Meritor's 4Q Profit Jumps on Stronger Truck Market

John Sommers II for TT

Components maker Meritor Inc. said Tuesday its fiscal fourth-quarter profit jumped from a year ago on a stronger global truck market.

Net income rose to $31 million, or 32 cents per share, from $2 million, or 2 cents. Sales jumped 29% to $1.2 billion.

“Commercial truck demand globally remained strong,” Chairman and CEO Chip McClure said in a statement.

Adjusted income from continuing operations jumped to $43 million, from $14 million a year ago.

Its commercial truck segment’s sales rose to $768 million, up from $5547 million a year ago. Adjusted earnings before interest, taxes, depreciation and amortization almost doubled to $49 million, from $25 million.

Its aftermarket and trailer segment posted sales of $274 million, up from $237 million. Adjusted EBITDA for the segment rose $10 million to $32 million.

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Commercial vehicle net orders stronger than expected in October: ACT

COLUMBUS, Ind. -- North American Class 8 commercial vehicle preliminary net orders for October surprised on the upside, improving both month-over-month and year-over-year, according to ACT Research. The final numbers, which will be released mid-November, will approach 27,700 units for heavy-duty Class 8 trucks and 13,300 for medium Classes 5-7 vehicles. The preliminary net order numbers are typically accurate to within 5% of actual.
"At this level of order activity, there is probably some incremental fleet growth taking place," said Steve Tam, vice-president, commercial vehicle sector, ACT. "The underlying fundamentals in the heavy truck market are all healthy. Fleet equipment is old, trucker profitability is good, used truck values are strong, and financing is generally available. The strength in orders supports ACT's forecast for next year."

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