TROY, Mich. -- Meritor Inc. has reported financial results for its second fiscal quarter ended March 31, 2011.

Sales were $1.2 billion, up $324 million or 37 percent, from the same period last year. Net income on a GAAP basis was $17 million compared to $13 million in the prior year's second quarter. Adjusted EBITDA was $81 million, up $20 million or 33 percent, from the same period last year.

Cash flow from operations was $5 million in the second quarter of fiscal year 2011, compared to $65 million in the same period last year. Free cash flow was negative $18 million in the second quarter of fiscal year 2011, compared to positive $45 million in the same period last year.

During the quarter, Meritor added new participating banks in the company's revolving credit facility, resulting in additional $45 million to a revolver that expires in January 2014 ($15 million of which was added in the third quarter). The company also completed its divestiture of substantially all remaining light vehicle businesses and announced the planned closure of its European trailer business.

"Continued improvement of commercial truck sales in all regions drove a 33-percent increase in adjusted EBITDA year-over-year," said Chairman, CEO and President Chip McClure. "While our team worked hard this quarter to capitalize on significantly higher volumes, rising steel costs, as well as launch costs related to the Caiman defense program, impacted our ability to fully benefit from increased revenue this quarter."

On March 30, the company announced it had officially changed its name from ArvinMeritor to Meritor Inc. Also on that date, the company began trading stock under the new ticker symbol MTOR.

"With the company now focused on commercial truck, industrial and aftermarket and trailer markets, we are proud to reassume the Meritor name as we concentrate on engineering and manufacturing products that offer our customers higher performance, energy efficiency and reliability," said McClure.

For the third quarter of 2011, the company anticipates revenue in the range of $1,300 million to $1,375 million.

For fiscal year 2011, Meritor expects results for continuing operations in the following ranges for capital expenditures, interest expense, cash interest, income tax expense and cash income taxes:
• Capital expenditures in the range of $90 million to $105 million, up from $75 million to $90 million.
• Interest expense in the range of $100 million to $110 million.
• Cash interest in the range of $85 million to $95 million.
• Income tax expense in the range of $70 million to $90 million.
• Cash income taxes in the range of $50 million to $70 million.

"We believe we have solid actions in place to achieve our long-term margin target," said McClure. "We remain confident that a sharp focus on operational execution, management of premium costs, accelerated recovery of steel increases and normalization of defense volumes, should put us back on our glide path toward a 10-percent EBITDA margin by the end of 2012."