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November 15, 2012 12:00 PM, EST
Meritor’s 4Q Profit Falls; Plans to Cut 800 Jobs

Truck component maker Meritor Inc. said its fiscal fourth-quarter earnings declined from a year ago and that it will cut its global workforce by about 800 jobs due to weaker U.S. and international markets.

Net income for the quarter ended Sept. 30 fell to $5 million, or 5 cents a share, from $31 million, or 32 cents a share, a year earlier.

Sales dropped 19% from a year ago to $986 million, while sales for its commercial truck segment fell to $583 million from $768 million.

Industrial segment sales decreased to $222 million, from $269 million a year ago, and aftermarket and trailer sales fell to $248 million from $274 million.

Earnings for its full fiscal year fell to $52 million, or 54 cents per share, from $63 million, or 65 cents, in 2011. Sales fell 4% to $4.4 billion.

CEO Chip McClure said in a Nov. 14 conference call that fiscal 2012 was “a challenging year” due to weakened markets in the second half caused by global economic slowdown in its sector.

Meritor said it expects fiscal 2013 revenue from continuing operations to be about $4 billion.