ArvinMeritor has reported a loss from continuing operations of $261m or $3.76 per share for its fiscal fourth quarter ended 30 September, 2006.
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The company said this was primarily due to a $310m charge for goodwill related to the company’s light vehicle emissions technologies (ET) business.
Fourth-quarter income from continuing operations before special items was $28m, or $0.40 per diluted share. Fourth quarter sales were $2.3bn, up 7% year on year.
Before special items, operating income in the fourth quarter of fiscal year 2006 was $54m, down 19%, due to warranty costs, and higher pension and retiree medical costs.
Earnings per share from continuing operations, before special items, of $1.78 per share, for the full fiscal year 2006 were at the upper end of the component maker’s previous guidance range of $1.65 to $1.75.
Full year sales were $9.2bn, up $322m or 4% year on year.
Net debt reduced by $103m in the fourth quarter and by $501m during the full fiscal year.
ArvinMeritor chairman, CEO and president Chip McClure, said: “Despite significant production cuts at several of our largest light vehicle customers and the challenges of managing the record-setting volumes in our commercial vehicle business, we are pleased that we were able to meet guidance for our fourth quarter and achieve the upper range of our guidance for fiscal year 2006.”
The company’s fiscal year 2007 forecast for light vehicle production is 15.8m vehicles in North America, and 16.1m vehicles in Western Europe.
ArvinMeritor’s forecast for North American Class 8 truck production is 235,000 units in fiscal year 2007 (200,000 in the 2007 calendar year). The company has forecast heavy and medium truck volumes in western Europe at 419,000 units.
Sales from continuing operations in 2007 are expected to be in the range of $8.7 to $8.9bn, and the outlook for full-year earnings per share from continuing operations is in the range of $1.15 to $1.25.
In the first quarter of fiscal year 2007, the company expects a year-on-year production decrease of 7% on the company’s top 15 vehicle platforms.
