Profits from operations for the quarter ended March 31 slid to $27 million, down from $76 million a year earlier, the company said. The previous-year results are adjusted as if Arvin Industries Inc. and Meritor Automotive Inc. had been merged at that time.
The company’s sales fell 13% to $1.79 billion as it struggled with a 54% decline in heavy-truck output and slumping replacement-part sales.
During the quarter, the company had a charge of $6 million for a restructuring plan that included the cutting of 1,500 jobs, or 4% of its worker force, resulting in net income of $21 million.
“We believe by continuing to implement aggressive cost reductions, we will be well-positioned to grow and return value to our shareowners in the future,” said chairman and CEO Larry Yost. “The integration of Arvin and Meritor is proceeding on target and we expect to continue to reap financial benefits from synergies and shared services.”
