ArvinMeritor Inc. (ARM) swung to a fiscal fourth-quarter profit
on a pension gain as the auto-parts maker's sales jumped and
margins improved, and as it was helped by a $7 million gain from
pension curtailment.
The producer of parts for commercial vehicles has seen positive
volume trends of late in Europe and North America as the automotive
market has improved. Results suffered last year when vehicle
production was slashed because of slack demand.
For the quarter ended Sept. 30, ArvinMeritor reported a profit
of $2 million, or 2 cents a share, compared with a year-earlier
loss of $14 million, or 20 cents a share. There were 33% more
shares outstanding in the most recent quarter. The most recent
quarter included an nearly $7 million gain related to the
curtailment of the company's U.K. pension plan.
Revenue jumped 37% to $956 million.
Analysts polled by Thomson Reuters forecast a loss of 2 cents a
share on revenue of $943 million.
Gross margin rose to 12.1% from 10%.
Sales at its ArvinMeritor's commercial-truck business, its
biggest, rose 68%, while aftermarket and trailer sales climbed
15%.
Shares closed at $17.41 Monday and were inactive premarket. The
stock has risen 56% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com