DOW JONES NEWSWIRES ArvinMeritor Inc. (ARM) swung to a fiscal second-quarter profit and joined the cohort of auto-parts makers beating expectations as sales surged with a recovering market. "We anticipate markets in Europe, South America and Asia Pacific to continue to strengthen, while the North American market may soften in the short term as a result of the emissions changeover and a lower demand for military products," Chairman and Chief Executive Chip McClure said. The company also forecast third-quarter sales in line with the latest period's $1.21 billion; analysts' average estimate was $1.09 billion, according to Thomson Reuters. Optimism about the auto industry's outlook has increased of late, after several parts makers beat analysts' expectations. Auto sales are expected to rise in North America this year as companies tap new markets in Asia. In February, Fitch Ratings boosted its ratings on ArvinMeritor and Moody's Investors Service lifted its outlook for the company. For the period ended March 31, the commercial- and light-vehicle parts maker posted a profit of $13 million, or 16 cents a share, compared with a year-earlier loss of $49 million, or 67 cents a share. Analysts polled by Thomson Reuters forecast a profit of 2 cents a share. Sales jumped 25% to $1.21 billion, beating the company's February upbeat estimate of $1.15 billion. Sales rose 31% at its commercial-vehicle systems business, its largest, and increased in every other business line except aftermarket and trailer parts, which posted a 4.8% decline. Shares closed Monday at $15.83 and were inactive premarket. The stock was below $1.50 a year earlier. -By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240, matthew.jarzemsky@dowjones.com
