ArvinMeritor, Inc. today issued guidance for the first quarter of fiscal year 2009, and withdrew previously released earnings expectations issued on Nov. 18, 2008, for the full year ending Sept. 27, 2009. The company is withdrawing full-year guidance due to continuing distress in the global markets and the uncertainty associated with projecting production volumes in the second half of the fiscal year.
For the first quarter of fiscal year 2009, ArvinMeritor expects to generate $50 million to $58 million of EBITDA (defined as income or loss from continuing operations before interest, income taxes, depreciation and amortization and loss on sale of receivables) on slightly more than $1 billion in sales, before special items. The company anticipates free cash outflow in the first quarter of 2009 to be less than its free cash outflow in the same period last year.
ArvinMeritor's financial guidance for the first quarter of 2009 is for continuing operations -- which includes ArvinMeritor's commercial vehicle systems and wheels businesses. The company expects the remaining light vehicle systems (LVS) businesses to be separated during 2009. The LVS outlook continues to be weak and may negatively affect the company's overall financial condition and GAAP results of operations until the point of sale.
The company is hosting its annual Analyst Day in New York City today where its executive team including Chip McClure, chairman, CEO and president; Carsten Reinhardt, president, Commercial Vehicle Systems; Jay Craig, senior vice president and CFO and Mary Lehmann, senior vice president, Strategic Initiatives, and Treasurer will present to investors and analysts.
Specifically, the team will provide a detailed overview of its commercial vehicle and wheels businesses and discuss actions it is taking to mitigate the effects of the current economic environment.