Meritor Reports 2Q Results in Busy Week
Parts supplier Meritor Inc. had a busy week, attending the Advanced Clean Transportation Expo in Long Beach, Calif., releasing quarterly results, buying a manufacturing company and announcing a collaboration with major truck manufacturer Peterbilt.
On May 3, Meritor reported adjusted income from continuing operations of $68 million, or 75 cents per adjusted share, for its second fiscal quarter ending March 31. That compares with $32 million, or 24 cents per share in the same period a year ago. Sales rose $260 million, or about 32%, to $1.1 billion.
Troy, Mich.-based Meritor attributed the gains to new business wins and favorable foreign currency numbers.
Meritor Inc. CEO Jay Craig by Roger Gilroy/Transport Topics
Meritor modified in March its reportable segments to commercial truck and trailer, and aftermarket and industrial. The commercial truck group had sales in the quarter of $854 million, a rise of 38% from $618 million. The aftermarket group reported sales rose $30 million to $256 million, driven by higher sales in its industrial business.
At ACT Expo, Meritor CEO Jay Craig gave the keynote address, urging attendees to invest in new technology as the commercial vehicle industry expands its use of engines powered by electricity and alternative fuels.
Meritor backed up Craig’s speech May 1, reporting it would supply all-electric drivetrain systems for two Peterbilt vehicle platforms through an alliance with TransPower. The project includes 12 Peterbilt all-electric Class 8 Model 579 day cab tractors and three Model 520 refuse trucks. The shorthaul Peterbilt 579 drayage trucks will be deployed at ports in Los Angeles, Long Beach, Oakland and San Diego. The refuse trucks will be tested by Sacramento County and a waste hauler.
Meritor will supply axles, drivelines and brakes on the project, while TransPower will supply electric drivetrain power and control systems and batteries and accessories. Meritor has a strategic investment in TransPower.
Meritor announced April 30 it had purchased AA Gear & Manufacturing and its subsidiaries. Howell, Mich.-based AAG is a provider of low- to medium-volume batch manufacturing for complex gear and shaft applications. It serves the agriculture, construction and heavy-truck industries.
“The addition of AAG will provide our components business with increased technical capabilities that will enable Meritor to offer new products and applications,” said Kevin Nowlan, president of trailer components.
Meritor is a supplier of drivetrain, mobility, braking and aftermarket products to commercial vehicle and industrial markets.