ArvinMeritor posts quarterly loss

Source: Reuters

Date :11/18/2008 9:10:02 AM

Car and truck parts maker ArvinMeritor Inc posted a quarterly loss on Tuesday, weighed down by hefty tax charges, and said it expected to sell its car parts business in 2009.

ArvinMeritor reported a net loss from continuing operations of $165 million, or $2.29 per share, for its fiscal fourth quarter ended September 30. That compared with a loss of $23 million, or 32 cents per share, a year earlier.

The result reflected non-cash income tax charges of $183 million. Excluding one-time items, it reported a profit of 38 cents per share, versus a loss of 6 cents per share a year earlier.

Revenue rose 8 percent to $1.7 billion.

ArvinMeritor expects sales for the fiscal 2009 to be in the range of $4.9 billion to $5.2 billion. It forecast earnings would be in the range of 80 cents to $1 per share in fiscal 2009, excluding special items.

ArvinMeritor said last month it was reviewing alternatives to a previously planned spin-off of its light vehicle business to shareholders because of difficult market conditions.

ArvinMeritor Chief Executive Chip McClure said on Tuesday the company has determined a sale will be its primary focus for the car parts unit, and has retained JPMorgan as its financial adviser.

ArvinMeritor is in the midst of reducing its global workforce by 1,250 employees, or about 7 percent. The cuts comprise 450 salaried and 800 hourly workers.

The job reductions and other restructuring actions will save $125 million annually, ArvinMeritor has said.

(Reporting by Soyoung Kim, editing by Dave Zimmerman)

DETROIT (Reuters)