The slowdown in truck sales that began last year is translating into lower numbers for one component maker.
ArvinMeritor reported sales of $1.7 billion and net income, before special items, of $20 million, for its first fiscal quarter, ended Dec. 31, 2000. Sales declined $265 million, or 14 percent, and net income, before special items, decreased $45 million, or 69 percent, as compared to the same period last year.
Special items in the first quarter of fiscal year 2001 included charges of $46 million related to the company's restructuring actions announced in November 2000.
"Our North American Commercial Vehicle Systems and Light Vehicle Aftermarket businesses have been affected by a continued weak market," says ArvinMeritor Chairman and CEO Larry Yost. "The easing in North American light vehicle production also has contributed significantly to our company's weaker quarter. We are continuing to implement a number of aggressive actions in response to the current market conditions. These include vigorous cost-reduction initiatives, limitations on capital spending, workforce reductions and a reduction in the number of our facilities around the world."
In November 2000, the company announced a $90-million restructuring plan to realign operations to reflect the decline in the company's major markets. To comply with existing accounting rules, these charges are expected to be recorded throughout the fiscal year.
"We expect to see benefits from our restructuring actions starting in January 2001," said Bill Hunt, vice chairman and president. "Although our restructuring plan and merger synergy actions continue at a vigorous pace, and we are making progress in improving our company's cost structure, our top priorities remain keeping service at a high level and exceeding our customers' expectations."
Commercial Vehicle Systems sales were $552 million, down from $747 million, or 26 percent lower, compared to last year's first quarter. Operating margin was 2.2 percent, down from 7.9 percent compared to last year's first quarter. The steep decline experienced in the last two fiscal quarters in the Class 8 North American truck volumes has resulted in a higher fixed-cost ratio, which affects operating margins negatively. CVS operating margins are expected to benefit significantly in the second fiscal quarter, as a result of restructuring and other cost-reduction activities.
"We continue to maintain our vehicle production outlook for fiscal 2001, which shows anticipated North American Class 8 production at 160,000 units and North American and European light vehicle production at 15.9 million and 16.5 million vehicles, respectively," Yost said. "We expect earnings in the second fiscal quarter, ending March 31, 2001, to be in the range of $0.65 to $0.70 per share. We also continue to maintain our previous outlook for earnings of $2.00 to $2.30 per share for the full fiscal year."
ArvinMeritor reported sales of $1.7 billion and net income, before special items, of $20 million, for its first fiscal quarter, ended Dec. 31, 2000. Sales declined $265 million, or 14 percent, and net income, before special items, decreased $45 million, or 69 percent, as compared to the same period last year.
Special items in the first quarter of fiscal year 2001 included charges of $46 million related to the company's restructuring actions announced in November 2000.
"Our North American Commercial Vehicle Systems and Light Vehicle Aftermarket businesses have been affected by a continued weak market," says ArvinMeritor Chairman and CEO Larry Yost. "The easing in North American light vehicle production also has contributed significantly to our company's weaker quarter. We are continuing to implement a number of aggressive actions in response to the current market conditions. These include vigorous cost-reduction initiatives, limitations on capital spending, workforce reductions and a reduction in the number of our facilities around the world."
In November 2000, the company announced a $90-million restructuring plan to realign operations to reflect the decline in the company's major markets. To comply with existing accounting rules, these charges are expected to be recorded throughout the fiscal year.
"We expect to see benefits from our restructuring actions starting in January 2001," said Bill Hunt, vice chairman and president. "Although our restructuring plan and merger synergy actions continue at a vigorous pace, and we are making progress in improving our company's cost structure, our top priorities remain keeping service at a high level and exceeding our customers' expectations."
Commercial Vehicle Systems sales were $552 million, down from $747 million, or 26 percent lower, compared to last year's first quarter. Operating margin was 2.2 percent, down from 7.9 percent compared to last year's first quarter. The steep decline experienced in the last two fiscal quarters in the Class 8 North American truck volumes has resulted in a higher fixed-cost ratio, which affects operating margins negatively. CVS operating margins are expected to benefit significantly in the second fiscal quarter, as a result of restructuring and other cost-reduction activities.
"We continue to maintain our vehicle production outlook for fiscal 2001, which shows anticipated North American Class 8 production at 160,000 units and North American and European light vehicle production at 15.9 million and 16.5 million vehicles, respectively," Yost said. "We expect earnings in the second fiscal quarter, ending March 31, 2001, to be in the range of $0.65 to $0.70 per share. We also continue to maintain our previous outlook for earnings of $2.00 to $2.30 per share for the full fiscal year."
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