) reported an adjusted loss of $11.0 million or 11 cents per
share in the first quarter of fiscal 2013 compared with the
prior-year profit of $11.0 million or 12 cents. The EPS missed
the Zacks Consensus Estimate of a profit of 4 cents.
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On a reported basis, the company posted a net loss of $16.0
million or 17 cents per share in the first quarter of fiscal 2013
compared with a loss of $13.0 million or 13 cents in the
corresponding quarter last year.
Revenues went down 23.1% to $891.0 million in the reported
quarter, missing the Zacks Consensus Estimate of $939 million.
The decline in revenues was due to lower sales volumes in global
Adjusted EBITDA was $46.0 million compared with $79.0 million in
the first quarter of fiscal 2012. Adjusted EBITDA margin was
5.2%, down from 6.8% in the year ago quarter. The decrease in
EBITDA margin was driven by lower sales, partially offset by the
favorable impact of lower material costs, pricing actions in
North America and rationalization of European footprint.
Revenues from the
Commercial Truck & Industrial segment
fell 26.7% to $715.0 million in the reported quarter. Segment
EBITDA decreased 44.3% to $34.0 million from $61.0 million in the
year-ago quarter, due to lower sales in all regions. EBITDA
margin went down to 4.8% from 6.3% in the prior-year quarter.
Revenues from the
Aftermarket & Trailer
segment decreased 6.9% to $203.0 million, due to lower volumes in
North America. Segment EBITDA plummeted 23.5% to $13.0 million
from $17.0 million a year ago. EBITDA margin declined to 6.4%
from 7.8% in the first quarter of fiscal 2012.
Meritor's cash and cash equivalents decreased to $139.0 million
as of Dec 31, 2012 from $257.0 million as of Sep 30, 2012. Total
debt remained flat at $1.1 billion as of Dec 31, 2012 compared
with the same as of Sep 30, 2012.
In the first quarter of fiscal 2013, the company had cash outflow
of $91.0 million from operating activities compared with a cash
flow of $5.0 million in the year-ago period. Capital expenditures
declined to $15.0 million from $25.0 million a year ago. The
company had free cash outflow from continuing operations of
$106.0 million for the quarter compared with $20.0 million last
For fiscal 2013, the company expects revenues to be $3.8 billion,
lower than the previous guidance of $4.0 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, higher than the previous estimate of $90
million to $100 million.
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 and Asia-Pacific.
Some of its big customers include
Navistar International Corporation
). Currently, Meritor retains a Zacks Rank #3 (Hold).