ArvinMeritor Takes 4Q Loss, Will Sell Auto-Parts Unit

Components supplier ArvinMeritor said its fourth-quarter loss widened and that it plans to sell its automobile parts unit.

ArvinMeritor lost $132 million, or $2.12 a share, for its fiscal quarter ended Sept. 30, compared with a loss of $62 million, or 86 cents, a year ago.

Sales for the quarter ended Sept. 30 rose 8% to $1.72 billion, the company said in a statement.

The fourth-quarter results included a $183 million tax charge and the company had said last month it was considering selling the auto-parts unit and that it would shed 1,250 jobs, about 7% of its work force.

“Declining global market and credit conditions are the primary factors that have led us to expand our options for separating the [light vehicle systems] business group, excluding the wheels business located in South America and Mexico,” said Chief Executive Officer Chip McClure.

“After a comprehensive review of those options, we have determined that a sale will be our primary focus,” he said in a statement.

For its full fiscal year, ArvinMeritor lost $101 million, or $1.40 per share, down from a loss of $219 million, or $3.11, a year ago.

Class 8 truck production will be in the range of 200,000 to 220,000 units next year, about the same as 2008, the company projected. Its forecast for heavy- and medium-duty truck volumes in Western Europe is 400,000 to 450,000 units, down about 25% from fiscal 2008.

Its sales for fiscal year 2009 will be $4.9 billion to $5.2 billion, ArvinMeritor said, adding that it expects earnings per share, excluding special items, to be 80 cents to $1.