TROY, MI — ArvinMeritor has reported financial results for its first fiscal quarter ended Dec. 31, 2006.
For the first quarter of fiscal year 2007, ArvinMeritor posted sales from continuing operations of $2.3 billion, a 12-percent increase from the same period last year. The impact of foreign currency translation and strong sales in Commercial Vehicle Systems (CVS) in North America and Europe were partially offset by a decrease in domestic original equipment manufacturers (OEMs) light vehicle production and a strike at a customer’s facility in Brussels, Belgium, which temporarily shut down an ArvinMeritor door module facility.
EBITDA, before special items, was $86 million, down $2 million from the same period last year. The company said this decrease is partially due to higher than anticipated costs associated with the simultaneous launch of a new axle product line and a new ERP system in Europe.
Income from continuing operations was $11 million, or 16 cents per diluted share, compared to $28 million, or 40 cents per diluted share, a year ago. This decrease reflects a one-time, pre-tax gain of $23 million in the first fiscal quarter of 2006 from the sale of the CVS off-highway brake assets. Net income was $7 million, or 10 cents per diluted share, compared to $34 million, or 49 cents per diluted share last year, a decrease of $27 million, or 39 cents per diluted share.
The company reduced its fiscal year 2007 forecast for light vehicle production to 15.3 million vehicles in North America, down from 15.8 million forecasted last quarter. The company’s forecast for Western Europe is unchanged at 16.1 million vehicles.
Chip McClure, chairman, president and CEO, said, "We are operating in a difficult environment in the passenger car, light-duty truck and commercial vehicle segments. In an effort to address the ongoing challenges, and create value for our shareowners, we are making good progress and are on track with our recently announced initiative, Performance Plus. By proactively taking control of our future through this global transformational initiative, while at the same time maintaining focus on improving our operational and financial performance, we will emerge a stronger, more dynamic global organization."
ArvinMeritor’s forecast for North American Class 8 truck production is 235,000 units in fiscal year 2007 (200,000 for the 2007 calendar year), unchanged from the company’s prior forecast. The company’s fiscal year 2007 forecast for heavy and medium truck volumes in Western Europe is 475,000 units, up from the previous forecast of 419,000 units.
The company anticipates sales from continuing operations in fiscal year 2007 in the range of $8.9 to $9.1 billion, and the outlook for full-year diluted earnings per share from continuing operations to be in the range of $1.15 to $1.25. Cash flow guidance for fiscal year 2007 is $75 million to $125 million, as previously forecast. This guidance excludes gains or losses on divestitures, restructuring costs and other special items, including potential extended customer shutdowns or production interruptions.
"We are focused on redefining ArvinMeritor by creating a culture of operational, commercial and individual excellence," said McClure. "Our vision is to be a global systems provider focused on our target markets, deliver strong financial performance and drive even greater value for our shareowners, employees and customers."
For more information about ArvinMeritor, go to: http://www.arvinmeritor.com.