Meritor Inc. posted lower net income in its fiscal-year second quarter related to tax issues as revenue dipped.
Net income dropped 28% to $23 million, or 24 cents per share, compared with $32 million, or 35 cents, year-over-year. Lower net income year-over-year was driven primarily by higher income tax expense recognized in the current year, the Troy, Mich.-based company said.
Revenue slipped 2% to $806 million, compared with $821 million a year earlier.
The decline in revenue was driven primarily by lower commercial truck volume in North America, as Class 8 truck production was down 20% year-over-year. This was largely offset by increased production in Europe, India and China, in addition to new business wins.
"This was another strong quarter for Meritor," said CEO Jay Craig. "Continued operational performance, combined with signs of improvement in global end markets, gives us confidence that our 2017 financial performance will be better than previously planned."
Meritor's aftermarket and trailer segment posted sales of $215 million, down $3 million from the same period a year ago. The decrease in sales was primarily due to lower U.S. trailer production, which was partially offset by higher aftermarket revenue, according to the company.
Meritor supplies drivetrain systems and components including axles, drivelines, braking and suspension systems for medium- and heavy-duty trucks. Its North American joint venture with Wabco Holdings Inc. offers braking systems and controls, active safety systems, and suspension and control systems for commercial vehicles.