USA: Higher costs hit ArvinMeritor Q4 earnings - report
Reuters reported that parts maker ArvinMeritor said on Tuesday its fiscal fourth-quarter earnings will be affected by higher than expected costs for new product launches and steel-related interruptions in its light vehicle systems business.
According to the news agency, ArvinMeritor said it expects earnings for the fiscal fourth-quarter ending September 30 of 48 cents to 51 US cents a share, before the effects of a change in accounting principle.
The company said its outlook includes a net fourth-quarter after-tax gain of $13 million, or 19 cents a share, from an asset sale, as well as $5 million, or 7 cents a share, of expenses from a previously announced restructuring in the light vehicle systems business, Reuters added.
For the first quarter of fiscal 2004, ArvinMeritor estimated sales of $2.0 billion and earnings of 25 cents to 30 cents a share and, for fiscal 2004, it forecast earnings at $2.20 to $2.40 a share, the Reuters report said.