ArvinMeritor, Inc. today reported sales from continuing operations of $1.7 billion for its first fiscal quarter ended Dec. 30, 2007 -- , up $95 million from the same period last year.
The company also reported:
- On a GAAP basis, net loss from continuing operations of $1 million or $0.01 per diluted share, compared to net income from continuing operations of $10 million or $0.14 per diluted share in the same period last year.
- Net income from continuing operations, before special items, of $6 million, or $0.08 per diluted share, compared to $12 million, or $0.17 per diluted share, in the same period last year.
- Free cash outflow of $305 million compared to an outflow of $64 million in the first quarter of fiscal year 2007. This represents negative cash flow from operations ($271 million and $33 million, respectively) and capital expenditures ($34 million and $31 million, respectively).
Chip McClure, chairman, CEO and president said, "We demonstrated stronger operating performance this quarter despite Class 8 volumes being down approximately 50 percent in North America. The actions we have implemented through our Performance Plus program, particularly in Europe, are gaining traction and driving improved EBITDA and margins."
He offered these business highlights:
- Increased CVS EBITDA margins by six-tenths of a percentage point in the first quarter of fiscal year 2008 compared to the same period last year.
- Acquired Mascot Truck Parts Ltd., a remanufacturer of transmissions, drive axle carriers, steering gears and drivelines, to drive the company's strategy to grow its Commercial Vehicle Aftermarket business.
- Awarded new business to supply more than four million window regulator motors, 700,000 plastic door modules, and 700,000 Next Generation latch sets annually to Hyundai Motor Company beginning in 2010.
- Amended the company's senior secured credit facility to offer greater flexibility and access to increased liquidity.
The company reduced its calendar year 2008 forecast for light vehicle sales to 15.5 million vehicles in North America, down from 15.7 million vehicles forecasted in its last update in December. The company's forecast for Western Europe is 17.1 million vehicles, unchanged from the last update.
ArvinMeritor's fiscal year 2008 forecast for North American Class 8 truck production is in the range of 210,000 to 230,000 units. The company's fiscal year 2008 forecast for heavy and medium truck volumes in Western Europe is 530,000 to 540,000, equal to the previous forecast. On a calendar year basis, the company anticipates North America Class 8 truck production to be in the range of 235,000 to 255,000 units; and heavy and medium truck volumes in Western Europe to be in the range of 540,000 to 550,000.
The company anticipates sales from continuing operations in fiscal year 2008 in the range of $6.9 billion to $7.1 billion due to continued growth outside the U.S. and favorable foreign exchange movements. The outlook for full-year EBITDA from continuing operations, before special items, is expected to be in the range of $385 million to $405 million for the fiscal year. ArvinMeritor reaffirms its forecast for diluted earnings per share from continuing operations, before special items, to be in the range of $1.40 to $1.60. This guidance is based on the assumption of 2.2 percent U.S. GDP growth, and excludes gains or losses on divestitures and restructuring costs.
ArvinMeritor is revising its forecast for free cash flow to be in the range of negative $75 million to negative $125 million due in large part to increased working capital requirements driven by higher sales volumes in Europe and Asia Pacific.