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