Meritor on Thursday announced positive financial results for its first fiscal quarter that ended Dec. 31, 2021.
For its first quarter of fiscal year 2022, Meritor posted sales of $984 million, up $95 million, or approximately 11 percent, from the same period last year. The company says the increase in sales was primarily driven by higher truck production in most global markets.
Adjusted EBITDA was $113 million, compared to $102 million in the first quarter of fiscal year 2021. Adjusted EBITDA margin remained flat at 11.5 percent compared to the same period last year. Meritor says the increase in adjusted EBITDA was driven primarily by higher sales volumes, partially offset by net steel costs.
"We are pleased with our financial results this quarter," says Meritor President and CEO Chris Villavarayan. "Our momentum is strong as we look ahead to successfully completing M2022 and beginning our new three-year plan."
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In its Q1 report, Meritor says commercial truck sales were $785 million, up $94 million, or 14 percent, compared to the same period last year. The increase in sales was primarily driven by higher truck production in most global markets. Additionally, Aftermarket & Industrial sales for the first quarter of fiscal year 2022 were $241 million, up $7 million, or 3 percent, from the same period a year ago. The increase in sales in the first quarter of 2022 was primarily due to pricing actions taken in the segment.
Looking ahead, Meritor says its guidance for fiscal year 2022 remains unchanged:
- Revenue to be in the range of $4.1 billion to $4.3 billion
- Net income attributable to Meritor and net income from continuing operations attributable to Meritor to be in the range of $220 million to $255 million
- Diluted earnings per share from continuing operations in the range of $3.05 to $3.55
- Adjusted diluted earnings per share from continuing operations to be in the range of $3.25 to $3.75
- Adjusted EBITDA margin to be in the range of 11.5 percent to 12.5 percent
- Operating cash flow to be in the range of $275 million to $320 million
- Free cash flow to be in the range of $175 million to $200 million
