ArvinMeritor predicts strong second quarter

ArvinMeritor, Inc. recently issued a press release reaffirming a full-year guidance of $1.40 - $1.60 per diluted share and predicting a strong financial performance in the year's second quarter. The company attributes this positive outlook to operational improvements and Performance Plus savings, which are overcoming adverse market conditions in North America.

As a result, the company expects to report quarterly results that are significantly better than the first quarter of fiscal year 2008 and the same period a year ago — subject to any unusual events that may occur prior to the closing of the quarter, such as an unfavorable resolution of a current legal and commercial dispute with a light vehicle customer.

Specific factors driving the anticipated improvement in the second quarter include cost reductions in direct material, overhead and labor and burden; increased throughput in the company's European facilities resulting from improved operational performance; higher sales of military and off-highway vehicles and a lower tax rate. The company expects the favorable second quarter results to be slightly offset by rising steel prices.

ArvinMeritor also announced that through the end of Feb. 2008, it had implemented initiatives associated with its Performance Plus profit improvement program that will reduce costs by $75 million per year on a run-rate basis.

The company reiterated that it anticipates earnings from continuing operations for fiscal year 2008 to be in the range of $1.40 - $1.60 per diluted share, before special items, and free cash flow to be in the range of $75 million to $100 million outflow.

ArvinMeritor will release its second-quarter results for fiscal year 2008 on April 29, 2008.

For more information about ArvinMeritor, visit the company's Web site.