DOW JONES NEWSWIRES
ArvinMeritor Inc. (ARM) swung to a fiscal second-quarter loss as
revenue slumped amid the lower auto production volume in most of
its global equipment markets.
The auto-parts maker, which posted results that missed analysts'
estimates, also said it expected its per-share loss to be wider in
the third quarter, with revenue seen "about flat." Wall Street
projects a per-share loss of 43 cents on revenue of $1.48 billion
for the third quarter.
The industry has faced a sharp downturn in demand, leading to
cuts in production, jobs and dividends to stay afloat. Earlier this
month, ArvinMeritor said its efforts would save $430 million a
year, as it shed more jobs to bring its total job cuts to about
3,000 since October.
For the quarter ended March 31, the maker of integrated systems,
modules and components serving commercial truck and light vehicles
reported a loss of $47 million, or 65 cents a share, compared with
year-earlier earnings of $20 million, or 28 cents a share.
Excluding items, the company would have recorded a continuing
operations loss of 72 cents, compared with a year earlier profit of
33 cents.
Revenue slumped 38% to $1.11 billion as sales at ArvinMeritor's
commercial-vehicle business decreased 38% to $739 million.
Analysts polled by Thomson Reuters expected a per-share loss of
68 cents on revenue of $1.24 billion.
The company, saying its exposure to the Chrysler LLC bankruptcy
won't be material, noted it's had outstanding receivables from
Chrysler totaling $7 million as of April 29, with only $3 million
outside of administrative claim status.
Since February, all three major credit agencies have lowered
their credit ratings on ArvinMeritor into highly speculative
territory amid concerns about the company's liquidity and
deteriorating markets.
Shares were up 7.4% to $1.75 in after-hours trading, after
closing up 16% in the regular session. The company's stock has lost
about 90% of its value from its 52-week high in September.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com