Meritor Inc. ( MTOR ) reported a
significant fall in adjusted income to $6.0 million or 6 cents per
share in the second quarter of fiscal 2013 compared with $32.0
million or 33 cents in the year-ago quarter. However, earnings per
share surpassed the Zacks Consensus Estimate by 5 cents.DAIMLER AG (DDAIF): Get Free ReportMERITOR INC (MTOR): Free Stock Analysis ReportNAVISTAR INTL (NAV): Free Stock Analysis ReportVOLVO AB ADR B (VOLVY): Get Free ReportTo read this article on Zacks.com click here.Zacks Investment
On a reported basis, the company posted a net profit of $4.0
million or 4 cents per share in the second quarter of fiscal 2013
compared with $29.0 million or 30 cents in the corresponding
quarter last year.
Revenues went down 21.7% to $908.0 million, missing the Zacks
Consensus Estimate of $934.0 million. The decline in revenues was
due to lower sales volumes in global markets excluding South
Adjusted EBITDA was $58.0 million compared with $95.0 million in
the second quarter of fiscal 2012. Adjusted EBITDA margin declined
to 6.4%, from 8.2% in the year-ago quarter. However, EBITDA margin
was higher than the prior-quarter level by 120 basis points. The
improvement in EBITDA margin over the quarter was driven by
positive margin mix, seasonal aftermarket pricing actions and
benefits of structural cost reductions.
Revenues from the Commercial Truck & Industrial
segment fell 25.2% to $712.0 million in the reported
quarter. Segment EBITDA decreased 50.7% to $37.0 million from $75.0
million in the year-ago quarter, due to lower sales in all regions
excluding South America. EBITDA margin went down to 5.2% from 7.9%
in the prior-year quarter.
Revenues from the Aftermarket & Trailer
segment decreased 7.8% to $224.0 million, due to lower
volumes in North America. Segment EBITDA dropped 8.3% to $22.0
million from $24.0 million a year ago. EBITDA margin declined
marginally to 9.8% from 9.9% in the second quarter of fiscal
Meritor's cash and cash equivalents decreased to $117.0 million as
of Mar 31, 2013 from $257.0 million as of Sep 30, 2012. Total debt
remained flat at $1.1 billion as of Mar 31, 2013.
In the first half of fiscal 2013, the company had cash outflow of
$109.0 million from operating activities compared with $46.0
million in the year-ago period. Capital expenditures declined to
$23.0 million from $43.0 million a year ago. The company had free
cash outflow from continuing operations of $119.0 million in the
period compared with $81.0 million in the first half of fiscal
For fiscal 2013, the company has reiterated its revenue guidance
of $3.8 billion. Adjusted EBITDA margin is likely to be 7.0% and
adjusted earnings per share are expected between 25 cents and 35
cents for the year.
In addition, the company expects capital expenditures between
$65.0 million and $75.0 million for the fiscal year. Interest
expense is projected in the range of $95.0 million to $105.0
million for the year.
Headquartered in Troy, Mich., Meritor is a global automotive parts
manufacturer and supplier to various customers in North America,
Europe and other parts of the world. The company operates
manufacturing facilities in North America, South America, Europe
Some of its big customers include AB Volvo ( VOLVY ),
Navistar International Corporation ( NAV ) and
Daimler AG ( DDAIF ). Currently,
Meritor retains a Zacks Rank #4 (Sell).