Meritor announced Wednesday sales of of $1,156 million for the second quarter of fiscal year 2019, up from $1,066 million, or approximately 8 percent from the same period last year.
Meritor says the increase in sales was driven by higher truck production, primarily in North America, partially offset by the strengthening of the U.S. dollar against most currencies. Sales were also favorably impacted by revenue outperformance, the company says.
Meritor says adjusted EBITDA was $139 million, compared to $122 million in the second quarter of fiscal year 2018. Adjusted EBITDA margin for the second quarter of fiscal year 2019 was 12.0 percent, compared to 11.4 percent in the same period last year. Higher adjusted EBITDA year over year was driven primarily by conversion on higher revenue, Meritor says, partially offset by the strengthening of the U.S. dollar against most currencies. Also, in the prior year, the company says it recorded an incremental environmental accrual of $8 million, principally related to a legacy site, that did not repeat.
“We delivered solid execution on our priorities during the quarter with strong conversion while continuing investments in our future,” says Jay Craig, CEO and president. “We expect to successfully deliver our M2019 plan and build on this success as we transition to M2022.”
Meritor says it Commercial Truck sales for the second quarter of fiscal year 2019 were $876 million, up $61 million, or 7 percent, compared to the same period last year. Segment adjusted EBITDA for the Commercial Truck segment was $88 million for the quarter, compared to $94 million in the prior year. Segment adjusted EBITDA margin decreased from 11.5 percent in the same period last year to 10.0 percent in the second quarter of fiscal year 2019. The decrease in segment adjusted EBITDA and segment adjusted EBITDA margin was driven primarily by higher net steel, freight and layered capacity costs, partially offset by conversion on higher revenue, the company says.
The Aftermarket, Industrial and Trailer segment posted sales of $329 million, up $33 million or 11 percent, from the same period last year. Higher sales were driven by increased industrial, trailer and aftermarket volumes in North America and pricing actions within the company’s Aftermarket business, Meritor says. Segment adjusted EBITDA for Aftermarket, Industrial and Trailer was $52 million compared to $38 million in the second quarter of fiscal year 2018. Segment adjusted EBITDA margin increased from 12.8 percent to 15.8 percent in the second quarter of fiscal year 2019. The increase in segment adjusted EBITDA and segment adjusted EBITDA margin was driven primarily by pricing actions within the company’s Aftermarket business and conversion on higher volumes, the company says.
