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ArvinMeritor 1Q Profit Climbs On Strong Sales

Tue, 05/04/2010 - 12:25pm
Manufacturing.net

TROY, Mich. (AP) -- Auto supplier ArvinMeritor Inc. said Tuesday it made $13 million in the first three months of this year thanks to strong sales in emerging markets and increased commercial sales in North America and Europe.

The profit of 16 cents per share was the latest good news for suppliers, who were rattled by bankruptcies and the downturn in auto sales during the recession.

In the same quarter a year earlier, ArvinMeritor -- which is based in Troy, Mich., and makes axles, brakes, trailer systems and other parts -- lost $49 million, or 67 cents per share.

The company\'s revenue for its fiscal second quarter, which ended March 31, rose 25 percent to $1.2 billion.

Analysts surveyed by Thomson Reuters were expecting it to report earning 2 cents per share on revenue of $1.09 billion.

The company expects its third-quarter revenue to be flat, compared with a year earlier, and its profit income to drop slightly.

"We anticipate markets in Europe, South America and Asia Pacific to continue to strengthen, while the North American market may soften in the short term as a result of the emissions changeover and a lower demand for military products," President and CEO Chip McClure said in a statement.

ArvinMeritor said its commercial truck-related sales rose 31 percent to $458 million, but its trailer sales fell as the result of decreased business from military customers.

ArvinMeritor shares rose 10 cents to $15.93 in morning trading.

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