ArvinMeritor Reports 3Q Loss; Will Sell Wheels Business
Truck components maker ArvinMeritor said Tuesday it lost $162 million, or $2.23 per share, in its fiscal third quarter, compared with a profit of $44 million, or 60 cents per share, a year ago.
Sales for the quarter ended June 30 fell about 47% to $993 million, the company said in a statement.
Commercial vehicle sales were $683 million, down 49% from a year ago.
ArvinMeritor also said it would sell its wheel business to Iochpe-Maxion, S.A., a Brazilian manufacturer of wheels and frames for commercial vehicles. It said it plans to close the $180 million sale by Sept 23.
The manufacturer announced in the third quarter its divesture from chassis systems businesses. It has sold or plans to sell its interest in three different chassis companies.
ArvinMeritor said it expects its fiscal fourth-quarter revenue to be slightly lower, due largely to seasonal patterns. Its loss per share will be greater and its free cash flow will be negative, the company said.
