For the third quarter of fiscal year 2019, Meritor posted sales of $1,166 million, up $37 million or approximately 3 percent from the same period last year. 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, the company states.
Net income attributable to the company was $86 million or $1.00 per diluted share, compared with $64 million or $0.71per diluted share, in the same period last year. Net income from continuing operations attributable to the company was $85 million or $0.99 per diluted share, compared with $66 million or $0.73 per diluted share, in the same quarter last year. Higher net income year over year is primarily attributable to conversion on increased revenue and lower income tax expense, Meritor reports.
Adjusted income from continuing operations attributable to the company in the third quarter of fiscal year 2019 was $103 million or $1.20 of adjusted diluted earnings per share, compared to $80 million or $0.89 of adjusted diluted earnings per share, in the same period last year.
Adjusted EBITDA was $146 million compared with $135 million in the same period last year. Adjusted EBITDA margin for the third quarter of fiscal year 2019 was 12.5 percent, compared with 12.0 percent in the same period last year.
The increase in adjusted EBITDA and adjusted EBITDA margin year over year was driven primarily by conversion on higher revenue and the impact of the company’s aftermarket pricing actions implemented earlier this year, partially offset by higher material costs, the company says.
Cash provided by operating activities was $143 million in the third quarter of fiscal year 2019 compared with $119 million in the third quarter of fiscal year 2018. Higher earnings contributed to cash flow performance in the third quarter of fiscal year 2019.
Commercial truck sales were $869 million in the third quarter of fiscal year 2019, up 2 percent compared with the third quarter of fiscal year 2018. The increase in sales was driven primarily by increased production in North America, partially offset by the strengthening of the U.S. dollar against most currencies, the company reports.
Commercial Truck segment adjusted EBITDA was $93 million in the third quarter of fiscal year 2019, down $7 million from the same period in the prior fiscal year. Segment adjusted EBITDA margin decreased to 10.7 percent from 11.7 percent in the same period in the prior fiscal year.
Meritor states the decrease in segment adjusted EBITDA and segment adjusted EBITDA margin was driven primarily by higher material costs, partially offset by the conversion on higher revenue. Segment adjusted EBITDA was also impacted unfavorably by the strengthening of the U.S. dollar against most currencies.
Aftermarket, Industrial and Trailer sales were $340 million in the third quarter of fiscal year 2019, up 7 percent compared with the third quarter of fiscal year 2018. Higher revenue was driven by increased industrial volumes and pricing actions within the company’s Aftermarket business.
The Aftermarket, Industrial and Trailer segment adjusted EBITDA was $54 million in the third quarter of fiscal year 2019, up $16 million from the same period in the prior fiscal year. Segment adjusted EBITDA margin increased to 15.9 percent compared with 11.9 percent in the third quarter of fiscal year 2018. The increase in segment adjusted EBITDA and segment adjusted EBITDA margin was driven primarily by pricing actions within the company’s Aftermarket business.
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