TROY, Mich., July 21, 2011 /PRNewswire-FirstCall/ -- Meritor,
Inc. (NYSE: MTOR) announced today it is tightening its EBITDA
guidance within its previously announced range, while slightly
lowering its revenue and free cash flow guidance for its third
quarter of fiscal year 2011.
The company now anticipates the following results from
continuing operations in the third quarter of fiscal year 2011.
- Revenue in the range of $1,280 million
to $1,290 million.
- Adjusted EBITDA in the range of $100
million to $104 million.
- Free cash flow to be around breakeven.
"Sales in the third fiscal quarter are expected to be up between
seven percent and eight percent compared to the second quarter of
fiscal year 2011, with strong EBITDA conversion, keeping us on the
path toward our 2012 financial goals," said Jay Craig, chief financial officer, Meritor.
"Cash flow is expected to be around breakeven primarily due to
investments in inventory."
The company will report full quarterly results for its third
fiscal quarter and provide guidance for its fourth fiscal quarter
of 2011 during its previously scheduled earnings call which will
take place Aug. 2, 2011 at
9 a.m. ET.
About Meritor, Inc.
Meritor, Inc. is a leading global supplier of drivetrain,
mobility, braking and aftermarket solutions for commercial vehicle
and industrial markets. With more than a 100-year legacy of
providing innovative products that offer superior performance,
efficiency and reliability, the company serves commercial truck,
trailer, off-highway, defense, specialty and aftermarket customers
in more than 70 countries. Meritor is based in Troy, Mich., United
States, and is made up of more than 11,000 diverse employees
who apply their knowledge and skills in manufacturing facilities,
engineering centers, joint ventures, distribution centers and
global offices in 19 countries. Common stock is traded on the New
York Stock Exchange under the ticker symbol MTOR. For important
information, visit the company's web site at meritor.com.
Forward Looking Statement
This release contains statements relating to future results
of the company (including certain projections and business trends)
that are "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are typically identified by words or phrases such as
"believe," "expect," "anticipate," "estimate," "should," "are
likely to be," "will" and similar expressions. Actual results may
differ materially from those projected as a result of certain risks
and uncertainties, including but not limited to our ability to
successfully manage steeply increasing volumes in the commercial
truck markets; availability and sharply rising costs of raw
materials, including steel, and our ability to manage or recover
such costs; reduced production for certain military programs and
the return of volumes of selected long-term military contracts to
more normalized levels; global economic and market cycles and
conditions, including the recent global economic crisis; risks
inherent in operating abroad (including foreign currency exchange
rates and potential disruption of production and supply due to
terrorist attacks or acts of aggression); the ability to achieve
the expected benefits of restructuring actions; the demand for
commercial and specialty vehicles for which we supply products;
whether the liquidity of the company will be affected by declining
vehicle productions in the future; OEM program delays; demand for
and market acceptance of new and existing products; successful
development of new products; reliance on major OEM customers; labor
relations of the company, its suppliers and customers, including
potential disruptions in supply of parts to our facilities or
demand for our products due to work stoppages; the financial
condition of the company's suppliers and customers, including
potential bankruptcies; possible adverse effects of any future
suspension of normal trade credit terms by our suppliers; potential
difficulties competing with companies that have avoided their
existing contracts in bankruptcy and reorganization proceedings;
successful integration of acquired or merged businesses; the
ability to achieve the expected annual savings and synergies from
past and future business combinations; success and timing of
potential divestitures; potential impairment of long-lived assets,
including goodwill; potential adjustment of the value of deferred
tax assets; competitive product and pricing pressures; the amount
of the company's debt; the ability of the company to continue to
comply with covenants in its financing agreements; the ability of
the company to access capital markets; credit ratings of the
company's debt; the outcome of existing and any future legal
proceedings, including any litigation with respect to environmental
or asbestos-related matters; the outcome of actual and potential
product liability, warranty and recall claims; rising costs of
pension and other postretirement benefits; and possible changes in
accounting rules; as well as other substantial costs, risks and
uncertainties, including but not limited to those detailed herein
and from time to time in other filings of the company with the SEC.
These forward-looking statements are made only as of the date
hereof, and the company undertakes no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as otherwise
required by law.
All earnings per share amounts are on a diluted basis. The
company's fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters end on the
Sundays nearest Dec. 31, March 31 and June
30. All year and quarter references relate to the company's
fiscal year and fiscal quarters, unless otherwise stated.
SOURCE Meritor, Inc.