TROY, MI — ArvinMeritor announced today it expects earnings from continuing operations for the third quarter to be at the higher end of the range forecasted in early May of 60 cents to 70 cents per diluted share, before special items. In addition, the company now expects its earnings for the full fiscal year to be at the higher end of the previously forecasted range of $1.40 to $1.60 per diluted share, before special items.
“Our strong performance during April and May has raised our expectations for the third quarter, and we anticipate this improved performance will lead to higher earnings for the full fiscal year as well,” said Chairman, CEO and President Charles “Chip” McClure. “Our improved operating performance and record sales from our Commercial Vehicle Systems group are the main contributors driving our stronger outlook. Prior guidance on our cash flow remains unchanged due to increased working capital associated with higher volumes. We’re also beginning to see returns from the aggressive reductions we have made in our cost structure.”
McClure added that the sale of the company’s North American Light Vehicle Aftermarket business is also on track, and is to be completed in the second half of the fiscal year.
“While these positive performance indicators are encouraging, we continue to address the ongoing challenges that impact our industry, including higher steel prices, global competition and pricing pressures from our customers,” said McClure. “We remain committed to further improving our performance in each of our core businesses and continuing to enhance value for our shareowners.”
The company plans to release its third quarter results on July 28.
For more information about ArvinMeritor, go to: www.arvinmeritor.com.
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