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Meritor Posts Fiscal 3Q Profit
Truck component supplier Meritor Inc. reported net income of $234 million, or 2.31 per share, in its fiscal third quarter ended June 30, reversing a loss of $38 million, or 39 cents, in the same period last year.
The company’s sales, however, slipped to $986 million, from $993 million.
Meritor attributed the decline in revenue to a weaker truck market in South America and lower defense revenue, which more than offset higher truck production in North America.
Sales at Meritor’s commercial truck and industrial segment declined 3% to $761 million.
Its aftermarket and trailer segment posted sales of $259 million, up 9% from a year ago.
Meritor also raised its outlook for adjusted earnings per share from continuing operations to a range of 65 to 75 cents, up from the previous guidance of 50 to 60 cents.
“Our year-to-date performance demonstrates the traction we’re getting to achieve sustained improvement in our financial performance,” Chairman and CEO Ike Evans said in the July 31 earnings announcement.