ArvinMeritor Inc. said it had record sales of $2.4 billion and net income of $53 million for its third fiscal quarter ended June 30, 2004,
compared to the prior fiscal year's third-quarter net income of $47 million.
Sales increased $279 million, or 13%, from the prior year's third quarter. On a constant currency basis, sales would have been up 10% on stronger North American commercial vehicle truck and trailer volumes and new business awards in the Light Vehicle Systems business. Net income in the quarter increased 13% from a year ago, despite higher raw material costs, primarily steel, of approximately $18 million, after tax.
Operating income for the quarter was $102 million, a 5% improvement compared to the same period last year.
ArvinMeritor Chairman and Chief Executive Officer Larry Yost said, "We are pleased to report a substantial improvement in sales and net income, compared to the same period last year. This improvement was driven by our Commercial Vehicle Systems business group, which continued to benefit from stronger North American Class 8 truck and trailer volumes."
Commercial Vehicle Systems sales were $862 million, up $217 million, or 34%, from last year's third quarter, primarily as a result of stronger North American commercial vehicle truck and trailer volumes. Excluding the effect of currency, sales would have been up approximately 32%.
Operating income was $53 million, $15 million higher than the same period last year, resulting in operating margins of 6.1%, up from 5.9% in the prior year. Operating margins increased, despite higher steel costs of approximately $10 million, investments in commercial vehicle exhaust technology and the consolidation of the transmission business after the dissolution of the transmission joint venture with ZF Friedrichshafen.