ArvinMeritor Inc has reported financial results for its third fiscal quarter ended June 30th 2010. Quarterly highlights are as follows:
1. Sales were USD 1.3 billion, up by USD 333 million or 35% from the same period last year
2. Income before taxes was USD 31 million as compared to a loss of USD 21 million in the third quarter of fiscal year 2009
3. Net loss was USD 3 million as compared to a net loss of USD 164 million in the prior year's third quarter
4. Adjusted EBITDA was USD 76 million, up by USD 48 million from the same period last year
5. Cash flow from operations was USD 47 million in the third quarter of fiscal year 2010 as compared to USD 99 million in the same period last year
6. Positive free cash flow for the fifth consecutive quarter of USD 33 million in the third quarter of fiscal year 2010
For the third quarter of fiscal year 2010, ArvinMeritor posted sales from continuing operations of USD 1.3 billion, an increase of approximately 35% from the same period last year led by stronger truck demand in Europe and the Americas. Income before taxes was USD 31 million as compared to a loss of USD 21 million in the third quarter of fiscal year 2009.
Net income from continuing operations was USD 1 million as compared to a net loss from continuing operations of USD 34 million in the same period last year. Adjusted income from continuing operations was USD 2 million as compared to an adjusted loss from continuing operations of USD 24 million in the same period last year. Adjusted income from continuing operations reflects an effective tax rate of approximately 82% driven by strong earnings in the emerging markets and the ongoing impact of valuation allowances in the United States and Europe.
After the impact of discontinued operations, the net loss was USD 3 million as compared to a net loss of USD 164 million in the prior year's third fiscal quarter. Adjusted EBITDA was USD 76 million, up by USD 48 million from the same period last year. The company had strong margin conversion on incremental sales despite the return of temporary cost reductions implemented in fiscal year 2009 and the reduced demand for certain military OEM and service products from 2009.
Mr Chip McClure chairman, CEO & president of ArvinMeritor Inc said that "Higher revenues this quarter, up by 35% YoY, indicate continued strength in the emerging markets and improvements in our North American and European customer markets. In addition, our adjusted EBITDA margin doubled from the prior year's third fiscal quarter to 6% reflecting strong conversion of incremental revenue to earnings through tight cost controls."
