ArvinMeritor Reiterates Earnings Expectations for Fiscal Year 2010 Second-Quarter and Planning Assumptions for Full Fiscal Year
February 17 2010 - 7:00AM
PR Newswire (US)
TROY, Mich., Feb. 17 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc.
(NYSE: ARM) will reiterate guidance today for its second quarter of
fiscal year 2010 and its planning assumptions for full fiscal year
2010, during its presentation at Barclays Capital Industrial Select
Conference in Miami, Fla. The presentation by ArvinMeritor will be
simultaneously webcast to the public and the materials will be
posted on http://www.arvinmeritor.com/. The company's financial
guidance for the second quarter of fiscal year 2010 is for expected
results from continuing operations which includes all four of
ArvinMeritor's current segments: Commercial Truck, Industrial,
Aftermarket & Trailer and the remaining Light Vehicle Systems
business. For the second quarter of fiscal year 2010 (compared to
the first fiscal quarter of 2010), the company anticipates: --
Revenues to be flat -- EBITDA, before special items, to be flat --
Income before taxes, before special items, to be flat -- Free cash
flow to be slightly negative primarily due to the company's
semi-annual interest payment on its fixed debt securities. The
company will also reiterate that there was no change in its
planning assumptions for the full fiscal year which call for
capital expenditures in the range of $90-110 million, interest
expense in the range of $95-110 million, income tax expense before
special items in the range of $40-60 million and cash income taxes
in the range of $25-50 million. 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 serves commercial truck, trailer and specialty original
equipment manufacturers and certain aftermarkets, and light vehicle
manufacturers. ArvinMeritor marked its centennial anniversary in
2009, celebrating a long history of 'forward thinking.'
ArvinMeritor common stock is traded on the New York Stock Exchange
under the ticker symbol ARM. For important information about the
company, visit 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 the company's announced plans to divest
the Body Systems business of LVS and any of the strategic options
under which to pursue such divestiture. In the case of any sale of
all or a portion of the business, these risks and uncertainties
include the timing and certainty of completion of any sale, the
terms upon which any purchase and sale agreement may be entered
into (including potential substantial costs) and whether closing
conditions (some of which may not be within the company's control)
will be met. In the case of any shut down of portions of the
business, these risks and uncertainties include the amount of
substantial severance and other payments as well as the length of
time we will continue to have to operate the business, which is
likely to be longer than in a sale scenario. There is also a risk
of loss of customers of this business due to the uncertainty as to
the future of this business. 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; 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); whether our liquidity will be affected by
declining vehicle production volumes in the future; availability
and sharply 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; 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
and the ability to achieve the expected benefits of restructuring
actions; the ability to achieve anticipated or continued cost
savings from reduction actions; 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 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)
http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGODATASOURCE:
ArvinMeritor, Inc. CONTACT: Media Inquiries: Krista Sohm,
+1-248-435-7115, ; or Investor Inquiries: Brett Penzkofer,
+1-248-435-9426, Web Site: http://www.arvinmeritor.com/
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