Meritor fiscal 2Q profit rises on lower costs

TROY (AP) -- Auto parts supplier Meritor Inc. said Wednesday that its fiscal second-quarter profit rose 18 percent, as lower costs more than offset a drop in sales. The company's adjusted earnings topped analysts' expectations, and Meritor shares rose 30 cents, or 4.5 percent, to $7.04 in midday trading. For the quarter ended March 31, the Troy, Mich.-based company reported net income to $20 million, or 21 cents per share, up from $17 million, or 18 cents per share, in the same quarter last year. Excluding one-time items and discontinued operations, the company said its adjusted profit from continuing operations was 33 cents per share for the recent quarter. Analysts, on average, expected adjusted earnings of 26 cents per share, according to a FactSet poll. Revenue edged down to $1.16 billion from $1.18 billion, as commercial truck and aftermarket and trailer sales rose in North America, but were offset by lower South American and European demand. Analysts expected revenue of $1.19 billion. The company attributed the better-than-expected profit to cost savings stemming from the recent restructuring of the company's European operations. Overall commercial truck revenue was flat at $693 million. Industrial revenue fell 5.6 percent to $289 million, while aftermarket and trailer revenue rose 2.3 percent to $263 million, the company said. Meritor said it expects to post a fiscal 2012 adjusted profit from continuing operations of $1.08 to $1.39 per share on about $4.8 billion in revenue. Analysts polled by FactSet expect a profit of $1.18 per share on $4.85 billion in revenue. Published: Fri, May 4, 2012