ArvinMeritor is getting ready for a recovery in the US commercial truck market that could boost profitability in the second half of the year after shifting away from auto to commerical truck parts.
“The sale of large trucks in the U.S. has been down for almost four years now and some of those are looking long in the tooth,” chief executive Chip McClure told Dow Jones. “If the economy picks up we will see a pickup in truck purchases.”
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Separately, McClure said he still planned to wind down the automotive chassis business and was in talks to sell the body unit, which includes making window regulators and electronics for car doors.
For the quarter ended 31 December, the maker of commercial- and light-vehicle parts posted breakeven results, compared with a prior-year loss of US$961m, or $13.29 a share, which included $856m in write-downs. Revenue declined 6.1% to $1.15bn.
McClure said the Brazil, India and China commercial truck markets were already coming back thanks to government policies and tax incentives.
Analysts polled by Thomson Reuters had expected a 7 cent loss on revenue of $1.06bn.
The supplier also said it expected Q2 revenue to be flat sequentially or $1.15bn. The analysts expected $1.05bn.
The industry’s outlook has improved in recent months amid expectations that sales will improve in North America and Europe this year, Dow Jones said.
Sales at ArvinMeritor’s commercial vehicle systems business – its largest – fell 27% as the unit swung to a small profit. Sales also fell at the aftermarket and trailer business but rose for industrial and light vehicle systems.
About half of the company’s sales are in North America, and a third are in Europe.
