Good Quarter for ArvinMeritor

earned $15 million or 18 cents per share (before special items) during the second quarter of its fiscal year 2010, ended March 31, 2010. This was in stark contrast to a loss of $11 million or 15 cents per share (before special items) in the same quarter of last year. The result significantly outpaced the Zacks Consensus Estimate for a profit of 2 cents per share.
Sales in quarter improved 25% to $1.2 billion. EBITDA (adjusted) doubled to $64 million from the same period last year. The higher sales and earnings were attributed to the company's strong performance in emerging markets and enhanced commercial vehicle volumes in North America and Europe.
Segment Results
Sales in the Commercial Truck segment rose 31% to $458 million. EBITDA increased $43 million to $15 million due to higher sales. Sales in the Industrial segment inched up 9% to $248 million. EBITDA declined $17 million to $27 million as volumes of certain military programs declined.
Sales in the Aftermarket and Trailer segment slipped 5% to $238 million. EBITDA dipped $19 million to $17 million due to lower volumes of certain military programs.
Sales in the Light Vehicle Systems (LVS) segment, which will be divested by the end of 2010, shot higher by 51% to $339 million. EBITDA increased $25 million to $8 million due to higher sales and positive impact from cost-cutting measures.
Financial Position
ArvinMeritor had cash and cash equivalents of $274 million as of March 31, 2010. Long-term debt amounted to $1.03 billion as of that date. The company had a shareholder deficit of $877 million as of the same period.
In the first half of fiscal year 2010, ArvinMeritor's operating cash flow improved to $100 million, compared to an outflow of $402 million, primarily due to power equipment higher income. Capital expenditures reduced to $42 million from $72 million in the year-ago period.