Federal-Mogul

(FMO) - Get Report

, the auto parts maker, said Wednesday that it would eliminate 1,500 jobs as part of a major restructuring meant to improve profitability.

Federal-Mogul's shares declined 1 3/16, or 8%, to 14 in midday trading.

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"We are working to reduce our invested capital base to improve economic value," said Dick Snell, chairman and chief executive of the Southfield, Mich.-based company, in a statement. "I am pleased with the aggressive actions identified by our team."

The company said it would close a score of warehouses and manufacturing plants as part of the restructuring, which the company said should be completed by 2002. The job cuts represent about 3% of the company's workforce.

Under the plan, Federal-Mogul expects to incur charges and expenses of roughly $200 million over the next two years.

Federal-Mogul also said it is revising its fourth-quarter earnings reported in early February to include a 4-cent-a-share expense after the company decided not to sell its lighting, wiper blade and fuel businesses.

The company said its fourth-quarter earnings from operations are now 86 cents a share, compared with 78 cents in the year-earlier quarter.