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Meritor Inc. reported lower fiscal fourth-quarter net income and revenue pointing to the COVID-19 pandemic’s effect on customer demand.
For the period ended Sept. 30, net income attributable to Meritor was $1 million, or 1 cent per diluted share, compared with $42 million, or 50 cents, a year earlier.
Revenue fell to $758 million compared with $1.02 billion in the 2019 period.
“While fiscal-year 2020 brought unforeseen headwinds, Meritor implemented cost containment actions early, bolstered our liquidity and maintained a strong balance sheet, which helped offset the financial impact of the pandemic and enabled us to continue making long-term investments,” Meritor CEO Jay Craig said in a release.
Commercial truck sales were $560 million in the fourth quarter of fiscal 2020, down 28% compared with the 2019 period.
Aftermarket and industrial sales were $226 million, down 22% compared with a year earlier. The decrease in sales was driven by lower volumes across the segment, according to the Troy, Mich.-based company. Aftermarket sales decreased due to lower customer demand and the impact from the termination of the distribution arrangement with Wabco Holdings Inc., which occurred in the second quarter of fiscal 2020.
For the full fiscal year, net income attributable to Meritor was $245 million, or $3.23, compared with $291 million, or $3.36, a year earlier.
Revenue in the 12-month period fell to $3 billion compared with $4.3 billion in the 2019 period. — Transport Topics
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