TROY, Mich. – Meritor has reported financial results for its first fiscal quarter ended Dec. 31, 2012.
For the first quarter of fiscal year 2013, Meritor posted sales of $891 million, down 23 percent from the same period last year. The company said this decrease was primarily due to lower sales in all global markets that the company serves.
Loss from continuing operations, on a GAAP basis, was $16 million or 17 cents per diluted share, compared to a loss from continuing operations of $13 million or 13 cents per diluted share in the prior year. Loss from continuing operations includes $6 million of restructuring charges in the first quarter of fiscal year 2013. Loss from continuing operations in the prior year period includes $24 million of restructuring charges, primarily associated with the sale of the company’s facility in France.
"Our performance this quarter was slightly below our expectations driven primarily by weaker than expected market conditions outside North America," said Chairman, CEO and President Chip McClure. "In response to these changing conditions and the impact of reduced military spending, we have taken aggressive actions targeted at variable labor and structural cost reductions which we expect to drive improving margins in the coming quarters."
Adjusted loss from continuing operations in the first quarter of fiscal year 2013 was $11 million, or 11 cents per diluted share, compared to adjusted income from continuing operations of $11 million, or 12 cents per diluted share, a year ago.
Commercial Truck & Industrial sales were $715 million, down $260 million from the same period last year. The company’s Aftermarket & Trailer segment posted sales of $203 million, down $15 million from the same period last year, primarily due to lower volumes in North America.
The company also announced it has initiated structural cost reductions that will result in the elimination of 200 positions worldwide and also initiated consolidation of its North American remanufacturing operations.
"These actions were necessary to drive efficiencies across the organization in alignment with the rationalization of our business segments," said McClure.
Revised Outlook for 2013
For fiscal year 2013, the company is revising its expectations, including the expectation that revenue will be approximately $3.8 billion (previously $4 billion). Adjusted earnings per share from continuing operations are expected to be in the range of 25 cents to 35 cent.
"We’re executing on our 2013 priorities in the face of significant volume pressures outside North America," said McClure. "We remain committed to driving toward meeting the needs of all our stakeholders while continuing to invest in our market leadership positions."
