Meritor booked net income of US$49m for its third fiscal quarter to 30 June, 2012, up from $17m in Q3 2011.
Sales fell 13% to $1.11bn and adjusted EBITDA was down 11% to $92m as EBITDA margin rose to 8.3% from 8.1%.
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“We are pleased with the company’s performance in the third fiscal quarter,” said chairman, CEO and president Chip McClure. “Despite lower sales volumes driven by weaker market conditions in Brazil, Europe, China and India, we expanded adjusted EBITDA margins and generated strong cash flow.”
Operating profit was $50m or $0.51 per share, compared with $27m or $0.28 per share the previous year and due mostly to lower taxes.
Commercial truck sales were $690m, down $80m year on year, as higher sales in North America were more than offset by decreases in Brazil and Europe and adverse currency effects.
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By GlobalDataRevised full year expectations are:
- Revenue to be approximately $4.4bn to $4.5bn (previously approximately $4.8bn).
- Adjusted EBITDA margin in the range of 7.6% to 8.0% (previously 8.2% to 8.6%).
- Adjusted income from continuing operations in the range of $85m to $110m (previously $105m to $135m).
- Adjusted earnings per share in the range of $0.90 to $1.15 (previously $1.08 to $1.39).
- Capital expenditures in the range of $90m to $100m (previously $100m to $110m).20m.
“We expect continuing global weakness in our major end markets to impact full-year revenue expectations,” added McClure. “As we carefully monitor the global markets, we remain very focused on executing margin-preservation actions in the fourth quarter.”
