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1/30/2013 10:10:00 AM Write a Letter to the Editor Write a letter to the Editor

Meritor Reports Fiscal 1Q Loss

Jay Craig to Head Commercial-Truck Unit

Meritor Inc. reported a loss for its fiscal first quarter, citing weaker conditions outside of North America.

Meritor also announced it appointed Jay Craig president of the commercial truck unit. Craig has been Meritor’s chief financial officer. Replacing him as CFO will be Kevin Nowlan, the company’s controller.

The trucking component maker said Wednesday it lost $21 million, or 22 cents per share, compared with a net loss of $22 million, or 23 cents, a year earlier.

Revenue for the quarter ended Dec. 31 fell 23% to $891 million, “primarily due to lower sales in all global markets,” Meritor said in a statement.

Adjusted earnings before interest, taxes, depreciation and amortization were $46 million, down from $79 million a year earlier.

EBITDA at its commercial truck and industrial unit fell to $34 million from $61 million, while sales declined to $715 million from $975 million.

EBITDA at its aftermarket and trailer segment fell to $13 million from $17 million, with sales down to $203 million from $218 million.

Meritor said earlier this month that it expects to take a charge of $15 million to $25 million and eliminate about 200 salaried employees to cut costs, and that it would give details on those actions at a Feb. 5 meeting with investors.

“In response to  changing conditions and the impact of reduced military spending, we have taken aggressive actions targeted at variable labor and structural cost reductions which we expect to drive improving margins in the coming quarters,” Chairman and CEO Chip McClure said in a statement.

By Transport Topics

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