ArvinMeritor reported sales of $1.8 billion and net income before special items of $29 million for its third fiscal quarter, ending June 30, 2001.
Sales dropped $263 million, or 13%, and net income before special items fell $55 million, or 65%, from the same period last year.
Special items in the third quarter include a net favorable adjustment of $1 million related to the company's restructuring actions. Special items in the third quarter of fiscal 2000 include $26 million in restructuring charges plus a $6 million gaon in the sale of land.
"The weakened economy -- most notably the ongoing soft North American Class 8 truck market and weak light vehicle replacement markets -- continues to have a significant impact on our sales," said Larry Yost, ArvinMeritor'schairman and CEO. "I'm pleased to report, however, that, as we mark our first year as a new company, we see a slowing of the decline in these markets. Moreover, the successful results of our recent integration efforts have fully positioned us to take advantage of growth opportunities in every one of our businesses."
Sales in its Commercial Vehicle Systems unit were $559 million, down 26% from $754
million for the comparable period last year. CVS operating margin was 0.7%, down from 9.5%in the third quarter of last year. The decline in the North American Class 8 commercial truck market was the major factor in this margin decline, the company said.
Light Vehicle System sales were down slightly in the third quarter to $961 million, as compared to $986 million in the third quarter of last year. LVS operating margin fell to 6.3%, from 7.6% a year ago. Light Vehicle Aftermarket sales were $235 million, down 12% from $268 million a year ago. LVA increased its operating margin during the third quarter of fiscal 2001, to 7.2%, up from 5.6% in last year's third quarter.
Yost said ArvinMeritor hasn’t changed its previously announced production outlook for fiscal 2001, which puts North American Class 8 production at 135,000 units. North American light vehicle production is forecast at 15.9 million vehicles, European production at 16.5 million vehicles.
Sales dropped $263 million, or 13%, and net income before special items fell $55 million, or 65%, from the same period last year.
Special items in the third quarter include a net favorable adjustment of $1 million related to the company's restructuring actions. Special items in the third quarter of fiscal 2000 include $26 million in restructuring charges plus a $6 million gaon in the sale of land.
"The weakened economy -- most notably the ongoing soft North American Class 8 truck market and weak light vehicle replacement markets -- continues to have a significant impact on our sales," said Larry Yost, ArvinMeritor'schairman and CEO. "I'm pleased to report, however, that, as we mark our first year as a new company, we see a slowing of the decline in these markets. Moreover, the successful results of our recent integration efforts have fully positioned us to take advantage of growth opportunities in every one of our businesses."
Sales in its Commercial Vehicle Systems unit were $559 million, down 26% from $754
million for the comparable period last year. CVS operating margin was 0.7%, down from 9.5%in the third quarter of last year. The decline in the North American Class 8 commercial truck market was the major factor in this margin decline, the company said.
Light Vehicle System sales were down slightly in the third quarter to $961 million, as compared to $986 million in the third quarter of last year. LVS operating margin fell to 6.3%, from 7.6% a year ago. Light Vehicle Aftermarket sales were $235 million, down 12% from $268 million a year ago. LVA increased its operating margin during the third quarter of fiscal 2001, to 7.2%, up from 5.6% in last year's third quarter.
Yost said ArvinMeritor hasn’t changed its previously announced production outlook for fiscal 2001, which puts North American Class 8 production at 135,000 units. North American light vehicle production is forecast at 15.9 million vehicles, European production at 16.5 million vehicles.
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