ArvinMeritor Inc. reported a 9% increase in income for its second fiscal quarter despite a 6% decline in sales.
Sales for the quarter, which ended March 31, were $1.7 billion, $100 million below second quarter 2001. Net income was $35 million, $3 million higher than the previous year.
"Reduced build rates for heavy and medium duty trucks, as well as softness in Western European light vehicle production, continued to have a negative impact on our sales,” said Chairman and CEO Larry Yost. But he noted that the company was able to improve its financial performance despite lower sales volume, mainly through restructuring and other cost-reduction initiatives.
Commercial Vehicle Systems (CVS) sales were $532 million, down $51 million, or 9% from last year's second quarter. The decline in Class 8 North American truck production was the major factor in the sales decrease, the company said. Despite the sales decline, operating margin improved to 3%, from 2.2% in the second quarter of fiscal year 2001. ArvinMeritor forecasts Class 8 truck production for the U.S. and Canada at 142,000 for fiscal 2002, which ends Sept. 30.
Light Vehicle Systems (LVS) sales were $913 million, down $38 million, or 4% from the second quarter of fiscal year 2001. LVS operating margin fell to 5.8% from 6.6% in last year's second quarter. Continued pricing pressures from the vehicle manufacturers, coupled with higher engineering costs associated with new product development for aperture and undercarriage modules and air induction technology, contributed to the operating margin decline.
Light Vehicle Aftermarket (LVA) sales were $205 million, down $11 million, or 5% from last year's second quarter. LVA was able to increase its operating margin to 5.9%, as compared to 4.2% in the prior year's second quarter, as the result of improved pricing and continuing cost-reduction actions.
For the first six months of fiscal year 2002, ArvinMeritor sales totaled $3.3 billion, down $193 million or 6%, compared to the same period last year. Net income before special items was $56 million, down $1 million from the same period in the prior year.
Sales for the quarter, which ended March 31, were $1.7 billion, $100 million below second quarter 2001. Net income was $35 million, $3 million higher than the previous year.
"Reduced build rates for heavy and medium duty trucks, as well as softness in Western European light vehicle production, continued to have a negative impact on our sales,” said Chairman and CEO Larry Yost. But he noted that the company was able to improve its financial performance despite lower sales volume, mainly through restructuring and other cost-reduction initiatives.
Commercial Vehicle Systems (CVS) sales were $532 million, down $51 million, or 9% from last year's second quarter. The decline in Class 8 North American truck production was the major factor in the sales decrease, the company said. Despite the sales decline, operating margin improved to 3%, from 2.2% in the second quarter of fiscal year 2001. ArvinMeritor forecasts Class 8 truck production for the U.S. and Canada at 142,000 for fiscal 2002, which ends Sept. 30.
Light Vehicle Systems (LVS) sales were $913 million, down $38 million, or 4% from the second quarter of fiscal year 2001. LVS operating margin fell to 5.8% from 6.6% in last year's second quarter. Continued pricing pressures from the vehicle manufacturers, coupled with higher engineering costs associated with new product development for aperture and undercarriage modules and air induction technology, contributed to the operating margin decline.
Light Vehicle Aftermarket (LVA) sales were $205 million, down $11 million, or 5% from last year's second quarter. LVA was able to increase its operating margin to 5.9%, as compared to 4.2% in the prior year's second quarter, as the result of improved pricing and continuing cost-reduction actions.
For the first six months of fiscal year 2002, ArvinMeritor sales totaled $3.3 billion, down $193 million or 6%, compared to the same period last year. Net income before special items was $56 million, down $1 million from the same period in the prior year.
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