ArvinMeritor Inc. (ARM) reported breakeven results in its fiscal
first-quarter due to improved margins, compared with a year-earlier
loss which included steep charges.
The auto-parts supplier also said it expected second-quarter
revenue to be flat sequentially, or $1.15 billion. Analysts polled
by Thomson Reuters expected $1.05 billion.
The industry's outlook has improved in recent months amid
expectations that sales will improve in North America and Europe
this year. For ArvinMeritor and others, that should lead to reduced
cash use and improved results. All three major ratings agencies
lowered ArvinMeritor to highly speculative territory last year amid
the auto sales slump, but have become more positive of late.
For the quarter ended Dec. 31, the maker of commercial- and
light-vehicle parts posted breakeven results, compared with a
prior-year loss of $961 million, or $13.29 a share, which included
$856 million in write-downs.
Revenue declined 6.1% to $1.15 billion.
Analysts polled by Thomson Reuters expected a 7-cent loss on
revenue of $1.06 billion.
Gross margin rose to 10% from 6.1% on cost-cuttting.
Sales at its commercial-vehicle systems business--its
largest--fell 27% as the unit swung to a small profit. Sales also
fell at the aftermarket and trailer business, but rose for
industrial and light vehicle systems. ArvinMeritor sells axles,
braking and suspension systems for trucks, while also providing
body systems for light vehicles. About half of the company's sales
are in North America, and a third are in Europe.
Shares closed Monday at $10.09 and were inactive in premarket
trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com