Eaton, Meritor Report Higher Earnings; Meritor Appoints CEO
Photos by John Sommers II for TTComponent makers Eaton Corp. and Meritor Inc. reported higher earnings for their most recent fiscal quarters, with both companies citing a strong North American truck market, and Meritor appointed a new CEO.
Meritor named Jeffrey “Jay” Craig its CEO, effectively immediately, succeeding Ivor “Ike” Evans. Craig will remain president, and Evans was appointed chairman.
Evans became CEO two years ago after the departure of former CEO Chip McClure, and Craig was promoted to president last June.
New Meritor CEO Jeffrey “Jay” CraigMeritor earned $43 million, or 42 cents a share, compared with $1 million, or 1 cent, a year ago, for its fiscal second quarter ended March 31. Sales fell 9.4% to $864 million.
Meritor, which makes axles, brakes and drivelines, said commercial truck and industrial revenue fell 10.7% to $681 million, mostly due to lower production in South America and China and in its defense business.
That was partially offset by higher sales in North America associated with a strong Class 8 truck market, the company said, adding that it expects full-year revenue in the range of $3.5 billion to $3.55 billion, down from its previous $3.7 billion guidance.
Eaton earned $466 million in the first quarter, or 99 cents per share, up from $439 million, or 92 cents, a year earlier. Sales fell 5% to $5.2 billion.
The “results are a solid start to the year, coming in slightly above the midpoint of our guidance despite the impact from additional negative currency translation,” Chairman and CEO Alexander Cutler said in a statement.
Its vehicle segment sales slipped 4% to $955 million, with growth offset by an 8% negative currency translation. The segment reported an operating profit $164 million, up 9% year-over-year.
“North American truck markets were particularly strong in the quarter,” Cutler said. “We continue to expect the [North American] Class 8 truck market in 2015 to be 330,000.”
Eaton makes manual and automated manual transmissions and other trucking and auto components.
