Meritor Swings to 2Q Profit as Sales Rise
Meritor Inc. posted a profit for its fiscal second-quarter compared with a loss a year ago as sales rose, the company reported May 1.
The Troy, Michigan, component maker earned $1 million, or 1 cent per share, compared with a loss of $4 million, or 4 cents, a year ago.
Sales for the quarter ended March 31 increased 6% to $962 million.
Adjusted income from continuing operations was $21 million, or 22 cents a share, compared with $6 million, or 6 cents, a year ago.
Meritor Chairman and CEO and Ike Evans, who was named to his post in August, projected a higher outlook going forward.
“With our strong execution in the first half of the fiscal year and the anticipated strength in the North American market for Class 8 trucks, we’ve raised our full-year guidance for revenue, adjusted [earnings] and adjusted earnings per share,” Evans said in a statement.
“Our optimism for the second half is slightly tempered as markets in South America, Europe and India indicate softness in commercial truck demand in these regions,” he said.
Meritor said its revenue will be $3.75 billion to $3.8 billion for the current fiscal year, up from a previous $3.7 billion. Adjusted earnings will rise about 7.7% from a previously projected 7.5%.
Adjusted earnings per share from continuing operations will be 50 to 60 cents, up from a previous 30- to 40-cent projection.
