Car and truck parts maker ArvinMeritor withdrew its fiscal 2009 outlook and said it was cutting more jobs than previously announced, citing "continuing distress" in the global markets.
The warning comes at a time when pressure is mounting on U.S. auto parts suppliers, reeling from sinking demand from automakers globally as well as financial strains on U.S.-based automakers, their biggest customers.
But ArvinMeritor's shares rose 6 percent as it announced stepped-up restructuring and other cut-cutting actions in response to a "steep downturn" it said it was prepared to ride out.
ArvinMeritor said it would eliminate 1,500 jobs, more than the 1,250 job cuts announced in late October.
In November, ArvinMeritor forecast sales for the fiscal 2009 ending Sept. 27 would be in the range of $4.9 billion to $5.2 billion.
But the company said it was no longer able to forecast vehicle production volumes in the second half of its fiscal year.
ArvinMeritor said it now expects slightly more than $1 billion in sales in the fiscal first quarter, and expects to generate $50 million to $58 million in earnings before interest, taxes, depreciation and amortization.
