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14th
November 2007 - ArvinMeritor
Reports Fiscal Year 2007 and Fourth-Quarter Results
ArvinMeritor today reported financial
results for its full fiscal year and fourth quarter ended Sept. 30,
2007.
Fiscal Year 2007 Highlights
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Sales from continuing operations for fiscal year 2007
were $6.4 billion, up $34 million, compared to fiscal year 2006 |
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On a GAAP basis, net loss from continuing operations
was $30 million, or $0.43 per diluted share |
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Earnings per share from continuing operations for
fiscal 2007, before special items, were $0.53 per diluted share |
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Net debt was reduced by $146 million during the
fiscal year despite negative free cash flow of $113 million |
Fourth-Quarter Highlights
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Fourth-quarter sales were $1.6 billion, flat from the
same period last year |
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On a GAAP basis, net loss from continuing operations
was $23 million, or $0.32 per diluted share |
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Fourth-quarter loss from continuing operations,
before special items, was $4 million, or $0.06 per diluted share |
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Free cash flow of $178 million, and a $215 million
reduction in net debt, for the fourth quarter of fiscal year 2007 |
"Despite the solid progress we are making
in implementing our strategic initiatives, our results this quarter were
negatively impacted by weaker than anticipated North American truck
production and the continuing capacity challenges in our European truck
operations," said Chairman, CEO and President Chip McClure. "Going
forward, we believe European capacity issues will be less severe due to
actions we are taking to implement lean manufacturing improvements and
bring new suppliers into the pipeline.
"Following this period of extended
softness in the North American truck market, we expect to see a rebound
as the industry gradually returns in 2008. In Europe, we look forward to
continued strong sales volumes, and in Asia and South America, we expect
volumes to grow significantly."
Fourth-Quarter Results 2007
For the fourth quarter of fiscal year
2007, ArvinMeritor posted sales of $1.6 billion, flat over the same
period last year. Sales reflect the continued downturn in Class 8 North
American truck sales offset by stronger volumes in other regions.
Operating income in the fourth quarter of
2007, before special items, was $8 million, compared to operating
income, before special items, of $56 million in the prior year's fourth
quarter.
Loss from continuing operations during
the fourth quarter of fiscal year 2007, before special items, was $4
million, or $0.06 per diluted share, compared to income from continuing
operations, before special items, of $29 million, or $0.41 per diluted
share, a year ago. Fourth-quarter results reflect reduced North American
volumes and significant premium costs associated with record European
volumes.
Special items included costs associated
with supplier reorganizations, restructuring expenses and certain
non-recurring tax charges. Combined, these items accounted for
approximately $0.26 per share of additional expense in the fourth
quarter.
For the fourth quarter of 2007,
ArvinMeritor reported positive free cash flow of $178 million.
Fourth-Quarter Accomplishments
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Sourced as the supplier on the majority of the Mine
Resistant Ambush Protected (MRAP) vehicles awarded thus far, with
additional potential upside as new awards are announced |
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Entered into arrangement with Chery Motors in China
that the company expects will ramp up to anticipated sales of $150
million annually by 2010 |
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Announced closure of four additional manufacturing
facilities in North America, as part of previously announced
restructuring actions |
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Awarded new business to supply more than four million
window regulator motors annually to Hyundai Motor Company worldwide |
Outlook for 2008
The company's fiscal year 2008 forecast
for light vehicle sales is 16 million vehicles in North America and 17
million vehicles in Western Europe. The company's light vehicle outlook
is now based on expected sales volume, rather than production forecasts,
as in the past.
ArvinMeritor's forecast for North
American Class 8 truck production is in the range of 210,000 to 230,000
units in fiscal year 2008. The forecast for heavy and medium truck
volumes in Western Europe is in the range of 530,000 to 540,000 units.
ArvinMeritor's 2008 sales are expected to
be in the range of $6.8 billion to $7.0 billion, and full-year diluted
earnings per share are expected to be in the range of $1.40 to $1.60.
This guidance excludes gains or losses on divestitures, restructuring
costs, and other special items, including any extended customer
shutdowns or production interruptions.
"We are encouraged by our prospects for
2008," said McClure. "We anticipate that our Performance Plus
initiatives, combined with the aggressive internal programs we have
implemented to drive cost reductions, will help to mitigate the soft
market conditions in the first half of fiscal year 2008. We are on track
to generate $75 million in cost savings in 2008 and $150 million in
annual cost savings by 2009."
About ArvinMeritor
ArvinMeritor, Inc. is a premier global
supplier of a broad range of integrated systems, modules and components
to the motor vehicle industry. The company serves commercial truck,
trailer and specialty original equipment manufacturers and certain
aftermarkets, and light vehicle manufacturers. Headquartered in Troy,
Mich., ArvinMeritor employs approximately 18,000 people in 23 countries.
ArvinMeritor common stock is traded on the New York Stock Exchange under
the ticker symbol ARM. For more information, visit the company's Web
site at:
http://www.arvinmeritor.com/.
Source: ArvinMeritor Press
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