| ¤ |
First-quarter sales
were $1.1 billion, approximately a 16-percent increase from the
fourth quarter of fiscal year 2009; and down slightly from $1.2
billion in the first quarter of fiscal year 2009. |
| ¤ |
Net income on a
GAAP basis was breakeven compared to a GAAP loss of $961 million
in the same period last year. |
| ¤ |
Income from
continuing operations, before special items, was also breakeven
compared to a loss of $47 million in the first quarter of fiscal
year 2009. Loss from continuing operations on a GAAP basis for
the quarter was $2 million compared to a loss of $920 million in
the prior year’s quarter. |
| ¤ |
First-quarter
EBITDA from continuing operations, before special items, was $56
million, up $16 million compared to the fourth quarter of fiscal
year 2009, and up $40 million compared to the first quarter of
fiscal year 2009. |
| ¤ |
Cash flow from
operations was $27 million compared to a cash outflow from
operations of $338 million in the same period last year.
|
| ¤ |
Free cash flow
(cash flow from operations, net of capital expenditures) was $2
million in the first quarter compared to free cash outflow of
$386 million in the first quarter of fiscal year 2009.
|
“Our
financial results for the first quarter demonstrate that as we
experience growth in our global markets we are successfully retaining
the benefits of our previously executed cost reductions,” said Chip
McClure, chairman, CEO and president.
“This
quarter, we were able to convert on incremental revenue while
maintaining structural cost improvements and reinstating full salaries
to our employees. At the same time, we announced a nearly $10 million
planned investment in South America to support our expansion into new
product segments, and an additional planned investment of approximately
$10 million to increase production capacity at our off-highway axle
joint venture in Xuzhou, China. Both of these investments support the
strong growth we are experiencing in emerging markets,” said McClure.
First-Quarter
Fiscal Year 2010 Results
For the first
quarter of fiscal year 2010, ArvinMeritor posted sales from continuing
operations of $1.1 billion, an increase of 16 percent from the fourth
fiscal quarter of 2009, and a decrease of approximately six percent from
the same period last year.
EBITDA,
before special items, was $56 million, up 40 percent from the fourth
fiscal quarter of 2009. EBITDA, before special items, was $16 million in
the same period last year.
Loss from
continuing operations on a GAAP basis was $2 million for the first
quarter, or a loss of $0.03 per diluted share, compared to a loss from
continuing operations of $920 million, or a loss of $12.72 per diluted
share, in the same period last year. In the prior year, the company
recognized $856 million of non-cash asset impairment charges mostly
associated with establishing valuation reserves for certain deferred tax
assets and other asset impairments primarily for Light Vehicle Systems (LVS)
goodwill and fixed assets.
Income from
continuing operations, before special items, was breakeven compared to a
loss of $47 million, or $0.65 per diluted share, a year ago.
Free cash
flow was $2 million in the first quarter of fiscal year 2010 compared
with free cash outflow of $386 million in the same period last year. The
company’s first-quarter free cash flow reflects stable working capital
levels, improved earnings and represents the third consecutive quarter
of positive performance in this area.
The company
had $105 million in cash balances and unutilized commitments of $605
million under its revolving credit facility as of Dec. 31, 2009.
Light Vehicle
Systems
EBITDA for
the LVS segment was $6 million in the first quarter of fiscal year 2010
compared to negative $252 million in the same period last year. The
improved EBITDA performance is primarily due to significant cost
reductions associated with LVS overhead costs and improved financial
performance in the Body Systems business – which was recently awarded
several new customer contracts. In addition, the company recognized
non-cash asset impairments totaling $209 million in this segment in the
prior year.
Outlook
The company’s
financial guidance for the second quarter of fiscal year 2010 is for
expected results from continuing operations which includes all four of
ArvinMeritor’s current segments.
For the
second quarter of fiscal year 2010 (compared to the first fiscal quarter
of 2010), the company anticipates:
“We will
maintain an acute focus on becoming a leading commercial on- and
off-highway company in our defined segments by introducing new products
that meet our customers’ needs, entrenching ourselves in emerging
markets, and making investments that enable us to grow profitably,” said
McClure. “At the same time, we will be diligent in managing our costs.”
About
ArvinMeritor
ArvinMeritor,
Inc. is a premier global supplier of a broad range of integrated
systems, modules and components to original equipment manufacturers and
the aftermarket for the transportation and industrial sectors. The
company serves commercial truck, trailer and specialty original
equipment manufacturers and certain aftermarkets, and light vehicle
manufacturers. ArvinMeritor marked its centennial anniversary in 2009,
celebrating a long history of 'forward thinking.'
Source:
ArvinMeritor
Press Release