TROY, Mich. -- ArvinMeritor has reported financial results for its second fiscal quarter ended March 31.

The company has reported sales of $1.2 billion, up approximately $245 million or 25 percent, from the same period last year.

Net income from continuing operations was $16 million or 20 cents per diluted share, compared to a net loss from continuing operations of $48 million or 66 cents per diluted share, in the same period last year.

Cash flow from operations was $65 million in the second quarter of fiscal year 2010. Free cash flow (cash flow from operations less capital expenditures) of $45 million in the second quarter of fiscal year 2010, compared to free cash outflow of $138 million in the same period last year.

"We are pleased to report favorable earnings this quarter, primarily due to ongoing strength in emerging markets and slightly improved commercial vehicle volumes in North America and Europe," said Chip McClure, chairman, CEO and president. "I am also proud of the hard work we've done to convert our earnings to cash which resulted in our fourth consecutive quarter of positive free cash flow."

For the third quarter of 2010, the company said it expects revenue to be flat and anticipates that adjusted income from continuing operations will be lower due to taxes. ArvinMeritor expects free cash flow before factoring and restructuring to be approximately breakeven.

"We anticipate markets in Europe, South America and Asia Pacific to continue to strengthen, while the North American market may soften in the short-term as a result of the emissions changeover and a lower demand for military products," said McClure. "We will stay focused on achieving our priorities for 2010 that include a continued focus on cost management, divestiture of the light vehicle business, successful execution during the rebound in global markets, product innovation, profitable growth and balance sheet management."