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The Powertrain Segment of Federal-Mogul Corp. (FDML - Snapshot Report) is increasing the production of CrushShield systems in view of its rising demand. The technology, which was introduced in 2011, provides protection to the high-voltage cables in the hybrid and electric vehicles in case there is a crash.

The CrushShield safeguards occupants by preventing the wiring of critical systems from being cut in case a crash occurs. The system keeps the high voltage electrical system in hybrid and electric vehicles separated from the rest of the vehicle, thus abiding by the Federal Motor Vehicle Safety Standards (FMVSS) 305 compliance. The customers also use CrushShield in the power, safety and communication systems of other vehicles to provide better protection.

With technological improvement and modernization, the automakers use electric or electro-hydraulic systems in all types of vehicles. The CrushShield protects the electric power systems, including electrical oil pump wire harnesses, power steering motor cables and emergency communications system wiring.

The CrushShield is a cost effective protection system for the automakers. CrushShield makes the wiring harness assembly lighter and easier to install compared with other protection systems.

Federal-Mogul is a leading global supplier of powertrain, chassis and safety technologies. The company’s leading technology and innovation, lean manufacturing expertise, as well as marketing and distribution deliver world-class products, brands and services with excellent quality at a competitive cost. Currently, it carries a Zacks Rank #3 (Hold).

Federal-Mogul posted a 45.7% fall in earnings per share to 19 cents in the first quarter of 2013 from 35 cents in the corresponding quarter last year. However, earnings per share comfortably outpaced the Zacks Consensus Estimate of a loss of 29 cents.

Revenues also decreased 2.4% to $1.69 billion in the reported quarter, missing the Zacks Consensus Estimate of $1.75 billion. The year-over-decline was due to lower European light vehicle shipment and reduced global commercial vehicle production.

Some other stocks that are performing well in the industry where Federal-Mogul operates include Tower International, Inc. (TOWR - Snapshot Report), Visteon Corp. (VC - Snapshot Report) and STRATTEC Security Corp. (STRT - Snapshot Report). All the stocks carry a Zacks Rank #1 (Strong Buy).


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