ArvinMeritor Reports Fiscal 1Q Loss

Truck components maker ArvinMeritor said Wednesday its fiscal first-quarter loss from continuing operations was $991 million, or $13.71 per share, compared with a loss of $1 million, or 1 cent, a year ago.

Sales for the quarter ended Sept. 30 fell 18% to $1.4 billion, the company said in a statement.

The company said it has initiated a series of cost-cutting measures including workforce reductions of more than 1,500 employees and extended shutdowns and reduced work weeks at all of its plants.

ArvinMeritor said it has set a 10% -percent salary reduction for all of its U.S. executive employees and a 5% reduction in salary for all other U.S. salaried employees, in addition to similar actions in other parts of the world.

It has also eliminated its matching contribution to U.S. workers’ 401(k) voluntary retirement plans.

The company said it was not ready to sell its automobile, or light vehicle systems unit. “As previously announced, economic conditions do not support the company's strategy to divest the entire LVS business at this time,” it said in a statement.