Meritor Reports Higher 4Q Earnings
Truck component maker Meritor Inc. said its fiscal fourth-quarter earnings jumped from a year ago in part on the sale of its stake in Suspensys Sistemas Automotivos.
Net income for the quarter ended Sept. 30 rose to $37 million, or 38 cents a share, from $4 million, or 4 cents a share, a year earlier.
The company said it completed the sale of its 50% ownership in Brazilian suspension system manufacturer Suspensys to its joint venture partner Randon S.A. Implementos e Participacoes.
Sales dropped 8% from a year ago to $909 million, while sales for Meritor’s commercial truck and industrial segment fell $75 million to $709 million, driven by lower military sales.
“Revenue was unfavorably impacted by geographic mix as stronger sales in Europe and South America did not fully offset lower revenues in North America, India and China,” CEO and Chairman Ike Evans said in a statement.
The Troy, Mich.-based company reported a net loss for its full fiscal year of $22 million, or 22 cents per share, from an income of $52 million, or 72 cents, in 2012. Sales fell 16% to $3.7 billion.
Meritor said it expects fiscal 2014 revenue from continuing operations to be about $3.7 billion.
“Despite challenges in many of our end markets, I believe we’re taking the right steps to enhance our margin performance in 2014,” Evans said.
