Meritor's sales declined, but earnings rose 18% for its fiscal quarter ended March 31.

Meritor reported revenue of $1.16 billion, although analysts had expected revenue of $1.19 billion on the same basis. GAAP reported sales were 2.7% lower than the prior-year quarter's $1.19 billion.


Sales were down $16 million or 1%, from the same period last year. The company's Commercial Truck segment and Aftermarket & Trailer segment sales were up in North America, offset by lower sales in South America, Europe and to a lesser extent in the company's Industrial segment, including Asia Pacific.

Meritor reported net income on a GAAP basis of $20 million, up from $17 million in the prior year's quarter.

Adjusted EBITDA was $95 million, up $13 million or 16% from last year's quarter. Adjusted EBITDA margin of 8.2%, compared to 7% in the same quarter last year.

Commercial Truck sales were $693 million, flat compared with the same period last year. Segment EBITDA for the Commercial Truck segment was $49 million for the quarter, up $9 million from the second quarter of fiscal year 2011, primarily driven by initiatives completed in the second quarter.

The company's Aftermarket & Trailer segment posted sales of $263 million, up $6 million from the same period last year, primarily due to sales gains in North America, partially offset by sales declines in Europe. Segment EBITDA for Aftermarket & Trailer was $28 million, down $1 million or 3 percent from the second quarter of fiscal year 2011, primarily due to lower earnings from the company's unconsolidated trailer joint venture in Brazil.

For fiscal year 2012, the company says it expects revenue to be approximately $4.8 billion, an adjusted EBITDA margin in the range of 8.2% to 8.6% and adjusted income from continuing operations in the range of $105 million to $135 million.