Revision: ArvinMeritor Targets Improved Return on Invested Capital
The following release was distributed April 14, 2003 without a forward- looking statement. It is being re-released today with that statement included, as well as a footnote containing ArvinMeritor's definition of Return on Invested Capital (ROIC).
TROY, Mich., April 14 -- ArvinMeritor, Inc. today announced that the company is targeting to improve return on invested capital (ROIC)(1) to between 13 percent and 15 percent within the next three to five years. The company's ROIC has fallen from the high teens five years ago to 8.5 percent in 2002. Declining profits as a result of weak markets caused the decrease. The information was part of ArvinMeritor's presentation to the Morgan Stanley Global Automotive Conference held today in New York City, which included an overview of the company, as well as a discussion of its strategies and investment strengths.
"We have consistently outperformed most of our peers in return on invested capital, because of our strong focus on both profits and asset control," said Larry Yost, ArvinMeritor chairman and CEO. "We are committed to this target and have a well-defined plan in place to achieve our goal."
ArvinMeritor, Inc. is a premier $7-billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets. In addition, ArvinMeritor is a leader in coil coating applications. The company is headquartered in Troy, Mich., and employs 32,000 people at more than 150 manufacturing facilities in 27 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: www.arvinmeritor.com .
(1) ArvinMeritor's definition of Return on Invested Capital (ROIC): Net operating profit after tax on average invested capital (total debt, including preferred capital securities, minority interests and shareowners equity).
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. 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 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; potential increases in raw material costs; 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 customers and suppliers; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations; competitive product and pricing pressures; the amount of the company's debt; 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; as well as other risks and uncertainties, including, but not limited to, those detailed from time to time in the filings of the company with the Securities and Exchange Commission.
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