Stronger truck demand drove sales and income higher for Meritor in its second fiscal quarter ended March 31, 2011.


Sales were $1.2 billion, up $324 million or 37 percent, from the same period last year. This increase in sales was primarily due to stronger truck demand in the Americas and Europe. Compared to the first quarter of fiscal year 2011, sales in the second quarter were up 23 percent.

Net income on a GAAP basis was $17 million compared to $13 million in the prior year's second quarter. Adjusted EBITDA was $81 million, up $20 million or 33 percent, from the same period last year.

"Continued improvement of commercial truck sales in all regions drove a 33-percent increase in Adjusted EBITDA year-over-year," said Chairman, CEO and President Chip McClure. "While our team worked hard this quarter to capitalize on significantly higher volumes, rising steel costs, as well as launch costs related to the Caiman defense program, impacted our ability to fully benefit from increased revenue this quarter."

The favorable impact of higher sales volumes this quarter was partially offset by rising steel costs and launch costs for the Caiman defense program.

Commercial truck sales were $693 million, up $235 million from the same period last year. Adjusted EBITDA for the Commercial Truck segment was $40 million for the quarter, up $25 million or 167 percent, from the second quarter of fiscal year 2010, primarily driven by increased sales from North America, with continued strengthening in Europe and record high volumes in South America.

The Aftermarket & Trailer segment posted sales of $272 million, up $34 million from the same period last year. Adjusted EBITDA for Aftermarket & Trailer was $28 million, up $11 million or 65 percent from the second quarter of fiscal year 2010, driven primarily by the favorable impact of higher sales for the company's core aftermarket replacement and trailer products. These increases were partially offset by lower sales of Meritor's military service parts.