DOW JONES NEWSWIRES
ArvinMeritor Inc. (ARM) swung to a fiscal first-quarter loss
amid restructuring related charges and higher taxes, though its
commercial-truck business posted sharply improved sales.
For the current quarter, the company expects revenue of $1.13
billion to $1.8 billion. Analysts polled by Thomson Reuters most
recently expected $1.03 billion.
The producer of parts for commercial vehicles has reported
improved results in recent quarters, helped by a turnaround in
vehicle demand and a restructuring effort that has tied its future
to the commercial truck industry. Last week, Standard & Poor's
Ratings Services upgraded the company a notch, citing recovering
demand in North America and Europe.
The company's shareholders recently approved plans to change the
company's name to Meritor Inc. amid the company's new focus after
completing the sale of its body systems segment last month.
For the quarter ended Dec. 31, ArvinMeritor reported a loss of
$2 million, or 3 cents a share. A year earlier it broke even.
Excluding tax impacts, the loss widened to 7 cents compared to 6
cents. Revenue jumped 21% to $971 million.
Analysts expected earnings to break even on $964.5 million in
revenue.
Gross margin fell to 10.7% from 11.1%.
At its commercial-truck business--its largest by revenue--sales
climbed 33% and profit more than doubled.
Shares closed Monday at $21.86 and were inactive premarket. The
stock has more than doubled in the past year.
-By Tess Stynes and Matt Jarzemsky, Dow Jones Newswires;
212-416-2240; matthew.jarzemsky@dowjones.com