Commercial vehicle supplier Meritor Inc. reported net income and revenue rose in its fiscal third quarter, driven by broad increases in truck production plus new business wins.
Net income for the period ended June 30 rose 17% to $48 million, or 51 cents per diluted share, compared with $41 million, or 45 cents per share, in the same period last year.
Revenue was $920 million, up $79 million, about 9%, from the 2016 period — primarily driven by increased production in North America, Europe and China and new business wins, according to the Troy, Mich.-based company.
“Revenue of $920 million was 10% above our estimate of $840 million and 9% above the consensus outlook of $842 million,” analyst Michael Baudendistal with Stifel, Nicolaus and Co. wrote in a note to investors.
“Strengthening end markets, new business wins and continued excellent execution from our employees around the world drove our financial results this quarter,” Meritor CEO Jay Craig said in a statement.
Commercial truck and industrial sales were $728 million, up $88 million compared with the same period last year amid higher Class 8 truck production in North America, increased production in Europe and China and new business wins.
The aftermarket and trailer segment posted sales of $228 million, up slightly from the same period a year ago, the company reported.
Meritor reported it expects fiscal year 2017 revenue to be about $3.25 billion, with earnings per share of $1.20.