ArvinMeritor Raises Third Quarter and Fiscal Year 2005 Guidance to Higher End of Earlier Projections
TROY, Mich., June 7 -- ArvinMeritor, Inc. today announced that it expects the company's earnings from continuing operations for the third quarter of fiscal year 2005, ending June 30, to be at the higher end of the range forecasted in early May of $0.60 to $0.70 per diluted share, before special items. In addition, the company now expects its earnings for the full fiscal year to be at the higher end of the previously forecasted range of $1.40 to $1.60 per diluted share, before special items.
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"Our strong performance during April and May has raised our expectations for the third quarter, and we anticipate this improved performance will lead to higher earnings for the full fiscal year as well," said Chairman, CEO and President Charles G. "Chip" McClure. "Our improved operating performance and record sales from our Commercial Vehicle Systems group are the main contributors driving our stronger outlook. Prior guidance on our cash flow remains unchanged due to increased working capital associated with higher volumes. We're also beginning to see returns from the aggressive reductions we have made in our cost structure."
The sale of the North American Light Vehicle Aftermarket business is also on track, according to McClure, and is to be completed in the second half of the fiscal year.
"While these positive performance indicators are encouraging, we continue to address the ongoing challenges that impact our industry, including higher steel prices, global competition and pricing pressures from our customers," said McClure. "We remain committed to further improving our performance in each of our core businesses and continuing to enhance value for our shareowners."
The company plans to release its third-quarter results on July 28.
ArvinMeritor, Inc. is a premier $8 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. Headquartered in Troy, Mich., ArvinMeritor employs approximately 31,000 people at more than 120 manufacturing facilities in 25 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: http://www.arvinmeritor.com/ .
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 and potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and cost of raw materials, including steel; 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; the financial condition of the company's suppliers and customers, including potential bankruptcies; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations; success and timing of potential divestitures; potential impairment of long-lived assets, including goodwill; 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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