Mr. Alapont?

Jose Maria Alapont

Thank you, David. Good morning, everyone. Federal-Mogul's performance in the fourth quarter and for 2011 was strong as we drove increased profitability on record revenue levels. Sales continued strong on the fourth quarter due to the demand for our leading technology and innovation as the automakers maintained high global production. Our total sales in the quarter were up 5% with OE sales up 8% in constant dollar basis.

For the full year, total sales were up 11% at record levels. OE sales were as well at record level of $4.6 billion, up 18% versus a global market growth rate of 5%. We performed significantly above market growth rates in all regions and our growth in emerging markets during 2011 has further diversified our revenue base, with sales in China up 24% and in India 22%.

Sales outside the US and in Europe now account for 90% of the revenue. The company also experienced a strong aftermarket growth with the BRIC up 10%, China 18% up, India 12%. And Europe had a good growth of 6% with North America gaining momentum as a result of the several strategies to be discussed later on.

Full year operating margin and EBITDA remained strong on the year and we experienced significant increase in demand in our global operations. Operating margin improved by $76 million or 24% to 5.8% of sales and EBITDA increased to $702 million or 10.2% of sales. Our performance demonstrates the company's ability to generate greater revenue and profitability through higher operating and SG&A efficiency while also offsetting costs associated with higher volumes and material price increases.

During 2011, we introduced products in more than 100 new customer programs with more than 20 of those programs in China and India. We expect this strong pace to continue for the coming years due to increased global customer demand for our leading technology and innovation to meet (inaudible) requirements combined with (other) industry expansion.

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