Stronger build rates for Class 8 trucks in North America had a major impact on ArvinMeritor’s third quarter revenues
, said Chairman and CEO Larry Yost.
Sales for the company’s Commercial Vehicle Systems business group totaled $622 million for the quarter, up 11% from third quarter last year. Operating margin for the period, which ended June 30, was 5.6% compared to 1.3% a year ago.
“We’re seeing the benefit of higher volumes, as well as the benefit of our cost-reduction and restructuring initiatives that have allowed us to lower our fixed-cost structure,” Yost said. He also noted that they believe a large part of stronger Class 8 demand is due to the pre-buy to avoid new emissions standards effective October 1. ArvinMeritor is forecasting Class 8 U.S. and Canadian production at 154,000 units for its fiscal 2002, which ends September 30. They also expect a drop in demand during the first half of their fiscal 2003.
Third quarter sales for all ArvinMeritor operations totaled $1.9 billion, up 5% from last year. Net income before special items was $58 million versus $34 million for the same period a year ago. Light Vehicle Systems sales were up 3%, but the operating margin fell slightly, from 6.6% to 6%. Light Vehicle Aftermarket sales were down 4% from a year ago, but cost-reductions and improved pricing boosted the operating margin from 7.7% to 8.4%.