Meritor announced Wednesday it posted sales of $1,080 million during its fourth quarter of fiscal year 2018, up $158 million or approximately 17 percent from the same period last year.
Meritor says its Commercial Truck & Trailer sales were $854 million in the fourth quarter, up 18 percent compared to the fourth quarter of fiscal year 2017. Aftermarket & Industrial sales were $266 million in the fourth quarter of fiscal year 2018, up 10 percent compared to the fourth quarter of fiscal year 2017.
Meritor says the commercial increases were driven primarily by higher production in all of the company’s major markets, increased market share and new business wins. In the Aftermarket & Industrial category, Meritor says its growth was driven by higher volumes in its Industrial business, as well as the business the company acquired in September 2017.
Commercial Truck & Trailer segment adjusted EBITDA was $77 million in the fourth quarter of fiscal year 2018, up $6 million from the prior fiscal year. Segment adjusted EBITDA margin decreased to 9.0 percent from 9.8 percent in the same period in the prior fiscal year. Aftermarket & Industrial segment adjusted EBITDA was $39 million in the fourth quarter of fiscal year 2018, up $9 million from the same period in the prior fiscal year.
In fiscal year 2018, Meritor says its posted sales of $4.2 billion, up $831 million or approximately 25 percent from the prior year driven primarily by higher production in all of the company’s major markets. Sales for the year were also favorably impacted by revenue outperformance, primarily through increased market share and new business wins, as well as the business the company acquired in the fourth quarter of fiscal year 2017. Meritor says adjusted EBITDA was $474 million in fiscal year 2018, compared with $347 million in fiscal year 2017. Adjusted EBITDA margin was 11.3 percent in fiscal year 2018, up 90 basis points compared with the prior fiscal year.
“Fiscal 2018 was another excellent year for Meritor,” says Jay Craig, Meritor president and CEO. “New business wins, strong operational execution and conversion on higher revenue drove this strong performance. We are pleased to have achieved two M2019 objectives one year earlier than anticipated and we remain confident in our ability to drive shareholder value and build on this momentum in 2019 and beyond.”
Looking ahead, Meritor says it expects the following from continuing operations in fiscal year 2019: revenue to be approximately $4.25 billion; adjusted EBITDA margin of approximately 11.5 percent; operating cash flow to be in the range of $290 million to $300 million; free cash flow to be in the range of $175 million to $185 million.
