Finances for the truck component maker Meritor have turned around compared to a year ago, with it reporting a small profit.
Net income during the first three months of the year was $1 million, or one cent per diluted share, compared to a loss of $4, or four cents per diluted share a year earlier.
Much of the reason was due to a gain in sales, totaling $962 million, up $54 million, or 6%, from the same period in 2013. The increase was primarily due to higher commercial truck production in North America and Europe, according to the company.
Commercial truck and industrial sales were $763 million, up $51 million compared with the same period last year. It was primarily due to higher commercial truck production in North America and Europe, partially offset by lower defense revenue. according to the company.
The aftermarket and trailer segment posted sales of $232 million, up $8 million from the same period last year.
The company has raised its expectations for 2014 including:
- Revenue in the range of $3.75 billion to $3.8 billion, increased from approximately $3.7 billion;
- Adjusted earnings per share from continuing operations in the range of 50 cents to 60 cents, increased from the range of 30 cents to 40 cents.
"With our strong execution in the first half of the fiscal year and the anticipated strength in the North American market for Class 8 trucks, we've raised our full-year guidance for revenue, adjusted EBITDA margin and adjusted earnings per share," said Chairman, CEO and President Ike Evans. "Our optimism for the second half is slightly tempered as markets in South America, Europe and India indicate softness in commercial truck demand in these regions."