ArvinMeritor, Inc. reported record sales of $2.5 billion for its third fiscal quarter ended June 30, 2006-up 4 percent from the third quarter of
Net income was $20 million or $0.29 per diluted share, compared to $46
million, or $0.66 per diluted share in the same period last year.
On a GAAP basis, income from continuing operations was $25 million or
$0.36 per diluted share, compared to $50 million or $0.72 per diluted
share in the same period last year; this decline was primarily due to a
labor disruption at an ArvinMeritor brake facility in Canada which
unfavorably impacted income from continuing operations by $28 million,
Income from continuing operations, before special items, was $51
million or $0.73 per diluted share, exceeding the previous guidance of
$0.60 to $0.70 per diluted share.
Free cash flow was $155 million, an improvement of $96 million from the
same period last year.
Continued reduction of net debt -- down $481 million from the same
period last year.
Completed new $1.15 billion secured credit facilities that extend
maturities to 2011 and 2012.
Announced the divestitures of two additional businesses within Light
Vehicle Aftermarket (LVA).
"Our results for the third quarter of fiscal 2006 build upon the
continued execution of our strategic initiatives, including previously
announced restructuring activities and our ongoing focus on operational
performance," said Chairman, CEO and President Chip McClure. "However, we cannot discount the significant impact of the labor disruption that occurred in June at our brake facility in Tilbury, Ontario.
"We regret the disruption and inconvenience this temporary work
stoppage had on the production schedules of certain customers, but we are
pleased that this situation was quickly resolved. We are back on track and
running at full capacity to provide the superior support and service our
customers have come to expect from us. Excluding the impact of this
disruption, we are proud of the performance we delivered in the quarter,
exceeding the top end of our guidance range."