ArvinMeritor saw profitability dramatically improve in its first fiscal quarter, thanks to growth in global markets.
The company reported financial results for its first fiscal quarter ended Dec. 31, 2009. For the first quarter of fiscal year 2010, ArvinMeritor posted sales from continuing operations of $1.1 billion, an increase of 16 percent from the fourth fiscal quarter of 2009, and a decrease of approximately 6 percent from the same period last year.
"Our financial results for the first quarter demonstrate that as we experience growth in our global markets, we are successfully retaining the benefits of our previously executed cost reductions," said Chip McClure, chairman, CEO and president.
"This quarter, we were able to convert on incremental revenue while maintaining structural cost improvements and reinstating full salaries to our employees. At the same time, we announced a nearly $10 million planned investment in South America to support our expansion into new product segments, and an additional planned investment of approximately $10 million to increase production capacity at our off-highway axle joint venture in Xuzhou, China. Both of these investments support the strong growth we are experiencing in emerging markets," said McClure.
EBITDA, before special items, was $56 million, up 40 percent from the fourth fiscal quarter of 2009. EBITDA, before special items, was $16 million in the same period last year.
For the second quarter of fiscal year 2010, the company expects revenues, EBITDA before special items, and income before taxes to be flat.
"We will maintain an acute focus on becoming a leading commercial on- and off-highway company in our defined segments by introducing new products that meet our customers' needs, entrenching ourselves in emerging markets, and making investments that enable us to grow profitably," said McClure. "At the same time, we will be diligent in managing our costs."
The company reported financial results for its first fiscal quarter ended Dec. 31, 2009. For the first quarter of fiscal year 2010, ArvinMeritor posted sales from continuing operations of $1.1 billion, an increase of 16 percent from the fourth fiscal quarter of 2009, and a decrease of approximately 6 percent from the same period last year.
"Our financial results for the first quarter demonstrate that as we experience growth in our global markets, we are successfully retaining the benefits of our previously executed cost reductions," said Chip McClure, chairman, CEO and president.
"This quarter, we were able to convert on incremental revenue while maintaining structural cost improvements and reinstating full salaries to our employees. At the same time, we announced a nearly $10 million planned investment in South America to support our expansion into new product segments, and an additional planned investment of approximately $10 million to increase production capacity at our off-highway axle joint venture in Xuzhou, China. Both of these investments support the strong growth we are experiencing in emerging markets," said McClure.
EBITDA, before special items, was $56 million, up 40 percent from the fourth fiscal quarter of 2009. EBITDA, before special items, was $16 million in the same period last year.
For the second quarter of fiscal year 2010, the company expects revenues, EBITDA before special items, and income before taxes to be flat.
"We will maintain an acute focus on becoming a leading commercial on- and off-highway company in our defined segments by introducing new products that meet our customers' needs, entrenching ourselves in emerging markets, and making investments that enable us to grow profitably," said McClure. "At the same time, we will be diligent in managing our costs."
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