TROY, Mich., Dec. 9 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc.
(NYSE: ARM) today issued guidance for the first quarter of fiscal year 2009,
and withdrew previously released earnings expectations issued on Nov. 18, 2008
for the full year ending Sept. 27, 2009. The company is withdrawing full-year
guidance due to continuing distress in the global markets and the uncertainty
associated with projecting production volumes in the second half of the fiscal
year.
For the first quarter of fiscal year 2009, ArvinMeritor expects to
generate $50 million to $58 million of EBITDA (defined as income or loss from
continuing operations before interest, income taxes, depreciation and
amortization and loss on sale of receivables) on slightly more than $1 billion
in sales, before special items. The company anticipates free cash outflow in
the first quarter of 2009 to be less than its free cash outflow in the same
period last year.
ArvinMeritor's financial guidance for the first quarter of 2009 is for
continuing operations -- which includes ArvinMeritor's commercial vehicle
systems and wheels businesses. The company expects the remaining light vehicle
systems (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.
Analyst Day
The company is hosting its annual Analyst Day in New York City today where
its executive team including Chip McClure, chairman, CEO and president;
Carsten Reinhardt, president, Commercial Vehicle Systems; Jay Craig, senior
vice president and CFO and Mary Lehmann, senior vice president, Strategic
Initiatives, and Treasurer will present to investors and analysts.
Specifically, the team will provide a detailed overview of its commercial
vehicle and wheels businesses and discuss actions it is taking to mitigate the
effects of the current economic environment.
Webcast Detail
Investment community professionals who would like to attend the conference
in New York should contact Lisa Brickler in Investor Relations at
investor.relations@arvinmeritor.com or by phone at (248) 435-1545.
If you plan to participate in the conference by phone, dial (866) 770-7129
(within the United States), or (617) 213-8067 (from outside the United States)
10 minutes prior to the start of the call. Please reference Passcode #56441366
when dialing in. Investors can also listen to the conference call in real time
by visiting the Investors section of the company's web site at
http://www.arvinmeritor.com.
A replay of the call will be available until midnight on Dec. 12 by
calling (888) 286-8010 (within the United States) or (617) 801-6888 (from
outside the United States). The replay Passcode is #74125139. Presentation
slides will be available 30 minutes prior to the web cast on the Presentations
page of the Investors section of ArvinMeritor's web site at
http://www.arvinmeritor.com.
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.
