Also Reaffirms Full-Year Guidance of $1.40-$1.60 Per Diluted Share
TROY, Mich., March 18 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc.
(NYSE: ARM) announced today that operational improvements and Performance Plus
savings in the second quarter of fiscal year 2008 are overwhelming adverse
market conditions in North America.
As a result, the company expects to report quarterly results that are
significantly better than the first quarter of fiscal year 2008 and the same
period a year ago -- subject to any unusual events that may occur prior to the
closing of the quarter, such as an unfavorable resolution of a current legal
and commercial dispute with a light vehicle customer.
Specific factors driving the anticipated improvement in the second quarter
include cost reductions in direct material, overhead and labor and burden;
increased throughput in the company's European facilities resulting from
improved operational performance; higher sales of military and off-highway
vehicles and a lower tax rate. The company expects the favorable second
quarter results to be slightly offset by rising steel prices.
ArvinMeritor also announced that through the end of February 2008, it had
implemented initiatives associated with its Performance Plus profit
improvement program that will reduce costs by $75 million per year on a run-
The company reiterated that it anticipates earnings from continuing
operations for fiscal year 2008 to be in the range of $1.40-$1.60 per diluted
share, before special items, and free cash flow to be in the range of $75
million to $100 million outflow.
ArvinMeritor will release its second-quarter results for fiscal year 2008
on April 29, 2008.
ArvinMeritor, Inc. is a premier global supplier of a broad range of
integrated systems, modules and components to the motor vehicle industry. The
company serves commercial truck, trailer and specialty original equipment
manufacturers and certain aftermarkets, and light vehicle manufacturers.
Headquartered in Troy, Mich., ArvinMeritor employs approximately 18,000 people
in 24 countries. ArvinMeritor common stock is traded on the New York Stock
Exchange under the ticker symbol ARM. For more information, visit the
company's Web site at: http://www.arvinmeritor.com/ .
This press release contains statements relating to future results of the
company (including certain projections and business trends) that are "forward-
looking statements" as defined in the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are typically identified by words or
phrases such as "believe," "expect," "anticipate," "estimate," "should," "are
likely to be," "will" and similar expressions. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to global economic and market cycles
and conditions; the demand for commercial, specialty and light vehicles for
which the company supplies products; risks inherent in operating abroad
(including foreign currency exchange rates and potential disruption of
production and supply due to terrorist attacks or acts of aggression);
availability and cost of raw materials, including steel and oil; OEM program
delays; demand for and market acceptance of new and existing products;
successful development of new products; reliance on major OEM customers; labor
relations of the company, its suppliers and customers, including potential
disruptions in supply of parts to our facilities or demand for our products
due to work stoppages; the financial condition of the company's suppliers and
customers, including potential bankruptcies; possible adverse effects of any
future suspension of normal trade credit terms by our suppliers; potential
difficulties competing with companies that have avoided their existing
contracts in bankruptcy and reorganization proceedings; successful integration
of acquired or merged businesses; the ability to achieve the expected annual
savings and synergies from past and future business combinations and the
ability to achieve the expected benefits of restructuring actions; success and
timing of potential divestitures; potential impairment of long-lived assets,
including goodwill; potential adjustment of the value of deferred tax assets;
competitive product and pricing pressures; the amount of the company's debt;
the ability of the company to continue to comply with covenants in its
financing agreements; the ability of the company to access capital markets;
credit ratings of the company's debt; the outcome of existing and any future
legal proceedings, including any litigation with respect to environmental or
asbestos-related matters; the outcome of actual and potential product
liability and warranty and recall claims; rising costs of pension and other
post-retirement benefits and possible changes in pension and other accounting
rules; as well as other risks and uncertainties, including but not limited to
those detailed herein and from time to time in other filings of the company
with the SEC. These forward-looking statements are made only as of the date
hereof, and the company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise, except as otherwise required by law.
All earnings per share amounts are on a diluted basis. The company's
fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters end
on the Sundays nearest Dec. 31, March 31 and June 30. All year and quarter
references relate to the company's fiscal year and fiscal quarters, unless
SOURCE ArvinMeritor, Inc.
CONTACT: Krista McClure, +1-248-435-7115,
email@example.com; or Terry Huch, +1-248-435-9426,
firstname.lastname@example.org, both of ArvinMeritor, Inc.
Web site: http://www.arvinmeritor.com