TROY, Mich. – Meritor Inc. has reported financial results for its first fiscal quarter ended Dec. 31, 2011.
 
For the first quarter of fiscal year 2012, Meritor posted sales of $1.159 billion, up 21 percent from the same period last year. The company said this increase in sales was primarily due to stronger truck demand in all regions. As compared to the fourth quarter of fiscal year 2011, sales in the first quarter were down almost 5 percent due to normal seasonality and lower defense revenue.
 
"Our performance this quarter was in line with our expectations, driven primarily by higher commercial truck sales in all regions that helped us to deliver a 22-percent increase in Adjusted EBITDA year-over-year," said Chairman, CEO and President Chip McClure. "In addition, we completed key initiatives, including our European footprint rationalization and commercial truck pricing negotiations, which we expect to drive improving margins in the coming quarters."
 
Loss from continuing operations, on a GAAP basis, was $13 million or 13 cents per diluted share, compared to a loss from continuing operations of $6 million or 7 cents per diluted share in the prior year. Loss from continuing operations includes $24 million of restructuring charges (including $19 million of non-cash charges) primarily associated with the sale of the company's St. Priest, France, facility.
 
Adjusted income from continuing operations in the first quarter of fiscal year 2012 was $11 million, or 12 cents per diluted share, compared to an adjusted loss from continuing operations of $3 million, or 4 cents per diluted share, a year ago.
 
For fiscal year 2012, the company reaffirms its guidance for the following results from continuing operations:
 
* Revenue to be approximately $4.8 billion.
* Adjusted EBITDA margin in the range of 8.2 percent to 8.6 percent.
* Adjusted income from continuing operations in the range of $105 million to $135 million.
* Adjusted earnings per share in the range of $1.08 to $1.39.
* Free cash flow before restructuring payments in the range of $25 million to $75 million.
* Effective tax rate of approximately 40 percent.
 
For fiscal year 2012, the company continues to plan the following for its continuing operations:
 
* 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 are executing on our 2012 priorities and key initiatives," said McClure. "We will continue driving toward sustainable and profitable growth, collaboration with customers and suppliers, strategic investments, new product introductions and cost management."