ArvinMeritor breaks even in 1Q on lower costs

posted: 7 DAYS 22 HOURS AGO

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TROY, Mich. -Auto parts supplier ArvinMeritor Inc. said Tuesday it broke even in the fiscal first quarter as cost cutting measures countered lower sales and helped reverse a year-ago loss.

The company said its results demonstrate that efforts to tamp down expenses are paying off. Auto parts suppliers such as ArvinMeritor have suffered over the last year as automakers slashed production to cope with falling sales. Many parts makers cut staff and some sought bankruptcy protection, though several automakers have ramped up production again in recent months.

ArvinMeritor's break-even earnings for the quarter ended Dec. 31 compare with a loss of $961 million, or $13.29 per share, in the same period last year.

Sales fell 6 percent to $1.15 billion.

The results easily beat estimates of analysts surveyed by Thomson Reuters, who had called for a loss of 7 cents per share on $1.06 billion in sales, on average.

The results "demonstrate that as we experience growth in our global markets we are successfully retaining the benefits of our previously executed cost reductions," said Chip McClure, chairman, CEO and president, in a statement.

Shares of ArvinMeritor rose 12 cents to $10.21 in morning trading. The stock has sharply recovered from a low of 32 cents hit last March.

2010-02-02 11:15:04