TROY, Mich., Jan. 8 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc. (NYSE:
ARM) today provided an update on the previously announced process to sell its
Light Vehicle Systems (LVS) business, the reorganization of LVS, and its 2009
financial reporting.
"We are firmly committed to our long-term strategy of focusing on the
commercial vehicle on- and off-highway market segments for both original
equipment manufacturers and aftermarket customers," said Chip McClure,
chairman, CEO and president of ArvinMeritor. "As previously announced, we
were in negotiations to sell the LVS business group in its entirety. However,
in light of the unprecedented challenges in the credit markets and the volume
weakness in our industry, we have determined that in this financial
environment we cannot capture the appropriate value for LVS by selling the
business as a whole. We are confident that this decision will ultimately
generate the best returns for our shareholders."
The company will reorganize its LVS business group to include:
-- Body Systems. While the company continues to pursue a sale of the Body
Systems business separately, it will be managed to continue to improve its
financial performance and to ensure that a future sale will provide an
acceptable return to ArvinMeritor shareholders.
-- Chassis Systems. The company will continue to explore and evaluate
strategic alternatives for a timely and orderly exit from this business.
-- Wheels. As previously announced, ArvinMeritor expects to retain the
Wheels business.
In May 2008, ArvinMeritor announced a plan to spin off its LVS business to
its shareholders within twelve months, contingent upon satisfactory financial
and automotive market conditions. Due to the challenging market environment,
in October 2008 the company announced that while a spin-off was still an
option, it was also investigating alternatives to achieve the separation,
including a potential sale. With today's announcement, ArvinMeritor remains
committed to separating the businesses.
Management Structure
During an interim period, LVS Body Systems, as well as the LVS corporate
staffs, will report to Jay Craig, ArvinMeritor's chief financial officer. LVS
Chassis Systems will report to Jim Donlon, executive vice president, and the
Wheels business will to report to Mary Lehmann, senior vice president,
Strategic Initiatives, and Treasurer.
Effective immediately, Phil Martens former president of LVS will leave the
company to pursue other opportunities.
"We appreciate Phil's commitment, dedication and many contributions to the
LVS organization," said McClure. "Phil's comprehensive industry insight,
international experience and focus on new product development have been
valuable assets to our company."
Update on 2009 Fiscal Year Financial Reporting
At the ArvinMeritor 2008 Annual Analyst Day meeting held in New York on
Dec. 9, the company provided 2009 first fiscal quarter guidance and a
sensitivity analysis for certain financial metrics for expected continuing
operations. Due to the changes announced today regarding LVS, the company
expects the composition of continuing operations to be different than what was
reflected in the news release and presentation distributed on Dec. 9, and
assumed for the purposes of discussing the company's continuing operations on
a going forward basis. For that reason only, the company is withdrawing the
guidance and the sensitivity analysis that was provided at that time.
About Light Vehicle - Body Systems and Chassis Systems
ArvinMeritor's LVS Body Systems is a world leader in the design and
manufacture of components, systems and modules for car and light truck window,
door, access control and roof applications. The LVS Chassis Systems business
is focused on components and complete suspension systems for car and light
trucks for global OEMs and the aftermarket.
About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of
integrated systems, modules and components to the motor vehicle industry. The
company serves commercial truck, trailer and specialty original equipment
manufacturers and certain aftermarkets, and light vehicle manufacturers.
ArvinMeritor common stock is traded on the New York Stock Exchange under the
ticker symbol ARM. For more information, visit the company's Web site at:
http://www.arvinmeritor.com/.
Forward-Looking Statements
This press release contains statements relating to future results of the
company (including certain projections and business trends) that are "forward-
looking statements" as defined in the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are typically identified by words or
phrases such as "believe," "expect," "anticipate," "estimate," "should," "are
likely to be," "will" and similar expressions. There are risks and
uncertainties relating to the planned disposition of ArvinMeritor's LVS
business, including the timing and certainty of completion and the terms of
any transaction or transactions. In addition, actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to global economic and market cycles
and conditions, including the recent global economic crisis; the demand for
commercial, specialty and light vehicles for which the company supplies
products; risks inherent in operating abroad (including foreign currency
exchange rates and potential disruption of production and supply due to
terrorist attacks or acts of aggression); whether our liquidity will be
affected by declining vehicle production volumes; availability and sharply
rising cost of raw materials, including steel and oil; OEM program delays;
demand for and market acceptance of new and existing products; successful
development of new products; reliance on major OEM customers; labor relations
of the company, its suppliers and customers, including potential disruptions
in supply of parts to our facilities or demand for our products due to work
stoppages; the financial condition of the company's suppliers and customers,
including potential bankruptcies; possible adverse effects of any future
suspension of normal trade credit terms by our suppliers; potential
difficulties competing with companies that have avoided their existing
contracts in bankruptcy and reorganization proceedings; successful integration
of acquired or merged businesses; the ability to achieve the expected annual
savings and synergies from past and future business combinations and the
ability to achieve the expected benefits of restructuring actions; success and
timing of potential divestitures; potential impairment of long-lived assets,
including goodwill; potential adjustment of the value of deferred tax assets;
competitive product and pricing pressures; the amount of the company's debt;
the ability of the company to continue to comply with covenants in its
financing agreements; the ability of the company to access capital markets;
credit ratings of the company's debt; the outcome of existing and any future
legal proceedings, including any litigation with respect to environmental or
asbestos-related matters; the outcome of actual and potential product
liability and warranty and recall claims; rising costs of pension and other
post-retirement benefits and possible changes in pension and other accounting
rules; as well as other risks and uncertainties, including but not limited to
those detailed from time to time in filings of the company with the SEC. These
forward-looking statements are made only as of the date hereof, and the
company undertakes no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise, except as otherwise required by law.
All earnings per share amounts are on a diluted basis. The company's
fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters end
on the Sundays nearest Dec. 31, March 31 and June 30. All year and quarter
references relate to the company's fiscal year and fiscal quarters, unless
otherwise stated.
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