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US: ArvinMeritor posts Q3 loss

By just-auto.com editorial team | 30 July 2007

ArvinMeritor posted a $US4m net loss for its fiscal third quarter ended 30 June.

Sales of $US1.7bn were 4% lower year on year due mainly to the downturn in the North American Class 8 heavy truck market, partially offset by strong western Europe and Asia Pacific volumes.

Operating income in the third quarter of 2007, before special items, was $45m, down 31%.

The company said that year-on-year margins improved in its light vehicle systems (LVS) business while commercial vehicle systems (CVS) was profitable "in the trough of the North American Class 8 downturn".

It has revised its fiscal year earnings per share guidance, before special items, to $0.75 to $0.80 from $0.70 to $0.80.

"As we continue to work our way through a challenging operating environment, we are making solid progress in implementing our strategic initiatives," said chairman, CEO and president Chip McClure.

ArvinMeritor expects restructuring and cost reductions resulting from its 'performance plus' initiatives to generate $150m in savings by 2009 and said it remains on track to achieve that goal.