DOW JONES NEWSWIRES
ArvinMeritor Inc. (ARM) posted a narrower-than-expected fiscal
fourth-quarter loss as cost cuts helped offset weak auto-production
volume.
The company, whose revenue results also topped estimates, named
Carsten Reinhardt to fill the vacant chief operating officer's
post. Reinhardt, president of ArvinMeritor's commercial vehicle
systems business since joining the company in 2006, is a former
chief executive of Daimler AG's (DAI) Detroit Diesel Corp.
Shares rose 1.3% premarket to $8.80. The stock has more than
tripled this year.
ArvinMeritor's results and expectations for further sequential
growth in the current quarter illustrate the company's efforts to
simplify operations and manage working capital amid weak demand are
gaining traction. Streamlining moves have included selling its
stake in its suspension-systems joint venture two weeks ago and its
wheel-manufacturing unit in September.
Tuesday, the company said it will continue to focus on "rigorous
cost management" in its new fiscal year following $195 million of
savings in its core operations the past year.
For the quarter ended Sept. 30, the maker of commercial- and
light-vehicle parts narrowed its loss to $12 million, or 17 cents a
share, from $153 million, or $2.12 a share a year earlier.
Excluding restructuring and other charges, ArvinMeritor had a
loss from continuing operations of 28 cents, compared with a
prior-year profit of 35 cents. The company attributed the worse
performance to the inability to recognize the tax benefit of losses
in certain countries. Revenue plunged 36% to $984 million,
reflecting weak production volume, but rose 4% from the prior
quarter.
ArvinMeritor's August prediction was for a wider loss from
continuing operations than the fiscal third quarter's 39 cents and
"slightly lower" sequential revenue.
Gross margin fell to 8.4% from 9.3% amid the sales woes.
Sales at its commercial-vehicle systems business--its largest by
far--plunged 53% as the unit swung to a loss.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com