ArvinMeritor Inc. reported sales of $2 billion and net income of $24 million, or $0.36 per share, for its second fiscal quarter ended March 31, 2003.

Sales increased $306 million, or 18%, as compared to last year's second quarter. The company's acquisition of the remaining 51% interest in Zeuna Starker added sales of $198 million in the second fiscal quarter, and the stronger euro also favorably impacted sales by about $100 million.
Without these items, sales would have been essentially flat. Net income declined $11 million, as compared to last year's second quarter net income of $35 million.
ArvinMeritor Chairman and Chief Executive Officer Larry Yost said, "We are pleased with the performance of our Commercial Vehicle Systems business group, which benefited from the stronger North American Class 8 truck and trailer volumes. Some of our other businesses, however, did not meet our expectations."
Commercial Vehicle Systems (CVS) sales were $589 million, up $57 million, or 11%, from the second quarter of fiscal year 2002, and operating margin improved to 4.9%, up from 3%.
"Our current outlook for Class 8 truck production in North America is 166,000 units for fiscal year 2003, up 3% from our previous forecast," Yost said.
"Our latest sales outlook for fiscal year 2003 is $7.7 billion, and we anticipate full-year diluted earnings per share in the range of $2 to $2.10.
"For the third quarter of fiscal year 2003, we expect sales of about $2.1 billion, and our outlook for diluted earnings per share is in the range of $0.67 to $0.72. Our fiscal year 2003 earnings outlook reflects softening demand across our business groups, with the exception of the Commercial Vehicle Systems group."
ArvinMeritor, Inc. is a $7-billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets.