TROY, MI — ArvinMeritor, Inc. reported a net income of $34 million, or $0.49 per diluted share, for first fiscal quarter ending Dec. 31, an earnings increase of more than 88 percent from last year’s total of $18 million, or $0.26 per diluted share.

In December 2005, the company sold its Asti, Italy ride control business. This sale, along with the previous divestiture of its shareholdings in AP Amortiguadores, S.A. (APA) in fiscal year 2004, continues to move the company toward its plan to exit the Light Vehicle Systems (LVS) ride control business, and focus resources on its core operations. As a result, ride control is now reported as discontinued operations.

“We delivered a good quarter and are pleased to have met first-quarter expectations at the higher end of our guidance, in addition to reporting another quarter of strong free cash flow. We are starting to see the benefits of the restructuring plan we announced in fiscal year 2005 and other aggressive cost reduction programs, which continue to strengthen our global businesses,” said Chairman, CEO and President Chip McClure.

Income from continuing operations, before special items, was $11 million, or $0.16 per diluted share — the higher end of the company’s previous guidance.

“We continue to make significant progress in our efforts to refocus and maximize our operational efficiencies through the sale of non-core assets,” McClure said. “In the first quarter of fiscal year 2006, we completed the divestiture of our off-highway brake assets and the sale of our 39-percent share in Purolator India, for total proceeds of $48 million.”

The benefits of stronger volumes in ArvinMeritor’s Commercial Vehicle Systems business, and cost reductions resulting from restructuring programs, were largely offset by the loss of income from previous divestitures and higher energy and pension costs.

The company’s fiscal year 2006 outlook for light vehicle production is 15.6 million vehicles in North America and 16.4 million vehicles in Western Europe. The forecast for North American Class 8 truck production is 325,000 units in fiscal year 2006, up from the 305,000 units projected in our previous outlook.

For the second quarter of fiscal year 2006, the sales forecast for continuing operations is $2.2 billion. The company’s outlook for diluted earnings per share from continuing operations for the second quarter is $0.35 to $0.40, before special items.

_______________________________________

Click here to view the rest of today’s headlines.