where it is most needed. The result is an extension of engine life to between four and seven times that achieved with a conventional cast piston. The combustion in a diesel engine takes place in a hollow bowl in the top of the piston, where temperatures can reach over 400 degrees Celsius (750 degrees Fahrenheit) and pressures over 200 Bar (200 x atmospheric pressure). Under these increasingly difficult combustion conditions, the rim of the piston bowl has an increased failure factor. Following extensive analysis, Federal-Mogul's engineers have identified that both thermal and mechanical failures of the piston bowl can be traced to the presence of free primary silicon particles distributed throughout the aluminum matrix. Aluminum expands eight times as much as silicon, therefore stresses are set up within the piston every time the temperature fluctuates. Furthermore, repeated mechanical loads, each time the cylinder fires, could result in fatigue failure from the corners of the silicon particles. Silicon is a necessary constituent of the aluminum alloy, offering favorable properties such as low expansion and good castability, so it cannot be eliminated.

Federal-Mogul Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net sales of $1,380.0 million, income before income taxes of $9.5 million, net income attributable to the company of $10.4 million or $0.10 per diluted share against net sales of $1,692.0 million, income before income taxes of $25.5 million, net income attributable to the company of $3.6 million or $0.04 per diluted share for the same period last year. Operational EBITDA was $133.7 million as compared to $178.8 million for the same period prior year. Net cash provided from operating activities was $144.8 million against $117.7 million for the same period prior year. For the nine months, the company reported net sales of $3,922.0 million, loss before income taxes of $90.1 million, net loss attributable to the company of $87.6 million or $0.89 per diluted share against net sales of $5,546.4 million, income before income taxes of $138.6 million, net income attributable to the company of $61.7 million or $0.62 per diluted share for the same period last year. Operational EBITDA was $332.8 million as compared to $643.8 million for the same period prior year. Net cash provided from operating activities was $48.2 million against $375.3 million for the same period prior year. The company reported expenditures for property, plant and equipment of $145.7 million compared to the expenditures for property, plant and equipment of $240.2 million for the same period a year ago.

Federal-Mogul Corp. reported capital spending for the third quarter ended September 30, 2009. For the quarter, the company reported capital spending decreased from $92 million in third quarter of 2008 to $35 million in the current quarter.