Bowes Promoted as Reinhardt Leaves Meritor; Manufacturer Lowers Quarterly Guidance

Truck component supplier Meritor Inc. rearranged its executive positions in the wake of the departure of Chief Operating Officer Carsten Reinhardt, who left the Troy, Mich., manufacturer last week.

Meritor selected Tim Bowes, most recently in the company’s Industrial division, as president of its largest division — Commercial Trucks — and said it would not immediately replace the COO position Reinhardt had held since November 2009.

In a separate announcement on July 21, Meritor also lowered its revenue and cash flow guidance for its fiscal third quarter ended June 30 from what it offered in early May, although it would still be an increase in revenue from the comparable quarter of last year.

Reinhardt came to what was then ArvinMeritor Inc. in September 2006 from the Detroit Diesel Corp. unit of Daimler Trucks North America. He could not be reached for comment by press time.

Meritor’s Industrial division manufactures military and specialty versions of the company’s other products. The unit is a supplier for applications such as off-highway, bus, motor coach, fire and emergency vehicles.

Meritor’s other major division is Aftermarket & Trailer, with Joe Mejaly serving as president.

Replacing Bowes as head of the Industrial division is Pedro Ferro, who returned to Meritor in May after a stint with Marmon Highway Technologies, a part of Warren Buffett’s Berkshire Hathaway Inc.

All three division presidents — Bowes, Mejaly and Ferro — will report to Meritor Chairman and CEO Charles “Chip” McClure Jr.

The Meritor statement said Bowes will oversee the company’s drivetrain systems and components, including axles, brakes, drivelines and suspension systems, primarily for medium- and heavy-duty trucks in North America, South America and Europe.

Meritor said Bowes recently returned to the United States after spending three years in China.

In its financial guidance, Meritor said quarterly revenue for the three months ended June 30 will range from $1.28 billion to $1.29 billion, down from $1.3 billion or more in a May 3 estimate. That would still be 7% to 8% more than a year earlier.

The company also estimated adjusted cash flow of $100 million to $104 million, down from $100 million to $110 million in May’s guidance. That places the company in a “breakeven” position for the quarter, compared with “slightly positive” in the May assessment.