ArvinMeritor Inc., Troy, Mich., reported sales of $2.2 billion and net income of $19 million for its first fiscal quarter ended Dec. 31, 2003, compared to a net income of $32 million the same quarter last year.

Results for the first quarter of fiscal year 2004 include a net charge of $0.09 per diluted share as a result of the company's decision to withdraw its tender offer to acquire all of the outstanding shares of Dana Corp. This charge includes $16 million of pre-tax costs, partially offset by a pre-tax gain of $7 million on the sale of Dana stock owned by the company.
Sales increased $471 million, or 28%, as compared to the prior year's first quarter. A stronger euro favorably impacted sales by about $135 million, and the company's acquisition of Zeuna Starker added sales of $203 million in the first fiscal quarter. Sales would have been up approximately 8% without these items -- primarily as a result of strong North American Class 8 truck volumes.
ArvinMeritor Chairman and Chief Executive Officer Larry Yost said, "We are pleased to see the strengthening of our commercial vehicle markets, and look forward to benefiting from the continued recovery of the North American Class 8 truck market as the year progresses. Although our light vehicle and aftermarket businesses fell short of our financial targets, we expect to see improvements throughout the year, as we realize our efforts to reduce costs and improve operating performance."
Operating income for the first quarter of fiscal year 2004 was $49 million, which included $16 million of costs related to the withdrawn tender offer for Dana.