US-based supplier Arvin Meritor expects third quarter sales to rise 20% to about US$2bn, though though this will be due mainly to sales outside North America.
Go deeper with GlobalData
“This growth in sales is due primarily to stronger industry conditions and market share in South America and Asia Pacific, a favourable light vehicle platform mix in Europe and increased speciality sales, including military products in North America and off-highway products in China,” the supplier said in a statement on Wednesday.
The company expects operating earnings and margins for the quarter to follow normal seasonal patterns when compared to previous quarters, with an additional benefit from increased sales.
“Our strategy to refocus, restructure and regenerate the business continues to show results,” said CEO Chip McClure. “Our balanced geographical footprint and product mix is offsetting the weak market we’re experiencing in North America.”
For the full fiscal year, the company now anticipates earnings at the high end of its previous guidance range of US$1.40 to $1.60 per share from continuing operations, before special items due to increased sales.
For the 2008 calendar year, the company anticipates light vehicle industry sales in North America to be in the range of 14.4 to 14.6m units, down from the previously forecast estimate of 15.2m.
Arvin Meritor does not expect this change in forecast to affect its plan to spin off its Light Vehicle Systems (LVS) business, given that less than 20% of the company’s light vehicle sales are to the domestic three manufacturers in North America.
