TROY, Mich., July 2 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc. (NYSE:
ARM) today provided additional details about its expectations for stronger
financial results in the third fiscal quarter and full fiscal year.
Third Fiscal Quarter
Despite weaker than anticipated industry conditions in North America,
the company expects sales for the third quarter of approximately $2
billion, up 20 percent from the third quarter of 2007. This growth in sales
is due primarily to stronger industry conditions and market share in South
America and Asia Pacific; a favorable light vehicle platform mix in Europe;
and increased specialty sales, including military products in North America
and off-highway products in China.
The company expects operating earnings and margins for the quarter to
follow normal seasonal patterns when compared to prior quarters, with an
additional benefit from increased sales. "Our strategy to refocus,
restructure and regenerate the business continues to show results," said
Chip McClure, chairman, CEO and president of ArvinMeritor. "Our balanced
geographical footprint and product mix is offsetting the weak market we're
experiencing in North America."
In addition to higher sales and operating improvements, the company
also will benefit from a lower tax rate in the third fiscal quarter.
Previous tax rate guidance reflected an abnormally high rate for the first
half of the fiscal year, followed by a low rate for the second half.
Inherent in this guidance was an expected one-time benefit of $15 million
to $19 million in continuing operations for the second half of the year due
to the resolution of certain prior-year tax matters. The company now
anticipates this benefit to be realized entirely in the third quarter.
Full Fiscal Year
For the full fiscal year, the company now anticipates earnings at the
high end of its previous guidance range of $1.40 to $1.60 per diluted share
from continuing operations, before special items due to increased sales.
For the 2008 calendar year, the company anticipates light vehicle
industry sales in North America to be in the range of 14.4 million to 14.6
million units, down from the previously forecasted estimate of 15.2
million. The company does not expect this change in forecast to affect its
plan to spin off its Light Vehicle Systems (LVS) business, given that less
than 20 percent of the company's light vehicle sales are to the domestic
three manufacturers in North America.
The company's expectation for Class 8 production in North America for
the 2008 calendar year is a range of 195,000 to 205,000 units, down from
the previous range of 220,000 to 240,000. The company expects higher
production in 2009, although the anticipated pre-buy related to the 2010
emissions change is likely to be significantly smaller than originally
believed. In Western Europe, the company's expectation for medium- and
heavy-duty truck production is 550,000 to 560,000 units for 2008, down from
the previous range of 580,000 to 590,000 units.
"In spite of the volume decline in Europe and continued depressed sales
and production forecasts in North America, our team has worked diligently
to make operational improvements across the business," said McClure.
About ArvinMeritor
Today, 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 19,000 people in 24 countries. ArvinMeritor common stock is
traded on the New York Stock Exchange under the ticker symbol ARM. For more
information, and high resolution photography, 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.
There are risks and uncertainties relating to the planned spin-off of
ArvinMeritor's LVS business, including the timing and certainty of
completion of the transition. In addition, 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 sharply rising 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 from time to
time in 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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO )
SOURCE ArvinMeritor, Inc.
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Related links:
http://www.arvinmeritor.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/762401.html/
CONTACT:
Media, Krista McClure, +1-248-435-7115,
krista.mcclure@arvinmeritor.com, or Investors, Terry Huch,
+1-248-435-9426, terry.huch@arvinmeritor.com
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