ArvinMeritor Inc. said fiscal third-quarter earnings fell because of lower heavy-truck production. As a result, the company said it plans to cut about 200 jobs.
Sales declined $263 million, or 13%, and net income before special items decreased $55 million, or 65%, from the same period last year. Profit from operations for the quarter through June slid to $29 million from $84 million, the company said. Sales declined 13% to $1.79 billion from $2.06 billion.
"The weakened economy – most notably the ongoing soft North American Class 8 truck market and weak light vehicle replacement markets – continues to have a significant impact on our sales," said Larry Yost, ArvinMeritor's chairman & CEO.
Yost added that the company is seeing a slowing decline in those markets, and that the results of the July 2000 merger of Arvin Industries Inc. and Meritor Automotive Inc. has fully positioned the company to take advantage of growth opportunities in every one of its businesses.
"By aligning our strategic restructuring plans with our merger synergies, we have driven down fixed costs and leveraged resources across the new organization,” said ArvinMeritor president Bill Hunt. “As we move forward, we will continue to identify opportunities to implement organizational excellence and enhance our ability to serve our global customers' needs for advanced integrated solutions."
