May 4, 2010 / 1:16 PM / 7 years ago

UPDATE 2-ArvinMeritor quarterly profit beats forecast

* Revenues up 25 pct as vehicle production increased

* Fiscal Q2 EPS 16 cents, vs Wall St view 2 cents

* Sees Q3 revenue above Wall Street forecast

* Shares up more than 4 pct in premarket trade (Adds share prices, analyst estimate)

DETROIT, May 4 (Reuters) - Commercial truck parts maker ArvinMeritor Inc ARM.N posted a second-quarter profit that exceeded Wall Street forecasts as auto production recovered from a sharp downturn and sweeping cost cuts paid off.

The company's shares were up more than 4 percent to $16.49 in premarket trading on the New York Stock Exchange.

ArvinMeritor reported a profit of $16 million from continuing operations, or 20 cents per share, compared with a year-earlier loss of $48 million, or 66 cents per diluted share.

Including discontinued operations, earnings per diluted share were 16 cents, up from a loss of 67 cents a year earlier.

Analysts on average had expected ArvinMeritor to earn 2 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 25 percent to $1.2 billion.

ArvinMeritor expects third-quarter revenue to be flat from the second fiscal quarter ended March 31. That would be above Wall Street's average forecast of $1.09 billion.

The company, which achieved its targeted cost savings of $195 million over the past year, is benefiting from restructuring actions as auto sales rebound from the worst downturn since the recession of the early 1980s.

ArvinMeritor has been trying to cut its ties to the volatile light-vehicle market and focus on commercial vehicle parts over the past year. It said it was actively working with interested parties to divest its remaining light vehicle business by the end of 2010. (Reporting by Bernie Woodall and Soyoung Kim; Editing by Derek Caney, Dave Zimmerman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below