For the first quarter of fiscal year 2013, Meritor posted sales of $891 million, down 23% from the same period last year. Meritor says the decrease was primarily due to lower sales in global markets.
For the period ended Dec. 31, Meritor lost $21 million. That compares with a loss of $22 million a year earlier. Excluding restructuring charges, Meritor's loss from continuing operations was 11 cents per share.
* Sales were $891 million, down $268 million or 23% from last year.
* Adjusted EBITDA was $46 million, compared with $79 million last year.
* Operating cash flow was negative $91 million in the first quarter of fiscal year 2013, compared to positive $5 million in the same period last year.
* Free cash flow was negative $106 million in the first quarter of fiscal year 2013, compared to negative $20 million in the same period last year.
"Our performance this quarter was slightly below our expectations driven primarily by weaker than expected market conditions outside North America," said Chairman, CEO and President, Chip McClure. "In response to these changing conditions and the impact of reduced military spending, we have taken aggressive actions targeted at variable labor and structural cost reductions which we expect to drive improving margins in the coming quarters."
Commercial Truck & Industrial sales were $715 million, down $260 million from the same period last year.
The company's Aftermarket & Trailer segment posted sales of $203 million, down $15 million from the same period last year, primarily due to lower volumes in North America.
Meritor now projects revenue for fiscal 2013 to be about $3.8 billion, down from a previous forecast of $4 billion.
Recent Class 8 trade volumes have been lower than predicted, which means pricing has been more stable than expected for used trucks, according to J.D. Power & Associates.