TROY, Mich. – ArvinMeritor has reported financial results for its second quarter ended March 31.
The company reported sales of $1.8 billion, approximately $150 million higher than the same period last year primarily due to the effects of changes in foreign currency. Net income was $20 million, or 28 cents per diluted share, compared to a net loss of $94 million, or $1.34 per diluted share in the second quarter of fiscal year 2007.
Income from continuing operations, before special items, was $27 million, or 37 cents per diluted share, compared to $12 million, or 17 cents per diluted share one year ago. Cash flow from operations, net of capital expenditures, was $134 million compared to an outflow of $71 million in the same period last year.
Commercial Vehicle Systems (CVS) EBITDA margins increased by 1.5 percentage points, before special items, in the second quarter of fiscal year 2008 compared to the same period last year, despite lower commercial vehicle volumes in North America.
Performance Plus initiatives, part of the company’s cost reduction program, implemented during the second quarter will result in savings of $32 million on an annual run-rate basis. The company continues to expect Performance Plus cost reductions of $75 million this year net of known risks; growth opportunities previously announced will provide incremental profit opportunities.
"In spite of the downturn in the North American commercial vehicle market that has lasted longer than we anticipated, and volume declines in the light vehicle market in North America, we delivered strong results this quarter," said Chairman, CEO and President Chip McClure. "Initiatives driven through Performance Plus, including lean improvements in our global manufacturing operations, are helping us put in place a solid foundation for continued earnings growth."
In the second quarter of fiscal year 2008, ArvinMeritor posted sales from continuing operations of $1.8 billion, up from the same period last year. Excluding the impact of foreign currency translation, sales were flat due to a continued weak economy in North America, offset by strong sales growth in South America, Europe and Asia.
The company now expects sales from continuing operations in fiscal year 2008 in the range of $7.1 billion to $7.3 billion, up $200 million from the previous guidance primarily due to foreign exchange movements and continued growth outside the U.S.
"Commodity prices are spiking in a dramatic fashion," said McClure. "These increases, combined with resulting higher energy costs, require us to take additional recovery actions to mitigate future impact. For fiscal year 2008, we remain focused on our strategy to deliver results and are confident we will achieve our full-year guidance."
For more information about ArvinMeritor, go to: www.arvinmeritor.com.
