Meritor, Inc., announces Ivor J. “Ike” Evans has stepped down from his position as executive chairman of the board, effective immediately. He will continue to serve as a director for the company.
“My decision to step down reflects the successful planned transition to new leadership. It has been a privilege to serve Meritor as both CEO and Chairman during the last three years,” says Evans. “I look forward to supporting the Meritor board of directors and am confident in the future of the company.”
“On behalf of management and the Board of Directors, I want to express our appreciation for Ike’s significant contributions to the company,” says Jay Craig, CEO and president of Meritor. “Ike served as Chairman and CEO of Meritor during a transformational period for the company as he successfully led the launch and execution of our M2016 plan, which has fundamentally improved the operations and financial health of the company. We are pleased that we will continue to work with Ike and benefit from his insight and experience as we drive Meritor forward.”
William R. Newlin, currently lead independent director for Meritor and a member of the Compensation and Management Development Committee and the Corporate Governance and Nominating Committee, has been elected to serve as non-executive chairman of the board. Newlin has been chairman and a director of Newlin Investment Company, LLC since April 2007. He retired as chairman of the board of Kennametal, Inc. in 2015. Prior to that, Newlin served as executive vice president and chief administrative officer of Dick’s Sporting Goods, Inc. until his retirement in March 2007.
Meritor also on Thursday reported its financial results for its second fiscal quarter ended March 31, 2016.
The company says sales were $821 million, down $43 million, or approximately 5 percent, from the same period last year.
Net income attributable to Meritor from continuing operations on a GAAP basis was $33 million, or diluted earnings per share of $0.36, compared to $39 million, or diluted earnings per share of $0.38 in the same period last year. Adjusted income from continuing operations was $38 million, or adjusted diluted earnings per share of $0.41, compared to$43 million, or adjusted diluted earnings per share of $0.42, in the same period a year ago. Adjusted EBITDA was $81 million, compared to $87 million in the same period last year. Adjusted EBITDA margin was 9.9 percent for the quarter, compared to 10.1 percent in the same period last year. Free cash flow was $19 million in the second quarter of fiscal year 2016, compared to $27 million in the same period a year ago.
“We are continuing to execute well despite volatility in certain end markets,” says Craig. “M2016 is a transformational strategy for the company. We remain on track to achieve the underlying financial goals for new business, net debt reduction and improved margin performance as we stay committed to M2016 and providing a greater return to our shareholders.”