ArvinMeritor Completes Sale of Wheels Business to Iochpe-Maxion S.A.
September 21 2009 - 4:30PM
PR Newswire (US)
TROY, Mich., Sep. 21 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc.
(NYSE: ARM) today announced that it has completed the previously
announced sale of its Wheels business - formerly a division of the
company's Light Vehicle Systems segment - to Iochpe-Maxion S.A., a
Brazilian producer of wheels and frames for commercial vehicles,
railway freight cars and castings, for approximately $180 million.
The company expects to use the net proceeds of $169 million from
the sale to reduce outstanding balances on its revolving credit
facility in advance of its fourth fiscal quarter end. The company
reiterated that it expects to remain in compliance with its
financial covenant in the fourth quarter. "We are pleased to have
completed this transaction, which represents another step forward
in our transformation to becoming a global commercial vehicle and
industrial company with a focus on expanding our leadership
position in both the on- and off-highway equipment and machinery
markets," said Chip McClure, ArvinMeritor's chairman, CEO and
president. "We look forward to using the proceeds from this sale to
further strengthen our balance sheet and to invest in areas that
will help us grow our core business and deliver value to our
shareholders. We would like to thank the entire Wheels team for
their dedication and hard work over many years and wish them much
success in the future." The company will file a Form 8-K with the
Securities and Exchange Commission that further describes the
details of the transaction at http://www.sec.gov/. About
ArvinMeritor ArvinMeritor, Inc. is a premier global supplier of a
broad range of integrated systems, modules and components to
original equipment manufacturers and the aftermarket for the
transportation and industrial sectors. The company marks its
centennial anniversary in 2009, celebrating a long history of
'forward thinking.' The company serves commercial truck, trailer
and specialty original equipment manufacturers and certain
aftermarkets, and light vehicle manufacturers. ArvinMeritor common
stock is traded on the New York Stock Exchange under the ticker
symbol ARM. For more information, visit the company's Web site at:
http://www.arvinmeritor.com/. Forward-Looking Statements This press
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. There are risks and
uncertainties relating to our ability to obtain any needed waiver
or amendment to our credit agreement; our ability to achieve
anticipated or continued cost savings from reduction actions; and
our ability to execute the Company's announced plans for the Body
Systems and Chassis Systems businesses of LVS, including the timing
and certainty of completion or the terms upon which any sale
agreement with respect to any portion of the business may be made
and the amount of any exit costs. In addition, actual results may
differ materially from those projected as a result of certain risks
and uncertainties, including but not limited to global economic and
market cycles and conditions, including the recent global economic
crisis; whether we will have sufficient liquidity as we continue to
be affected by declining vehicle production volumes; 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; 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 demand for
commercial, specialty and light vehicles for which the company
supplies products; 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); availability and rising cost of raw materials,
including steel and oil; 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; 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 and the ability to achieve the expected benefits of
restructuring actions; 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 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 and warranty and recall claims; rising costs of
pension and other post-retirement benefits and possible changes in
pension and other accounting rules; as well as other risks and
uncertainties, including but not limited to those detailed from
time to time in 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. (Logo:
http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO )
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http://photoarchive.ap.org/ DATASOURCE: ArvinMeritor, Inc. CONTACT:
Media Inquiries, Lin Cummins, +1-248-435-7112, ; or Investor
Inquiries, Brett Penzkofer, +1-248-435-9426, , both of
ArvinMeritor, Inc. Web Site: http://www.arvinmeritor.com/
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