TROY, Mich., — ArvinMeritor’s sales fell 13 per cent to US$1.8 billion in the second quarter but net income still hit $27 million, or 41 US cents per share, for the period ended March 31.
“Reduced build rates for North American Class 8 trucks and light vehicles, softness in demand in our replacement markets, coupled with weaker European currencies, continue to have a negative impact on our revenues and earnings,” said Larry Yost, ArvinMeritor’s chairman and chief executive officer.
ArvinMeritor’s Commercial Vehicle Systems sales were $583 million, down 27 per cent from $794 million for the comparable period last year.
Volume decline outpaced the company’s ability to lower its fixed costs in the North American Class 8 commercial truck market and was the major factor in the deteriorating margin for this segment in the year over year comparison, the company explains.
“Recently, we revised our vehicle production outlook for North American Class 8 production down to 135,000 units from 160,000 units, reflecting the continued backlog of new and used vehicles in the market,” Yost said.