Meritor Inc. (MTOR) swung to a fiscal third-quarter profit as
the auto parts maker continued to benefit from rising truck demand,
though the results were still slightly weaker than expected.
The company formerly known as ArvinMeritor has boosted earnings
by successfully cutting costs over the past year, while a rebound
in North American and European auto demand helps improve sales. In
the latest quarter, the company said better global commercial-truck
demand drove top-line growth.
The company changed its name to highlight its focus after the
sale of its body systems segment.
For the quarter ended June 30, the commercial- and light-vehicle
supplier reported a profit of $17 million, or 18 cents a share,
compared with a prior-year loss of $3 million, or 3 cents a share.
Excluding restructuring costs and other items, earnings from
continuing operations were 26 cents a share, versus a loss of 6
cents. Analysts expected earnings of 29 cents a share in the latest
quarter.
Sales grew 33% to $1.29 billion, slightly below the company's
upbeat May projection of $1.3 billion to $1.38 billion.
Gross margin narrowed to 10.4% from 11.4%.
Shares closed at $13.71 Monday and were inactive premarket.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com