Meritor Sees Revenue Soar on Strong North American Market
Component supplier Meritor Inc. reported mixed fiscal 2018 first-quarter results, posting a tax-related net loss together with higher revenue amid strength in all its markets.
The net loss for the period ended Dec. 31 was $34 million, or 41 cents per diluted share, compared with net income of $16 million, or 17 cents, in the same period last year. The results included a $77 million non-cash tax expense as a result of the enactment of the Tax Cuts and Jobs Act, according to the Troy, Mich.-based company.
Revenue soared 29% to $903 million compared with $699 million a year earlier.
Revenue from its commercial truck and industrial sales segment jumped to $738 million, up $199 million compared with the same period last year — as production in all of its markets rose, with North America experiencing the largest increase.
In addition, the company noted continued benefits from new business wins as well as favorable foreign currency impacts this quarter due to the strengthening euro.
Meritor’s aftermarket and trailer segment notched sales of $195 million, up $11 million from the same period a year ago, primarily on higher volumes.
“Overall, this was an excellent quarter for us. We continue to drive strong operational execution, deliver new business wins and convert on stronger global markets,” Meritor CEO Jay Craig said in a statement. “We are raising our financial guidance for the year to reflect the continued strength we expect in our results for fiscal 2018.”
The company is forecasting fiscal year 2018 revenue of $3.8 billion to $3.9 billion. That compares with annual revenue of $3.3 billion in the 2017 period.
Also, net income attributable to the company is expected to be $120 million to $130 million, or $1.30 to $1.40. A year earlier, it was $324 million, or $3.59.
Meritor supplies drivetrain, mobility, braking and aftermarket solutions for the commercial vehicle and industrial markets.
