Meritor Reports Net Income of $49 Million, Up 188 Percent Year Over Year
August 2, 2012
Meritor, Inc. reported strong financial results for its third fiscal quarter ended June 30, 2012, with net income of $49 million, compared with $17 million for the third quarter of 2011.
Although net income was up, the company's sales were of $1.11 billion, down 13 percent from the same period last year due to lower sales volumes in Brazil, Europe, China and India and weaker currency translation.
The company said its 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 the regions mentioned previously.
Meritor's aftermarket and trailer segment saw sales of $265 million, which is 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.