TROY, Mich., Nov. 18 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc. (NYSE:
ARM) today reported financial results for its full fiscal year and fourth
quarter ended Sept. 28, 2008.
Fiscal Year 2008 Highlights
-- Sales from continuing operations for fiscal year 2008 were $7.2
billion, up 11 percent compared to fiscal year 2007, due to strength in Europe
and South America. This increase was four percent at constant exchange rates.
-- On a GAAP basis, net loss was $101 million, or a loss of $1.40 per
diluted share, due to non-cash income tax charges of $183 million which the
company incurred in the fourth quarter primarily to repatriate cash to the
United States.
-- On a GAAP basis, loss per diluted share from continuing operations was
$1.26 compared to $0.43 per diluted share in fiscal year 2007.
-- Earnings per share from continuing operations, before special items,
were $1.60 per diluted share, compared to $0.53 per diluted share in fiscal
year 2007 -- in line with the company's full fiscal year guidance provided
throughout the year.
-- Free cash outflow (cash flow from operations, net of capital
expenditures) of negative $9 million for the full fiscal year, significantly
better than the forecasted range of negative $50 million to negative $100
million.
"Our team executed well in fiscal year 2008," said Chairman, CEO and
President Chip McClure. "We increased margins by 1.8 percentage points, before
special items, in our Commercial Vehicle Systems business by sharpening
operational performance in all regions, and we achieved our targeted savings
of $75 million in cost reductions through our global Performance Plus profit
improvement program.
"Although commercial and light vehicle volumes in North America were down
dramatically from fiscal year 2007, we increased revenue from customers in
Europe, South America and Asia Pacific. We also achieved our strategic
objectives to grow our military business through an intense and dedicated
focus on customer requirements for ArvinMeritor's drivetrain products. And, we
successfully strengthened our aftermarket business through organic growth and
two key acquisitions which position us for greater market penetration
globally," said McClure.
Fourth-Quarter Highlights
-- Fourth-quarter sales were $1.7 billion, up eight percent from the same
period last year.
-- On a GAAP basis, net loss from continuing operations was $165 million,
or a loss of $2.29 per diluted share, due to non-cash income tax charges of
$183 million primarily to repatriate cash to the United States.
-- Fourth-quarter income from continuing operations, before special items,
was $28 million, or $0.38 per diluted share, compared to a loss of $4 million,
or $0.06 per diluted share in fiscal year 2007.
-- Free cash flow was positive $103 million in the fourth quarter.
Fourth-Quarter Results 2008
For the fourth quarter of fiscal year 2008, ArvinMeritor posted sales of
$1.7 billion, up eight percent from the same period last year. At constant
exchange rates, sales were up three percent. This increase in sales was
primarily due to higher volumes in military, off-highway and aftermarket
products, and strong commercial vehicle production outside of North America.
These items were offset by softness in the global light vehicle markets.
Operating income in the fourth quarter of 2008 was $40 million, compared
to a loss of $16 million in the fourth quarter of fiscal year 2007. Excluding
special items, operating income was $52 million, compared to $8 million in the
prior year's fourth quarter.
Income from continuing operations during the fourth quarter of fiscal year
2008, before special items, was $28 million, or $0.38 per diluted share,
compared to a loss from continuing operations, before special items, of $4
million, or a loss of $0.06 per diluted share, a year ago. Favorable items
that impacted fourth-quarter results in fiscal year 2008 were higher sales and
operational improvements in supply chain management, application of lean
fundamentals and direct material cost reduction programs.
Special items included non-cash income tax charges, restructuring costs
and costs associated with the planned separation of the company's Light
Vehicle Systems (LVS) business group. These items accounted for approximately
$2.67 per diluted share of expense in the fourth quarter.
Fiscal-Year Accomplishments
"Our results in fiscal year 2008 indicate that we have improved our
ability to consistently run leaner operations, produce highly-engineered
products for our customers, execute acquisitions, and manage the business at a
profitable level despite a longer than anticipated downturn in the North
American Class 8 truck market," said McClure.
Specific accomplishments in 2008 include:
-- Improved manufacturing performance through state-of-the-art technology
across several of our core competencies, including advanced gear-cutting
processes.
-- Accelerated engineering and development to meet strong demand for Mine
Resistant Ambush Protected (MRAP) programs.
-- Grew U.S. aftermarket sales by six percent during a year in which the
U.S. truck replacement part industry was down six percent from last year.
-- Achieved $75 million in cost reductions through various initiatives
related to manufacturing performance, direct and indirect material
optimization and overhead savings within the Performance Plus program.
-- Higher earnings, enhanced collections and credit management, and global
inventory management favorably impacted cash flow in fiscal year 2008.
Cash and Liquidity
ArvinMeritor had $497 million in available cash balances and an undrawn,
available amount of $626 million under its revolving credit facility as of
Sept. 30, 2008. There are no current covenant constraints that limit the
availability of this facility. Also, as of Sept. 30, 2008, the company
utilized $521 million in factoring and securitization facilities - $419
million of which are pursuant to recently renewed 364-day committed liquidity
facilities that extend to September and October of 2009. The company has no
significant long-term debt maturity due until 2012.
Light Vehicle Systems Transaction Update
On Oct. 31, the company announced its plan to explore strategic
alternatives for the LVS business. "Declining global market and credit
conditions are the primary factors that have led us to expand our options for
separating the LVS business group, excluding the Wheels business located in
South America and Mexico," said McClure. "After a comprehensive review of
those options, we have determined that a sale will be our primary focus."
J.P. Morgan is the company's financial advisor related to the separation
of the business.
2009 Priorities
"The work we did to strengthen the company in 2008 enables us to respond
more quickly and efficiently to the deteriorating markets we are now
anticipating in fiscal year 2009," said McClure. "We have defined five key
priorities that we will diligently focus on this year." The five priorities
include:
-- Accelerate restructuring and cost reductions
-- Improve operational performance in all areas
-- Complete the separation of the light vehicle business, excluding wheels
-- Expand high-margin segments
-- Strengthen our product and technology position
Outlook for 2009
ArvinMeritor's forecast for North American Class 8 truck production is in
the range of 200,000 to 220,000 units in calendar year 2009, approximately the
same as in 2008. The company's forecast for heavy and medium truck volumes in
Western Europe is in the range of 400,000 to 450,000 units, down approximately
25 percent from fiscal year 2008.
The company's fiscal year 2009 financial guidance is for expected
continuing operations - which includes ArvinMeritor's commercial vehicle
systems and wheels businesses. ArvinMeritor expects the remaining LVS
businesses to be separated during 2009. The LVS outlook continues to be weak
and may negatively affect the company's overall financial condition and GAAP
results of operations until the point of sale.
Sales for fiscal year 2009 are forecasted to be in the range of $4.9
billion to $5.2 billion. The company expects earnings per diluted share,
excluding special items, to be in the range of $0.80 to $1.00. ArvinMeritor
anticipates free cash flow for the fiscal year to be approximately breakeven.
Full-year expectations include approximately $50 million in savings from
the company's Performance Plus profit improvement program which is now focused
on ArvinMeritor's European operations, and $80 million associated with
restructuring and cost reduction actions announced on Oct. 31, 2008.
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 separation of ArvinMeritor's LVS
business, including the timing and certainty of completion of any transaction,
the terms upon which any purchase and sale agreement may be entered into and
whether closing conditions (some of which may not be within the company's
control) will be met. 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 in the
future; 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.
Non-GAAP Measures
In addition to the results reported in accordance with accounting
principles generally accepted in the United States ("GAAP") included
throughout this press release, the company has provided information regarding
income or loss from continuing operations, diluted earnings per share and
operating income before special items, which are non-GAAP financial measures.
These non-GAAP measures are defined as reported income or loss from continuing
operations, reported diluted earnings or loss per share, and operating income
or loss plus or minus special items. Other non-GAAP financial measures include
"EBITDA," and "free cash flow." EBITDA is defined as income or loss from
continuing operations before interest, income taxes, depreciation and
amortization and loss on sale of receivables. We use EBITDA as the primary
basis to evaluate the performance of each of our reportable segments. Free
cash flow represents net cash provided by operating activities, less capital
expenditures.
Management believes that the non-GAAP financial measures used in this
press release are useful to both management and investors in their analysis of
the company's financial position and results of operations. In particular,
management believes that EBITDA is a meaningful measure of performance as it
is commonly utilized by management and the investment community to analyze
operating performance and entity valuation; and free cash flow is useful in
analyzing the company's ability to service and repay its debt. Further,
management uses these non-GAAP measures for planning and forecasting in future
periods.
These non-GAAP measures should not be considered a substitute for the
reported results prepared in accordance with GAAP. EBITDA should not be
considered as an alternative to net income as an indicator of our operating
performance or to cash flows as a measure of liquidity. Free cash flow should
not be considered a substitute for cash provided by operating activities, or
other cash flow statement data prepared in accordance with GAAP, or as a
measure of financial position or liquidity. In addition, the calculation of
free cash flow does not reflect cash used to service debt or cash received
from the divestitures of businesses or sales of other assets and thus does not
reflect funds available for investment or other discretionary uses. These non-
GAAP financial measures, as determined and presented by the company, may not
be comparable to related or similarly titled measures reported by other
companies.
Set forth on the following pages are reconciliations of these non-GAAP
financial measures, if applicable, to the most directly comparable financial
measures calculated and presented in accordance with GAAP.
Fourth-Quarter Results Conference Call
The company will host a telephone conference call and Web cast to discuss
the company's fiscal year 2008 fourth-quarter and full year financial results
on Tuesday, Nov. 18, 2008, at 9 a.m. (ET). To participate, call (888) 680-0890
ten minutes prior to the start of the call. Please reference participant
Passcode 68102365 when dialing in. Investors can also listen to the conference
call in real time - or the recorded version for seven days afterward- by
visiting www.arvinmeritor.com.
A replay of the call will be available from 11 a.m. on Nov. 18, to 11:59
p.m. on Nov. 25, by calling (888) 286-8010 within the United States, or (617)
801-6888, from anywhere else in the world. Please refer to replay Passcode
57935672.
To access the listen-only audio Web cast, visit the ArvinMeritor Web site
at www.arvinmeritor.com and select the Web cast link from the home page or the
investor page.
ARVINMERITOR, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, In millions, except per share amounts)
Quarter Ended Twelve Months Ended
September 30, September 30,
2008 2007 2008 2007
Sales $1,720 $1,592 $7,167 $6,449
Cost of sales (1,560) (1,483) (6,514) (5,957)
GROSS MARGIN 160 109 653 492
Selling, general and
administrative (117) (114) (444) (379)
Restructuring costs (1) (10) (20) (71)
Other income (expense), net (2) (1) (3) 11
OPERATING INCOME (LOSS) 40 (16) 186 53
Equity in earnings of
affiliates 9 10 38 34
Interest expense, net (17) (22) (83) (110)
INCOME (LOSS) BEFORE INCOME
TAXES 32 (28) 141 (23)
Benefit (provision) for income
taxes (196) 10 (217) 8
Minority interests (1) (5) (15) (15)
LOSS FROM CONTINUING OPERATIONS (165) (23) (91) (30)
INCOME (LOSS) FROM DISCONTINUED
OPERATIONS $12 $(39) $(10) $(189)
NET LOSS $(153) $(62) $(101) $(219)
DILUTED EARNINGS (LOSS) PER
SHARE
Continuing operations $(2.29) $(0.32) $(1.26) $(0.43)
Discontinued operations 0.17 (0.54) (0.14) (2.68)
Diluted loss per share $(2.12) $(0.86) $(1.40) $(3.11)
Diluted average common shares
outstanding 72.2 71.7 72.1 70.5
ARVINMERITOR, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited, In millions)
September 30, September 30,
2008 2007
ASSETS:
Cash and cash equivalents $ 497 $ 409
Receivables, trade and other, net 1,114 1,223
Inventories 623 541
Other current assets 218 216
Net property 775 738
Goodwill 522 520
Other assets 925 1,142
TOTAL ASSETS $ 4,674 $ 4,789
LIABILITIES AND SHAREOWNERS' EQUITY
Short-term debt $ 240 $ 18
Accounts payable 1,287 1,342
Other current liabilities 610 719
Long-term debt 1,063 1,130
Retirement benefits 690 763
Other liabilities 247 209
Minority interests 75 65
Shareowners' equity 462 543
TOTAL LIABILITIES AND SHAREOWNERS' EQUITY $ 4,674 $ 4,789
ARVINMERITOR, INC.
CONSOLIDATED BUSINESS SEGMENT INFORMATION
(Unaudited, In millions)
Quarter Ended Twelve Months Ended
September 30, September 30,
2008 2007 2008 2007
Sales:
Commercial Vehicle Systems $1,191 $1,035 $4,819 $4,205
Light Vehicle Systems 529 557 2,348 2,244
Total sales $1,720 $1,592 $7,167 $6,449
EBITDA:
Commercial Vehicle Systems $ 99 $ 35 $ 355 $ 221
Light Vehicle Systems 17 2 61 36
Total Segment EBITDA 116 37 416 257
Unallocated Corporate Costs (22) (3) (40) (11)
ET Corporate Allocations - (9) - (36)
Total EBITDA 94 25 376 210
Loss on Sale of Receivables (7) (3) (22) (9)
Depreciation and Amortization (39) (33) (145) (129)
Interest Expense, Net (17) (22) (83) (110)
Benefit (Provision) for Income
Taxes (196) 10 (217) 8
Loss from Continuing Operations $ (165) $ (23) $ (91) $ (30)
ARVINMERITOR, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, In millions)
Twelve Months Ended
September 30,
2008 2007
OPERATING ACTIVITIES $(91) $(30)
Loss from continuing operations
Adjustments to income (loss)
from continuing operations:
Depreciation and amortization 145 129
Gain on divestitures - (3)
Adjustment to impairment reserves, net - (10)
Deferred income tax expense (benefit) 109 (36)
Restructuring costs, net of payments (23) 39
Loss on debt extinguishment 3 6
Pension and retiree medical expense 105 129
Other adjustments to loss from continuing
operations, net - 16
Pension and retiree medical contributions (82) (202)
Proceeds from termination of interest rate swaps 28 -
Changes in off-balance sheet receivable
securitization and factoring 125 139
Changes in assets and liabilities (144) 3
Cash flows provided by continuing operations 175 180
Cash flows used for discontinued operations, net (12) (144)
CASH PROVIDED BY OPERATING ACTIVITIES 163 36
INVESTING ACTIVITIES
Capital expenditures (172) (120)
Acquisitions of businesses and investments,
net of cash acquired (57) (2)
Proceeds from disposition of property and
businesses 9 14
Proceeds from investments and marketable securities 5 5
Net investing cash flows provided by discontinued
operations 55 199
CASH PROVIDED BY (USED FOR) BY INVESTING ACTIVITIES (160) 96
FINANCING ACTIVITIES
Borrowings on accounts receivable securitization
program 111 (40)
Issuance of convertible notes - 200
Repayment of notes and term loan (5) (249)
Borrowings on lines of credit and other, net 26 3
Net change in debt 132 (86)
Debt issuance and extinguishment costs (6) (10)
Proceeds from exercise of stock options - 28
Cash dividends (29) (29)
Other financing activities - (1)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 97 (98)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS (12) 25
CHANGE IN CASH AND CASH EQUIVALENTS 88 59
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 409 350
CASH AND CASH EQUIVALENTS AT END OF PERIOD $497 $409
ARVINMERITOR, INC.
SELECTED FINANCIAL INFORMATION - RECONCILIATION
Non-GAAP
(Unaudited, in millions except per share amounts)
Spin-Off Non-Cash Q4 FY 08
Trans- Income Before
Q4 FY 08 Restruct- action Tax Tax Special
Reported uring Costs Charges Impact Items
Sales $1,720 $ - $ - $ - $ - $1,720
Gross Margin 160 - - - - 160
Operating Income 40 1 11 - - 52
Income (Loss) from
Continuing Operations (165) 1 7 183 2 28
Diluted Earnings (Loss)
Per Share - Continuing
Operations $(2.29) $ 0.01 $0.10 $ 2.53 $0.03 $ 0.38
Segment EBITDA:
Commercial Vehicle
Systems $ 99 $ (1) $ - $ - $ - $ 98
Light Vehicle
Systems 17 2 - - - 19
Total Segment EBITDA $ 116 $ 1 $ - $ - $ - $ 117
Segment EBITDA Margins
Commercial Vehicle
Systems 8.3 % 8.2 %
Light Vehicle Systems 3.2 % 3.6 %
Total Segment EBITDA
Margins 6.7 % 6.8 %
ARVINMERITOR, INC.
SELECTED FINANCIAL INFORMATION - RECONCILIATION
Non-GAAP
(Unaudited, in millions except per share amounts)
Q4 FY 07
Before
Q4 FY 07 Restruct- Income Special
Reported uring Other(1) Taxes Items
Sales $1,592 $ - $ - $ - $ 1,592
Gross Margin 109 - 9 - 118
Operating Income (16) 10 14 - 8
Income (Loss) from
Continuing Operations (23) 6 9 4 (4)
Diluted Earnings (Loss) Per
Share - Continuing
Operations $(0.32) $ 0.08 $ 0.12 $ 0.06 $ (0.06)
Segment EBITDA:
Commercial Vehicle
Systems $ 35 $ 1 $ 9 $ - $ 45
Light Vehicle Systems 2 8 3 - 13
Total Segment EBITDA $ 37 $ 9 $ 12 $ - $ 58
Segment EBITDA Margins
Commercial Vehicle Systems 3.4% 4.3%
Light Vehicle Systems 0.4% 2.3%
Total Segment EBITDA
Margins 2.3% 3.6%
(1) Other includes costs associated with product disruptions, supplier
reorganizations, environmental remediation and other.
ARVINMERITOR, INC.
SELECTED FINANCIAL INFORMATION - RECONCILIATION
Non-GAAP
(Unaudited, in millions except per share amounts)
Spin-Off Non-Cash YTD FY 08
Transact- Income Before
YTD FY 08 Restruct- ion Tax Special
Reported uring Costs Charges Items
Sales $7,167 $ - $ - $ - $ 7,167
Gross Margin 653 - - - 653
Operating Income 186 20 17 - 223
Income (Loss) from
Continuing Operations (91) 14 11 183 117
Diluted Earnings (Loss)
Per Share - Continuing
Operations $ (1.26)$ 0.19 $ 0.16 $ 2.51 $ 1.60
Segment EBITDA:
Commercial Vehicle
Systems $ 355 $ (1) $ - $ - $ 354
Light Vehicle Systems 61 20 - - 81
Total Segment EBITDA $ 416 $ 19 $ - $ - $ 435
Segment EBITDA Margins
Commercial Vehicle
Systems 7.4 % 7.3 %
Light Vehicle Systems 2.6 % 3.4 %
Total Segment EBITDA
Margins 5.8 % 6.1 %
ARVINMERITOR, INC.
SELECTED FINANCIAL INFORMATION - RECONCILIATION
Non-GAAP
(Unaudited, in millions except per share amounts)
Ride Control
YTD FY 07 Fair Value
Reported Adjustment Restructuring Other(1)
Sales $6,449 $- $- $-
Gross Margin 492 - - 7
Operating Income 53 (10) 71 12
Income (Loss) from
Continuing Operations (30) (6) 44 8
Diluted Earnings (Loss)
Per Share - Continuing
Operations $(0.43) $(0.08) $0.62 $0.11
Segment EBITDA:
Commercial Vehicle
Systems $221 $- $11 $-
Light Vehicle
Systems 36 (12) 54 12
Total Segment EBITDA $257 $(12) $65 $12
Segment EBITDA Margins
Commercial Vehicle
Systems 5.3%
Light Vehicle Systems 1.6%
Total Segment EBITDA
Margins 4.0%
YTD FY 07
Before
Debt Income Special
Extinguishment Taxes Items
Sales $- $- $6,449
Gross Margin - - 499
Operating Income - - 126
Income (Loss) from Continuing Operations 4 18 38
Diluted Earnings (Loss) Per Share -
Continuing Operations $0.05 $0.26 $0.53
Segment EBITDA:
Commercial Vehicle Systems $- $- $232
Light Vehicle Systems - - 90
Total Segment EBITDA $- $- $322
Segment EBITDA Margins
Commercial Vehicle Systems 5.5%
Light Vehicle Systems 4.0%
Total Segment EBITDA Margins 5.0%
(1) Other includes costs associated with product disruptions, supplier
reorganizations, environmental remediation and other.
ARVINMERITOR, INC.
EBITDA BEFORE SPECIAL ITEMS RECONCILIATION
Non-GAAP
(Unaudited, in millions)
Twelve Months Ended
September 30,
2008 2007
Total EBITDA - Before Special Items $ 413 $ 281
Restructuring Costs (20) (71)
Spin-Off Transaction Costs (17) -
Adjustment to Impairment Reserves - 12
Other (1) - (12)
Loss on Sale of Receivables (22) (9)
Depreciation and Amortization (145) (129)
Interest Expense, Net (83) (110)
Benefit (Provision) for Income Taxes (217) 8
Loss From Continuing Operations $ (91) $ (30)
(1) In fiscal year 2007, Other includes costs associated with product
disruptions, supplier reorganizations, environmental remediation and
other.
ARVINMERITOR, INC.
FREE CASH FLOW - RECONCILIATION
Non-GAAP
(Unaudited, in millions)
Quarter Twelve Months
Ended Ended
September 30, September 30,
2008 2007 2008 2007
Cash flows provided by continuing
operations $ 152 $ 252 $ 175 $ 180
Cash expenditures of continued
operations (54) (48) (172) (120)
Free cash flow - continuing operations 98 204 3 60
Cash flows provided by (used for)
discontinued operations 5 (26) (12) (144)
Capital expenditures of discontinued
operations - - - (29)
Free cash flow - discontinued operations 5 (26) (12) (173)
Free cash flow - full company $ 103 $ 178 $ (9) $(113)
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