TROY, Mich. – Meritor Inc. has reported financial results for its fourth quarter and full fiscal year ended Sept. 30, 2011.
 
Sales from continuing operations were $1.2 billion, up $276 million or 29 percent, from the same period last year. Net income on a GAAP basis was $31 million compared to $2 million in the prior year's fourth quarter.
 
Income from continuing operations was $38 million compared to $9 million in the same period last year. Adjusted income from continuing operations was $43 million, compared to $14 million in the prior year's fourth quarter. Adjusted EBITDA was $97 million, up $22 million from the same period last year.
 
Cash flow from operations was $60 million in the fourth quarter of fiscal year 2011, compared to $72 million in the same period last year. Free cash flow for the quarter was $23 million, compared to $42 million in the same period last year.
 
"Our fourth-quarter revenue and earnings were in line with our expectations," said Chairman, CEO and President Chip McClure. "Cash conversion of earnings was better than expected due to strong accounts receivables and inventory management. Commercial truck demand globally remained strong and we reported a 29 percent increase in adjusted EBITDA for the entire company year-over-year."
 
For fiscal year 2011, Meritor posted sales of $4.6 billion, up 31 percent from the prior fiscal year. Strengthening truck demand in all regions was the primary driver of the revenue growth, the company said.
 
Net income for fiscal year 2011 was $63 million compared to $12 million in the prior fiscal year. Income from continuing operations for fiscal year 2011 was $65 million, or 67 cents per diluted share, compared to $14 million, or 16 cents per diluted share for 2010. Adjusted income from continuing operations in fiscal year 2011 was $82 million, or 85 cents per diluted share, compared to $18 million, or 21 cents per diluted share, a year ago.
 
Adjusted EBITDA was $347 million, compared to $260 million in fiscal year 2010. Adjusted EBITDA margin was 7.5 percent in fiscal year 2011 compared to 7.4 percent in the prior fiscal year.
 
Cash provided by operating activities for fiscal year 2011 was $41 million, compared to $211 million in fiscal year 2010. Free cash flow for fiscal year 2011 was an outflow of $70 million compared to free cash flow of $122 million in fiscal year 2010. Fiscal year 2011 free cash flow was negative primarily due to higher investments in inventory and machinery and equipment as global commercial vehicle and industrial markets continued to strengthen as well as an increased use of cash by the company's discontinued operations.
 
For fiscal year 2012, the company anticipates the following results for the entire company:

• Capital expenditures in the range of $100 million to $110 million.
• Interest expense in the range of $85 million to $95 million.
• Cash interest in the range of $75 million to $85 million.
• Cash income taxes in the range of $75 million to $95 million.
• Restructuring cash of approximately $20 million.

"We remain focused on our 2012 priorities and key initiatives," said McClure. "We will keep driving for sustainable and profitable growth, collaboration with customers and suppliers, strategic investments, new product introductions and cost management."