"Several factors have had a significant impact on our financial performance in the current quarter, including the downturn in North American Class 8 vehicle production and in the global light vehicle aftermarket," said Larry Yost, chairman and chief executive officer of ArvinMeritor. "We have also been affected by the weakening euro, as well as by customer plant shutdowns."
In a proactive move during the month before the July 2000 merger between Arvin and Meritor, Meritor announced several restructuring actions designed to significantly reduce costs and improve operational efficiencies. Those actions are now in the process of being implemented and will have a positive impact on the new ArvinMeritor organization. In addition, ArvinMeritor expects to announce further cost-reduction initiatives by the end of the calendar year, including resource and asset rationalization, tax efficiencies and other synergies created by the merger.
"We have been relentless in our efforts to drive down fixed costs and create powerful operational and functional synergies wherever we can," Yost continued. "We have made tremendous progress in integrating the operations of Arvin and Meritor into one efficient organization. I am confident in our ability to create long-term value for our shareowners, as we continue to deliver quality products and superior service to our customers. Further, we are comfortable with the current consensus earnings per share of $3.85 for fiscal 2001."
In July of this year, in an ongoing effort to deliver long-term value to shareowners, ArvinMeritor authorized a stock repurchase program of up to $100 million. To date, ArvinMeritor has repurchased 2.7 million shares at a total cost of $47 million.
ArvinMeritor, Inc. is a premier $7.5-billion global supplier of a broad range of integrated systems, modules and components to the transportation industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets. In addition, ArvinMeritor is a leader in coil coating applications, including those for the transportation, appliance, construction and furniture industries. The company is headquartered in Troy, Mich., and employs 36,500 people at more than 120 facilities in 25 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: www.arvinmeritor.com .