Meritor Reports Fiscal 2Q Loss
Meritor Inc. reported a loss for its second fiscal quarter, and the truck component maker said it plans to sell 50% of a joint venture in Brazil.
The company lost $4 million, or 4 cents a share, compared with net income of $20 million, or 20 cents, a year ago. Sales for the fiscal quarter ended March 31 fell 21.7% to $908 million.
Meritor said its commercial truck and industrial unit’s earnings before interest, taxes, depreciation and amortization fell 50% to $37 million, “primarily driven by lower sales in all regions, excluding South America.” Unit sales fell 28% to $712 million.
Its operating loss was $4 million, or 4 cents a share, compared with operating income of $29 million, or 30 cents, a year ago. The loss included $11 million in restructuring charges.
Adjusted operating income was $6 million, or 6 cents a share, down from $32 million, or 33 cents, a year ago.
Meritor said it signed an agreement to sell 50% of its ownership interest in Suspensys Sistemas Automotivos LTDA to joint-venture partner Randon S.A. Implementos e Participacoes for $195 million.
The company said it expects that agreement, which is subject to Brazilian antitrust approval, to be completed by the end of its fiscal year.
Meritor reaffirmed its full fiscal-year guidance, with revenue from continuing operations at about $3.8 billion, an adjusted EBITDA margin of about 7% and adjusted earnings of 25 cents to 35 cents per share.
