TROY, MI — ArvinMeritor has reported record sales of $2.3 billion and net income of $41 million, or $0.59 per diluted share, for its second fiscal quarter, which ended March 31. This compared to the prior year’s second-quarter net income of $24 million, or $0.36 per diluted share.
The second quarter included a gain and associated tax benefits of $0.23 per diluted share on the sale of the company’s 75-percent shareholding in AP Amortiguadores, S.A. (APA), a joint venture that manufactures ride control products, and a charge of $0.08 per diluted share, resulting from an agreement with the Environmental Protection Agency to remediate a former Rockwell facility that was sold in 1985.
Sales increased $261 million, up 13 percent, from the prior year’s second quarter. On a constant currency basis, the company said sales would have been up approximately six percent, compared to the second quarter of fiscal year 2003, primarily as a result of stronger North American commercial vehicle truck and trailer volumes.
Operating income for the second quarter was $81 million, a 29-percent improvement compared to the same period last year. Operating income in the second quarter included a pre-tax gain of $20 million on the sale of APA and the environmental remediation costs of $8 million. Without these items, operating income would have increased 10 percent, despite higher pension and retiree medical costs, which were $8 million higher than the same quarter in fiscal year 2003, and higher steel costs of $8 million.
To learn more about ArvinMeritor, go to: www.arvinmeritor.com.
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