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Meritor posts net loss, gains in Aftermarket & Trailer segment
For the third quarter of fiscal year 2013, Meritor reported Wednesday sales of $993 million – an 11 percent decline from the same period last year.
The company says the decrease was driven by lower sales in North America, the company’s military business and China.
“Our performance this quarter was in line with our expectations,” Executive Chairman, Interim CEO and President Ike Evans, says. “We have driven higher EBITDA margins over the last year primarily through improved net material performance, lower structural costs and pricing initiatives.”
Overall, the company posted a loss of $37 million, compared to net income of $50 million in the third quarter last year. The loss includes a $27 million loss on the settlement of certain pension plans in Canada; $19 million loss on debt extinguishment; $12 million of restructuring charges, and a $12 million charge for a specific warranty contingency.
Meritor says Commercial Truck & Industrial sales were $784 million, down $118 million from the same period last year, primarily driven by lower sales in all regions, except South America.
The company’s Aftermarket & Trailer segment posted sales of $238 million, down $7 million from the same period last year, primarily due to lower volumes in North America, the company says. Income for the Aftermarket & Trailer segment was $25 million, up $3 million from the third quarter of fiscal year 2012. The increase was primarily due to pricing and lower material and structural costs.
Additionally, Meritor announced Tuesday that it has divested its 50 percent share in a Brazilian partnership with Randon S.A. Implementos e Participacoes.