Meritor Reports Second-Quarter Sales and Net Rise
Second-Quarter Highlights
- Sales of $1,066 million
- Net income attributable to the company and net income from continuing operations attributable to the company of $57 million, or $0.63 per diluted share
- Adjusted income from continuing operations attributable to the company of $68 million, or $0.75 per adjusted diluted share
- Adjusted EBITDA of $122 million and adjusted EBITDA margin of 11.4 percent
Second-Quarter Results
For the second quarter of fiscal year 2018, Meritor posted sales of $1,066 million, up $260 million or approximately 32 percent, from the same period last year. The increase in revenue was primarily driven by higher production in all of our major markets. Sales for the quarter were also favorably impacted by new business wins and favorable foreign currency.
Net income attributable to the company and net income from continuing operations attributable to the company were $57 million, or $0.63 per diluted share, compared to $22 million, or $0.24 per diluted share, in the same period last year. Higher net income year over year was driven primarily by conversion on increased revenue.
Adjusted income from continuing operations attributable to the company in the second quarter of fiscal year 2018 was $68 million, or $0.75 per adjusted diluted share, compared to $32 million, or $0.35 per adjusted diluted share, in the same period last year.
Adjusted EBITDA was $122 million, compared to $82 million in the second quarter of fiscal year 2017. Adjusted EBITDA margin for the second quarter of fiscal year 2018 was 11.4 percent, compared to 10.2 percent in the same period last year. Higher adjusted EBITDA and adjusted EBITDA margin year over year were driven primarily by conversion on higher revenue, $11 million of lower pension and retiree medical benefits and a one-time $10 million legal charge related to a dispute with a joint venture in the prior year that did not repeat. These increases were partially offset by incremental environmental reserves of $8 million principally related to a legacy site and $5 million of lower affiliate earnings arising from the sale of the company’s interest in the Meritor WABCO joint venture in the previous year.
Cash flow provided by operating activities in the second quarter of fiscal year 2018 was $39 million, a decrease of $5 million from the same period a year ago. Free cash flow was $22 million compared to $21 million in the same period last year.
Category: General Update, News