Supplier Meritor Meritor boosted third quarter net income to US$17m from a loss of $3m on sales up 33% to $1.287bn.
Adjusted EBITDA was up 55% to $102m thanks to high demand for trucks and cost cutting, chairman, CEO and president Chip McClure said. “Our solid performance this period resulted in an adjusted EBITDA margin of 7.9%, an increase of 110 basis points compared to the prior year.”
Operating income was $23m or $0.24 per share compared to a loss of $6m.
Adjusted income from continuing operations in the third quarter of fiscal year 2011 was $25 million, or $0.26 per diluted share, compared to negative $6 million, or $0.06 per diluted share, a year ago. The Q3 2011 result excluded $7m of restructuring costs and a $5m non-operating gain on the collection of a note receivable.
Meritor predicted Q4 revenue in the range of $1,175m to $1,275m, adjusted EBITDA of $90m to $100m, and adjusted operating profit of $15m to $25m.
“We will continue to take the appropriate steps to manage the challenges associated with commercial truck volumes that are expected to be strong in all major markets,” added McClure.
“With a diligent focus on cost management and execution, we remain confident that we will achieve our EBITDA margin target of 10% by the end of fiscal year 2012.”