61 posts tagged “meritor”

10/11/09

Source: http://money.cnn.com/news/newsfeeds/articles/prnewswire/200911100800PR_NEWS_USPR_____DE08425.htm

ArvinMeritor, Inc. (NYSE: ARM) today reported financial results for its fourth quarter and full fiscal year ended Sept. 30, 2009.

Fourth-Quarter Highlights

• Fourth-quarter sales were $984 million, approximately a four percent increase from the third quarter of fiscal year 2009; down from $1.5 billion in the fourth quarter of fiscal year 2008.
• On a GAAP basis, loss from continuing operations was $49 million for the fourth quarter, or a loss of $0.68 per diluted share, compared to a loss from continuing operations of $160 million, or $2.22 per diluted share, in the same period last year.
• Fourth-quarter EBITDA from continuing operations, before special items, was $40 million, approximately a 43-percent increase from the third quarter of fiscal year 2009, down from $87 million in the fourth quarter of fiscal year 2008.
• Cash flow from operations was $46 million compared to $157 million in the same period last year.
• Free cash flow (cash flow from operations, net of capital expenditures) was $22 million in the fourth quarter compared to free cash flow of $103 million in the fourth quarter of fiscal year 2008.
• Complied with all debt covenants.
• Entered into new two-year U.S. Receivables Securitization Agreement.
  

Fourth-Quarter Results 2009

"We are proud of our performance in the fourth quarter and the 2009 fiscal year," said Chairman, CEO and President Chip McClure. "Our team has not only generated positive free cash flow for two consecutive quarters, we’ve also reported cost savings in our commercial vehicle businesses of $195 million, complied with all debt covenants, and completed various other actions that we believe will strengthen the company as we benefit from improving conditions in global markets - particularly in China, India and Brazil," said McClure.

For the fourth quarter of fiscal year 2009, ArvinMeritor posted sales of $984 million, down thirty-six percent from the same period last year. This decrease in sales was primarily due to continued weakness in the global markets. As compared to the third quarter of fiscal year 2009, sales in the fourth quarter increased four percent as markets began to show signs of a recovery.

EBITDA from continuing operations (which excludes the wheels business), before special items, was $40 million, compared to $87 million in the fourth quarter of fiscal year 2008. EBITDA from continuing operations, before special items, increased 43 percent in the fourth quarter of fiscal year 2009 from the third quarter of fiscal year 2009. EBITDA margin from continuing operations, before special items, was 4.1 percent in the fourth quarter, down from 5.7 percent in the same period last year.

Loss from continuing operations, on a GAAP basis, was $49 million or $0.68 per diluted share, compared to a loss from continuing operations of $160 million or $2.22 per diluted share in the prior year.

Loss from continuing operations during the fourth quarter of fiscal year 2009, before special items, was $20 million, or $0.28 per diluted share, compared to income from continuing operations, before special items, of $26 million, or $0.35 per diluted share, a year ago. The loss from continuing operations, before special items, was driven by incremental tax expenses during the quarter due to the inability to recognize the tax benefit of losses in certain countries.

Free cash flow was $22 million in the fourth quarter compared to free cash flow of $103 million in the fourth quarter of fiscal year 2008. The company had $95 million in cash balances and an unutilized commitment of $611 million under its revolving credit facility as of Sept. 30, 2009.

Fiscal Year 2009 Results

• Sales from continuing operations for fiscal year 2009 were $4.1 billion, down 36 percent from fiscal year 2008.
• On a GAAP basis, net loss was $1,212 million or a loss of $16.72 per diluted share in fiscal year 2009.
• On a GAAP basis, loss per diluted share from continuing operations was $14.86 in fiscal year 2009, compared to a loss of $1.60 per diluted share in fiscal year 2008.
• Loss per share from continuing operations, before special items, was $1.32 per diluted share in fiscal year 2009, compared to income from continuing operations, before special items, of $1.11 per diluted share in fiscal year 2008.
• Free cash outflow (cash outflow from operations, net of capital expenditures) of $429 million for the full fiscal year.
  

"Our team remained focused and delivered on our 2009 priorities, while simultaneously managing the company through a global recession that affected all of our segments and customers worldwide," said McClure. "As we transform into a commercial vehicle and industrial company, we believe the results we demonstrated in each of these areas will make ArvinMeritor a leaner, more efficient organization well-positioned for future growth."

• Accelerate restructuring and other cost reductions
  

Achieved cost savings of $195 million in our core businesses for fiscal year 2009 due to swift and preemptive actions including workforce and temporary salary reductions; selective reductions in capital spending; extended manufacturing shutdowns; elimination of training programs; suspension of the quarterly dividend and elimination of all non-critical discretionary spending. The company also announced the closure of its Carrollton, Ky. assembly, machining and casting operation and the Tilbury, Ontario, Canada braking systems facility.

• Continue operational performance improvements
  

Further implemented production system methodology; optimized manufacturing footprint; lowered inventory; strategically focused capital spending on core processes to lessen dependency on layered capacity; and maintained focus on direct material optimization activities - with more than 900 of approximately 1,700 initiatives implemented.

• Complete LVS separation
  

Completed the sale of the company’s entire ownership interest in Gabriel de Venezuela and Meritor Suspension Systems Company (finalized in October 2009) joint ventures; and sold both the Wheels business and Gabriel Ride Control Products North America, thus reducing the company’s overall light vehicle business to 25 percent of total sales at the conclusion of fiscal year 2009.

• Continue to grow high-margin segments
  

Working with Lockheed Martin Systems Integration and BAE Systems U.S. Combat Systems on a technology demonstrator contract for the Joint Light Tactical Vehicle (JLTV) program; began production of Navistar MXT for British Ministry of Defense; added two key product families to expanding aftermarket portfolio for commercial vehicles including remanufactured Allison automatic transmissions and all-makes power steering gears and pumps.

• Innovate and strengthen technology
  

Introduced MXL greaseable drivelines for linehaul customers; launched PlatinumShield(TM) coating for both aftermarket and OE brake applications; completed internal integration of smart systems(TM) technology to further incorporate controls and electronics into the commercial vehicle advanced engineering group; opened technical center in Bangalore, India; preparing to launch MT-14X tandem axle in North America in 2010.

Business Segments

ArvinMeritor has revised its reporting segments following the recent divestitures of several light vehicle businesses. For continuing operations, the company will now report results as defined within Commercial Truck, Industrial, Aftermarket & Trailer and Light Vehicle Systems. Of these four segments, Commercial Truck, Industrial, and Aftermarket & Trailer are considered core to ArvinMeritor.

• Commercial Truck
  

Supplies drivetrain systems and components, including axles, drivelines, braking and suspension systems, primarily for medium and heavy duty trucks in North America, South America and Europe.

• Industrial
  

Supplies drivetrain systems including axles, brakes, drivelines and suspensions for off-highway, military, construction, bus and coach, fire and emergency, and other industrial applications. This segment also includes the company’s business in Asia Pacific, including all on- and off-highway activities.

• Aftermarket & Trailer
  

Supplies axles, brakes, suspension parts and other replacement and remanufactured parts, including transmissions, to commercial vehicle aftermarket customers. Also supplies a wide variety of undercarriage products and systems for trailer applications.

• Light Vehicle Systems
  

Supplies primarily roof and door systems for passenger cars to original equipment manufacturers; also includes company’s remaining Chassis operations.

2010 Priorities

ArvinMeritor has defined six key priorities for fiscal year 2010. The company believes it is imperative to execute well in each of these areas and has developed specific action plans to achieve strong results.

• Remain focused on rigorous cost management to realize improved operating leverage.
• Continue transformation to focus the company on global commercial vehicle and industrial markets.
• Successfully execute as global markets recover.
• Drive innovation - accelerating new products and advanced fuel efficient technologies.
• Maintain focus on sustainable profitable growth.
• Continued focus on balance sheet management.
  

Outlook for 2010

The company’s financial guidance for the first quarter of fiscal year 2010 is for expected results from continuing operations, which includes all four of ArvinMeritor’s current segments. For the first quarter of fiscal year 2010 (compared to the fourth fiscal quarter of 2009), the company anticipates:

• Revenue to be higher.
• EBITDA, before special items, to be higher.
• Income before taxes, before special items, to be higher.
  

In addition, on an absolute basis, the company anticipates:

• Free cash flow, before factoring and restructuring, to be slightly negative.
• Free cash flow to be around breakeven.
  

For fiscal year 2010, ArvinMeritor expects to report results in the following ranges for capital expenditures, interest expense, cash income taxes and income tax expense.

• Capital expenditures in the range of $90 million to $110 million.
• Interest expense to be in the range of $95 million to $110 million.
• Cash income taxes to be in the range of $25 million to $50 million.
• Income tax expense, before special items, to be in the range of $40 million to $60 million.
  

"With the steps we have taken to manage costs - in addition to our efforts to secure new multi-year contracts, develop advanced solutions for our customers, and focus talent and resources on strategic segments of our business - we believe we are on track to benefit from future recoveries in the global markets," said McClure.

Fourth-Quarter and Fiscal Year 2009 Results Conference Call

ArvinMeritor will host a telephone conference call and Web cast to discuss the company’s full-year and fourth-quarter results for fiscal year 2009 on Tuesday, Nov. 10, 2009, at 9 a.m. (ET).

To participate, call (617) 213-4837 ten minutes prior to the start of the call. Please reference participant pass code 85768695 when dialing in. Investors can also listen to the conference call in real time -- or the recorded version for 90 days afterward-- by visiting www.arvinmeritor.com.

A replay of the call will be available from Noon on Nov. 10, to 11:59 p.m. Nov. 17, 2009, by calling (888) 286-8010 (within the United States) or (617) 801-6888 for international calls. Please refer to replay pass code number 45056962.

The company’s fourth-quarter and full-year financial results will be released prior to the conference call and Web cast. The news release will be issued through PR Newswire and First Call, and will be available on the company’s Web site.

To access the listen-only audio Web cast, visit the ArvinMeritor Web site at www.arvinmeritor.com and select the Web cast link from the home page or the investor page.

10/8/09

Source: http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/08-10-2009/0005074895&EDATE=

ArvinMeritor Inc.'s (NYSE: ARM) Chairman, CEO and President Chip McClure today announced that the company is committed to remaining a strong and growing manufacturer and supplier in South America. Addressing a group of South American journalists, he said the company is focused on becoming a global commercial vehicle company with expanded leadership in original equipment and aftermarket for both the on- and off-highway global markets.

McClure said the company is planning an up to a $10-million [U.S.] investment for its commercial vehicle business in Brazil, which will support its expansion into new product segments as well as new manufacturing technology like advanced gear-making and efficient, high-quality equipment to make parts and components.

While ArvinMeritor is impacted by unprecedented economic changes, its production in South America is up nine percent quarter-over-quarter.

"Our growth strategy involves bringing new products and technology to South America," said McClure. "With a rich 100-year history, we are always exploring new opportunities that will meet our customers' needs. With the right products and a dedicated and talented workforce, ArvinMeritor will continue to be a strong commercial vehicle supplier in Brazil and across the continent."

According to McClure, ArvinMeritor's success in the region can be attributed to its experienced South American management team: Antonio Rossi, director - axle operations; Silvio Barros, director - sales and marketing; Angelo Morino, director - aftermarket; Jose M. Fernandes - director procurement; and Adalberto Momi, director - finance.

Also acknowledging the contributions of its joint venture companies - Freios Master and Suspensys - with the Randon Corp., McClure reinforced the importance of its ongoing collaboration with Randon and its management team. "ArvinMeritor has renewed its commitment to further strengthening its customer-focused relationship and business strategy with Randon," he said. Both joint ventures are based in Caxias do Sul, Brazil.

Wheels Business Divested

ArvinMeritor announced last week that it had entered into an agreement to sell its Wheels business to Iochpe-Maxion, a Sao Paulo, Brazil-based producer of wheels and frames for commercial vehicles, railway freight cars and castings. The sale is expected to close by the end of 2009.

"Iochpe-Maxion approached us about acquiring this asset and we determined that selling it was in the best interest in terms of ArvinMeritor's strategy and the Wheels businesses' long-term growth," said McClure. "This new owner will invest in Wheels and the valuable, talented people who support it.

"The Fumagalli wheel brand has a 60-year heritage and holds significant meaning for the global customer base," he said. "This transaction supports our efforts to move our goal of becoming a commercial vehicle company while at the same time offering Wheels an exciting new future as a strategic core business in the Iochpe-Maxion portfolio. We are grateful for the significant contributions the people of this business made to the success of our company. The White Shirt culture will continue to be recognized as a benchmark for best-in-class manufacturing initiatives."

The Wheels business operates manufacturing facilities in Limeira, Brazil and San Luis Potosi, Mexico.

Body Systems

ArvinMeritor's Body Systems business currently continues to be part of its portfolio. "As part of our transformation strategy to continue to divest our Light Vehicle Systems businesses, we intend to pursue the sale of our Body Systems business when market conditions support such actions," said McClure.

South America

For original equipment vehicle manufacturers in South America, ArvinMeritor manufactures and supplies front steer axles, drive axles (single and tandem drive), bus axles (low floor and entry platforms), and cab suspension systems. In collaboration with its joint ventures, Freios Master and Suspensys, ArvinMeritor supplies drum brakes, hubs, trailer and truck suspensions and trailer axles. The companies provide aftermarket distributors with axle parts such as precision axle gear forgings, bearings, oil seals, air brakes, friction material, brake hardware, kingpin kits, shock absorbers, trailer axles, suspension systems and wheels.

14/7/09

Source: http://bulktransporter.com/fleet/trucks/wabco-debuts-smart-trac-0714/

Meritor WABCO Vehicle Control Systems has introduced SmartTrac, a suite of antilock braking, automatic traction control, and stability control systems for commercial vehicles. SmartTrac uses advanced electronic control units with enhanced capabilities, to help North American truck operators with more options to meet operational needs.

The SmartTrac family of stability control systems is available immediately as a factory-installation option at several truck, tractor, and trailer OEMs. This line encompasses anti-lock braking systems (ABS), automatic traction control (ATC), and stability control systems designed for vehicle applications such as commercial trucks and trailers, construction, fire and rescue, bus and coach, and military.

SmartTrac integrates the company’s active safety systems technologies: 
--Electronic Stability Control (ESC) (released in 2005 by Meritor WABCO) combines Roll Stability Control (RSC) with the added capability of yaw or rotational control.
--Roll Stability Control (RSC) continually monitors conditions that can lead to a rollover and can automatically de-throttle the engine and apply the engine brake, and drive and trailer axle foundation brakes to reduce tractor-trailer speed when lateral acceleration limits are about to be exceeded.
--RSSplus is an advanced two-modulator valve, trailer-only, stability control system. It continually calculates the trailer’s roll stability threshold based on load and measures actual lateral acceleration (side-to-side movements) and individual wheel speeds. When conditions indicate a rollover may occur, the system automatically intervenes by reducing engine torque, and engaging the engine retarder, while automatically applying drive axle and trailer brakes to slow the vehicle and assist the driver in maintaining control.
--Monitoring and telematics: Communicating over the tractor’s data bus, status messages can be relayed to an onboard computer with telematics capabilities. Fleet managers at home can correlate stability control and braking events with precise time and location data.
--Improved diagnostics and event recording: The SmartTrac family of ECUs can capture data about braking and stability control events and create a record of accurate, detailed information.

5/7/09

Source: http://www.theoaklandpress.com/articles/2009/07/05/business/doc4a4ff37ee2af9117448110.txt

Like other automotive suppliers, Troy-based ArvinMeritor has taken its share of lumps during the recession, but it’s also pushing ahead with new technology and a diversification strategy that will broaden its sources of revenue.

At the same time, the company is reducing its exposure to the volatile light vehicle market but won’t give it up altogether.

“ArvinMeritor’s longevity is based on a rich heritage of product performance, customer service and engineering expertise,” said Chip McClure, the company’s chairman and chief executive officer said earlier this year as the company celebrated its centennial.

Since the company’s earliest roots as Timken-Detroit Axle in 1909 — through its evolution as Rockwell, Meritor Automotive and ArvinMeritor — it has been a leading supplier of commercial and light vehicle systems, modules and components to the global transportation industry.

“These characteristics, combined with our commitment to develop industry-leading products and provide customized services to meet the needs of our customers around the world, describe our long history of ‘forward thinking, ’ ” McClure said.

ArvinMeritor today is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry.

It serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets and light vehicle manufacturers.

Earlier this year, ArvinMeritor’s first hybrid drivetrain system was launched in a Wal-Mart Transportation vehicle.

Wal-Mart operates nearly 7,200 heavy-duty trucks in North America and has committed to doubling its fleet efficiency by 2015. Wal-Mart is testing and evaluating the newly configured vehicle in regular linehaul service at one of its distribution centers throughout 2009.

The Meritor dual-mode hybrid drivetrain combines both mechanical and electrical propulsion systems. Under 48 miles-per-hour, vehicle propulsion is delivered entirely through an electric motor with power from lithium ion batteries.

These batteries are recharged through regenerative braking and/or an engine-driven generator.

“While most hybrid systems today are best suited for start-stop applications, our hybrid drivetrain is specifically designed for linehaul, over-the-road trucks, the largest segment of the commercial vehicle population,” said Carsten J. Reinhardt, president of ArvinMeritor’s Commercial Vehicle Systems business.

ArvinMeritor has also taken on defense work and is also focusing on remanufacturing equipment for the heavy-duty trucks and buses.

The new remanufactured transmissions will be sold under ArvinMeritor’s Mascot product brand and include Allison AT, MT, HT, 1000, 2000, 2400, 3000, and 4000 series automatics, company officials said.

The remanufactured units can operate on a wide range of vocational truck and bus applications where the expected service life of the vehicle is long but the operating demands on the transmission are high, they added.

ArvinMeritor’s new all-makes steering gears and pumps remanufacturing program includes more than 600 parts numbers from brands such as Vickers, Hoburn, Luk, Sheppard, Eaton, Saginaw, TRW and ZF.

“Remanufacturing also provides the environmental benefit of extending the productive life of a part that might otherwise be scrapped,” said Doug Wolma, general manager of remanufacturing,

McClure said the new hybrid technology and other initiatives that have emerged from ArvinMeritor’s workshops are a barometer of the company’s vitality at a difficult time.

Since last October, the company has had to cut costs by nearly $500 million, he said.

“The difficult conditions we continue to experience in our commercial and light vehicle markets has required us to take aggressive steps,” he said.

“Many of these actions have regrettably impacted our employees, but the ArvinMeritor leadership team is committed to successfully manage the company through the continuing economic turbulence,” he said.

The cuts have included the elimination of more than 2,000 jobs, the closing of plants in Ontario and Kentucky as well as workforce reduction of more than 1,800 global employees as well as pay reductions for salaried employees worldwide.

In addition, ArvinMeritor suspended merit pay increases for fiscal 2009, eliminated matching contribution to the U.S. 401(k), eliminated company-paid training and education program, suspended its quarterly dividend and reduced capital spending as well as all non-critical discretionary spending.

ArvinMeritor has gone through multiple evolutions in the past 100 years, but its always been passionate about its strategies for growth and remains committed to growing its capabilities and strengthening its market position even in the current challenging economic climate, McClure  said.

“The future of manufacturing must rely on advancing through innovation, exploration and commercialization, which requires an increasingly sophisticated workforce and government policies to generate continued growth,” he said during the recent economic summit sponsored by the Detroit Economic Club.

“Prosperity comes from building, creating and producing,” said McClure.

3/6/09

Source: http://www.arvinmeritor.com/media_room/

ArvinMeritor, Inc. (NYSE: ARM) today announced that on June 1, 2009, the company was notified by the New York Stock Exchange, Inc. (“NYSE”) that, based upon modified listing standards adopted by the NYSE, it has regained compliance with the NYSE’s continued listing standards.  

As previously disclosed, the company was notified by the NYSE in March 2009 that it had fallen below the continued listing standard requiring the average market capitalization of a listed company to be not less than $75 million over a consecutive 30 trading-day period when, at the same time, total stockholders’ equity is less than $75 million. 

The NYSE’s continued listing standard, as modified under a pilot program effective through Oct. 31, 2009, lowered the required threshold from $75 million to $50 million. Accordingly, the company is currently in compliance with the NYSE’s continued listing requirement that pertains to market capitalization and stockholders’ equity. The NYSE has stated that it anticipates a subsequent rule filing prior to Oct. 31, 2009 to make this change a permanent continued listing standard.

14/2/09

Source: http://www.citizen-times.com/apps/pbcs.dll/article?AID=2009902140329

ArvinMeritor is laying off 47 hourly workers at its heavy truck axle parts plant here effective Monday.

Company spokeswoman Krista Sohm said workers were informed of the cuts this week.

She said the layoffs are the first the plant has had since it opened in 1982.

“This obviously is driven by the economic situation and the impact it's having on the commercial vehicle industry,” she said Friday.

The plant will have about 500 permanent workers after the cuts take effect, she said. Workers are being given a severance package.

ArvinMeritor, which is based in Troy, Mich., makes parts for cars and trucks and has been hit hard by declining auto sales and slumping demand for heavier trucks that use parts like those made in Fletcher.

The company recently reported a loss of $991 million for the fourth quarter of 2008 compared with $12 million for the fourth quarter of 2007. Much of the decline related to one-time items, but the loss from continuing operations was still 77 cents per share, down from a profit of 8 cents a share in the year-ago quarter.

The company said in December that it had cut its North American work force by 11 percent in the previous three months.

Its stock closed regular trading Friday at 91 cents, down 11 cents a share on the day and well off its 52-week high of $18.11. Standard & Poor's further reduced its rating of ArvinMeritor bonds late Thursday afternoon, saying the company is likely to face cash-flow issues this year and next.

Charles McClure Jr., the company's chairman, president and CEO, told analysts Feb. 4 that the company is running its business on the assumption that heavy truck sales will fall 27 percent this year compared with 2008.

10/2/09

Source: http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/02-10-2009/0004969706&EDATE=

Resists micro-abrasion which can lead to accelerated corrosion and rust-jacking

- Three-year, 300,000 mile warranty against rust-jacking

4/01/09

Source: http://trailer-bodybuilders.com/aftermarket/arvinmeritor-first-quarter-earnings-0204/index1.html

ArvinMeritor, Inc. today reported financial results for its first fiscal quarter ended Dec. 28, 2008, with sales from continuing operations of $1.4 billion, a decrease of approximately 18 percent from the same period last year.

The loss from continuing operations, before special items, was reported at $56 million, or $0.77 per diluted share, compared to income of $6 million, or $0.08 per diluted share, a year ago.

Special items for the quarter reflect non-cash charges including valuation reserves for certain deferred tax assets, other asset impairments primarily related to LVS, restructuring charges and certain costs incurred in anticipation of the previously planned spin-off or sale of the LVS business.

EBITDA, before special items, was $10 million, down $72 million from the same period last year. This decrease is primarily due to lower production volumes in most original equipment manufacturer market segments globally.

Free cash outflow was $386 million in the first quarter of fiscal year 2009 compared with free cash outflow of $305 million in the same period last year. The decrease in free cash flow reflects lower cash earnings, higher inventories due to the dramatic rate of unplanned production declines, and previously announced settlement payments to resolve claims with certain unions and customers.

"Although significant volume declines and charges associated with the LVS business negatively affected our results this quarter, we are aggressively executing a series of actions to help mitigate the effects of the ongoing economic crisis," said Chip McClure, chairman, CEO and president.

"Through continued focus on reducing costs, strengthening the aftermarket business and gaining new military contracts, the Commercial Vehicle Systems (CVS) business performed well. Despite the severe downturn in heavy truck markets in most regions of the world, the CVS team was able to offset the negative volumes with minimal impact on performance. These results clearly underscore the validity of our aggressive Performance Plus cost savings and growth initiatives."

ArvinMeritor has implemented a number of initiatives to help manage cash, and is prepared to take additional actions if needed. Initiatives in process include:

• Implemented workforce reductions of more than 1,500 employees.
  
• Extended shutdowns and reduced work weeks at all plants.
  
• Reduced and rebalanced capital spending.
  
• Initiated a 10-percent salary reduction for all U.S. executive-level employees; and a 5-percent reduction in salary for all other U.S. salaried employees, in addition to similar actions in other parts of the world.
  
• Eliminated matching contribution to the U.S. 401-K.
  
• Suspended merit increases for fiscal year 2009.
  
• Reduced discretionary spending by approximately 30 percent year-over- year.
• Reduced Board of Directors annual compensation by 10 percent.
• Suspended quarterly dividend.

As previously announced, economic conditions do not support the company's strategy to divest the entire LVS business at this time. "Due to continued deterioration in the global markets, it is now our priority to complete the divestiture of these businesses separately at acceptable returns to shareowners," said McClure.

In January, the company executed multiple actions to reduce fixed costs within the LVS business, which are expected to result in $57 million in annual savings. These actions included the elimination of the LVS divisional organization, resulting in a headcount reduction of more than 100 positions. The Body and Chassis businesses are now being managed to realize maximum cost efficiencies, with additional actions currently under consideration.

The Wheels business, located in Brazil and Mexico, will be retained by ArvinMeritor.

3/2/09

Source: http://trailer-bodybuilders.com/aftermarket/arvinmeritor-centennial-milestone-0203/

ArvinMeritor, Inc., today announced its centennial heritage anniversary at the company's annual shareowner meeting at its headquarters in Troy, Mich..

The company will commemorate this historic milestone throughout 2009 at events and product exhibitions , which will be marked with the launch of several "next generation" products from axles to brakes to hybrid drivetrain applications.

"ArvinMeritor's longevity is based on a rich heritage of product performance, customer service and engineering expertise," said Chip McClure, chairman, CEO and president of ArvinMeritor. "These characteristics, combined with our commitment to develop industry-leading products and provide customized services to meet the needs of our customers around the world, describe our long history of  'forward thinking.' "

Since the company's earliest roots as Timken-Detroit Axle in 1909 - through its evolution as Rockwell, Meritor Automotive and ArvinMeritor - it has been a supplier of commercial and light vehicle systems, modules and components to the global transportation industry.

ArvinMeritor has a family of brands, including: Meritor, Euclid, Meritor WABCO, Gabriel, Mascot and Trucktechnic.

6/1/09

Source: http://www.forbes.com/markets/2009/01/06/arvinmeritor-salaries-closer-markets-equity-cx_mp_0106markets36.html

Top executives at auto supplier ArvinMeritor may not be thrilled with the company's decision to temporarily reduce their pay by 10.0%, but investors rewarded the company by pushing shares up nearly 50.0% on Tuesday.

Citing worsening economic conditions, ArvinMeritor said its chief executive, chief financial officer, executive vice president and several senior vice presidents would be affected by the decision, which is part of the company's larger cost-cutting initiatives. Other high-ranking employees will have their pay temporarily cut by 5.0%,

Charles McClure, the company's board chairman, president and chief executive, earned a base salary of $1.1 million in 2008.

Investors showed their support for the move, which was announced late Monday, by snapping up the company's stock, which closed Tuesday's trading session ahead by $1.28, or 49.9%, at $3.95.

The auto supplier said pay changes go into effect starting Jan. 16, and declined to estimate when original salary rates could be reinstated. The decision is tied to the performance of the U.S. auto industry, which teetered on collapse as macroeconomic conditions forced consumers to reduce discretionary spending and tight credit conditions diminished attractive financing options, making car and truck sales difficult. Although the U.S. government recently approved a bailout package for the auto industry, it is yet to be seen whether the goverment efforts will be enough to spur a turnaround.

ArvinMeritor, which supplies parts to automakers, has been along for the bumpy ride since manufacturers have drastically cut production in response to deteriorating demand. Last year, the Troy, Mich.-based company reduced its workforce by 7.0% and withdrew its 2009 guidance, which was already well below analysts' expectations.