Meritor Reports Profits for Third Quarter
July 31, 2014
Sales were down slightly for Meritor in its third fiscal quarter, but partly thanks to a settlement of an antitrust suit with Eaton, it saw net income of $234 million, compared to a net loss of $38 million in the same period last year.
For the quarter ending June 30, Meritor Inc. posted sales of $986 million, down $7 million or 1% from the same period last year. This decrease was primarily due to lower commercial truck production in South America and the continued step down in revenue from the Family of Medium Tactical Vehicles program, which more than offset higher commercial truck production in North America.
Meritor's results from the quarter ended June 30 benefited from $209 million from the antitrust settlement with Eaton Corp. (including recovery of legal fees).
Adjusted income from continuing operations was $28 million, or $0.28 per diluted share, compared to $33 million, or $0.34 per diluted share, a year ago. This figure excludes the $209 million from the antitrust settlement with Eaton Corp., less reimbursement of current year legal fees.
Commercial Truck & Industrial sales were $761 million, down $23 million or 3%, compared with the same period last year. The decrease was primarily due to lower commercial truck production in South America and lower defense revenue, partially offset by higher commercial truck production in North America.
The Aftermarket & Trailer segment posted sales of $259 million, up $21 million or 9%, from the same period last year. The loss of earnings associated with the company's ownership interest in Suspensys, which was sold in the fourth quarter of fiscal year 2013, offset the benefit of higher revenue.
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