Meritor reports continued growth

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TROY, Mich. — Meritor Automotive has reported double-digit earnings growth for its ninth consecutive quarter.

Meritor sales for the fiscal quarter ending Dec. 31, 1999 hit $1.1 billion with a net income of $97 million, or $1.45 per share (all figures in U.S. dollars).

Sales for the quarter increased by $192 million, or 20 per cent, over the same period last year.

The company’s Heavy Vehicle Systems group, a key supplier to the trucking industry, enjoyed sales of $730 million during the quarter, an increase of $172 million, or 31 per cent, as compared to the same time last year.

However, the outlook for the immediate future includes a softening in the heavy-truck market, according to CEO and chairman Larry Yost.

“Demand in our core markets continues at a rapid pace and we believe that vehicle production levels will remain strong in our second fiscal quarter,” said Yost. “In the second half of fiscal 2000, we anticipate the North American heavy-truck market will soften about 15 to 20 per cent as compared to the prior year.

Our overall fiscal 2000 outlook is for moderately lower volumes in the North American heavy-truck and trailer markets and the European trailer market.”

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