August 06, 2012
Meritor reported net income of $49 million for its third fiscal quarter, up 188% compared with $17 million for the same quarter a year ago.Although net income was up, the company's sales of $1.11 billion were down 13% from the same period last year due to lower sales volumes in Brazil, Europe, China and India and weaker currency translation.Commercial truck sales were $690 million, down by $80 million compared with the same period in 2011. Sales volumes were higher in North America but offset by reduced sales in other regions.Meritor's aftermarket and trailer segment saw sales of $265 million, down $13 million from the same period in 2011. This drop was due to weaker currency translation and lower European aftermarket volumes.The company's adjusted income from continuing operations in the third quarter of the 2012 fiscal year was $37 million, compared to $29 million a year ago. Adjusted EBITDA was $92 million, compared to $103 million in the third quarter of fiscal-year 2011. The adjusted EBITDA margin for the third quarter of fiscal-year 2012 was 8.3% compared to 8.1% for the same period last year. Meritor said that adjusted EBITDA margin improvement was mostly due to the continued benefit of North American pricing actions and streamlining manufacturing operations in Europe ("footprint rationalization"), plus an improved military mix, which offset the impact on EBITDA of lower sales volumes.