Federal Signal calls on ex-UAL chief

Federal Signal Corp., a maker of fire trucks that has posted losses in two of the past three years, said Chief Executive Officer Robert Welding resigned and will be replaced by former United Airlines chief James Goodwin.

Goodwin, 63, will serve as interim president and chief executive officer while a committee looks for a permanent replacement, David Janek, a spokesman for Oak Brook-based Federal Signal said Wednesday.

Welding "elected to retire" as of Jan. 1, Janek said, without providing further details.

Welding, 59, became chief executive officer in December 2003. The company, which also makes street sweepers, reported combined net losses of $6.9 million in 2004 and 2005 because of costs to exit tool and garbage truck body businesses.

Federal Signal, founded in 1901, had a $22.7 million profit last year.

Goodwin has served as a board member for two years and was formerly the chairman and chief executive officer of United Airlines parent UAL Corp.

Federal Signal fell 27 cents to $11.51 in New York Stock Exchange composite trading. The stock has fallen 28 percent this year.

Goodwin headed UAL from 1999 to 2001. His tenure was marked by union tension, layoffs, pay cuts, an unsuccessful $11.5 billion merger attempt with US Airways and a failed business jet start-up called Avolar, initially based in Arlington Heights. A 32-year employee renown for his operational skills, he guided the airline in the wake of the Sept. 11 terrorist attacks, which crashed two United Airlines airplanes and plunged the industry into record losses.