Also Reaffirms Full-Year Guidance of $1.40-$1.60 Per Diluted Share
TROY, Mich., March 18 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc.
(NYSE: ARM) announced today that operational improvements and Performance
Plus savings in the second quarter of fiscal year 2008 are overwhelming
adverse market conditions in North America.
As a result, the company expects to report quarterly results that are
significantly better than the first quarter of fiscal year 2008 and the
same period a year ago -- subject to any unusual events that may occur
prior to the closing of the quarter, such as an unfavorable resolution of a
current legal and commercial dispute with a light vehicle customer.
Specific factors driving the anticipated improvement in the second
quarter include cost reductions in direct material, overhead and labor and
burden; increased throughput in the company's European facilities resulting
from improved operational performance; higher sales of military and
off-highway vehicles and a lower tax rate. The company expects the
favorable second quarter results to be slightly offset by rising steel
prices.
ArvinMeritor also announced that through the end of February 2008, it
had implemented initiatives associated with its Performance Plus profit
improvement program that will reduce costs by $75 million per year on a
run- rate basis.
The company reiterated that it anticipates earnings from continuing
operations for fiscal year 2008 to be in the range of $1.40-$1.60 per
diluted share, before special items, and free cash flow to be in the range
of $75 million to $100 million outflow.
ArvinMeritor will release its second-quarter results for fiscal year
2008 on April 29, 2008.
About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of
integrated systems, modules and components to the motor vehicle industry.
The company serves commercial truck, trailer and specialty original
equipment manufacturers and certain aftermarkets, and light vehicle
manufacturers. Headquartered in Troy, Mich., ArvinMeritor employs
approximately 18,000 people in 24 countries. ArvinMeritor common stock is
traded on the New York Stock Exchange under the ticker symbol ARM. For more
information, visit the company's Web site at: http://www.arvinmeritor.com/
.
Forward-Looking Statements
This press release contains statements relating to future results of
the company (including certain projections and business trends) that are
"forward- looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are typically
identified by words or phrases such as "believe," "expect," "anticipate,"
"estimate," "should," "are likely to be," "will" and similar expressions.
Actual results may differ materially from those projected as a result of
certain risks and uncertainties, including but not limited to global
economic and market cycles and conditions; the demand for commercial,
specialty and light vehicles for which the company supplies products; risks
inherent in operating abroad (including foreign currency exchange rates and
potential disruption of production and supply due to terrorist attacks or
acts of aggression); availability and cost of raw materials, including
steel and oil; OEM program delays; demand for and market acceptance of new
and existing products; successful development of new products; reliance on
major OEM customers; labor relations of the company, its suppliers and
customers, including potential disruptions in supply of parts to our
facilities or demand for our products due to work stoppages; the financial
condition of the company's suppliers and customers, including potential
bankruptcies; possible adverse effects of any future suspension of normal
trade credit terms by our suppliers; potential difficulties competing with
companies that have avoided their existing contracts in bankruptcy and
reorganization proceedings; successful integration of acquired or merged
businesses; the ability to achieve the expected annual savings and
synergies from past and future business combinations and the ability to
achieve the expected benefits of restructuring actions; success and timing
of potential divestitures; potential impairment of long-lived assets,
including goodwill; potential adjustment of the value of deferred tax
assets; competitive product and pricing pressures; the amount of the
company's debt; the ability of the company to continue to comply with
covenants in its financing agreements; the ability of the company to access
capital markets; credit ratings of the company's debt; the outcome of
existing and any future legal proceedings, including any litigation with
respect to environmental or asbestos-related matters; the outcome of actual
and potential product liability and warranty and recall claims; rising
costs of pension and other post-retirement benefits and possible changes in
pension and other accounting rules; as well as other risks and
uncertainties, including but not limited to those detailed herein and from
time to time in other filings of the company with the SEC. These
forward-looking statements are made only as of the date hereof, and the
company undertakes no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise, except as otherwise required by law.
All earnings per share amounts are on a diluted basis. The company's
fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters
end on the Sundays nearest Dec. 31, March 31 and June 30. All year and
quarter references relate to the company's fiscal year and fiscal quarters,
unless otherwise stated.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO )
SOURCE ArvinMeritor, Inc.
 back to top
Related links:
http://www.arvinmeritor.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/762401.html /
CONTACT:
Krista McClure, +1-248-435-7115,
krista.mcclure@arvinmeritor.com; or Terry Huch, +1-248-435-9426,
terry.huch@arvinmeritor.com, both of ArvinMeritor, Inc.
|
