Soft Truck Market Takes Bite Out of Meritor First-Quarter Earnings
Commercial vehicle supplier Meritor Inc. reported lower fiscal first-quarter income and revenue as North American Class 8 production tailed off, it said Feb. 1.
Net income for the quarter ended Dec. 31 declined to $16 million, or 17 cents per diluted share, compared with $27 million, or 28 cents, in the same period last year.
Revenue of $699 million was down $110 million, or 14% from $809 million in the same period last year, the Troy, Michigan-based company said.
Its commercial truck and industrial sales slipped to $539 million, down $94 million compared with the 2015 period’s $633 million.
Its aftermarket and trailer business posted sales of $184 million, down $19 million from $203 in the same period a year ago, primarily due to lower volumes across the segment, the company said.
Intersegment sales were a net loss of $24 million, the company said.
“As our growth initiatives gain traction and truck volumes rebound in the global markets, we will be well-positioned to achieve our three-year financial objectives," CEO Jay Craig said in a statement.
Meritor reiterated its full-year guidance for 2017, estimating net income would be $80 million, or 90 cents, to $85 million, or 95 cents. Revenue would be $3 billion to $3.1 billion - unchanged from guidance in its previous quarter.
