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July 31, 2013 10:10 AM, EDT
Meritor Reports Fiscal Third-Quarter Loss

Meritor Inc. reported a loss for its fiscal third quarter and completed the sale of its 50% stake in a Brazilian company, the truck component maker said Wednesday.

The company lost $37 million, or 38 cents a share, compared with net income of $50 million, or 51 cents, a year ago. Sales for the quarter ended June 30 fell 11% to $993 million.

Meritor said its commercial truck and industrial unit’s earnings before interest, taxes, depreciation and amortization fell 5.6% to $67 million. Sales fell 13% to $784 million.

Meritor named Ivor “Ike” Evans chairman and interim CEO in May, and began a search for a new CEO, after removing former chairman and CEO Chip McClure from those positions after nine years with the company.

Meritor also said it completed the sale of its 50% ownership interest in Suspensys Sistemas Automotivos Ltda to joint-venture partner Randon S.A. Implementos e Participacoes for $195 million.

The company adjusted its full fiscal-year guidance, projecting its revenue from continuing operations at $3.72 billion to $3.77 billion, from a previous forecast of $3.8 billion.

Adjusted earnings per share for the year will be 30 to 35 cents, from a previous 25 to 35 cents, Meritor said.