DETROIT -- ArvinMeritor Inc. said on Tuesday it lowered its quarterly earnings outlook because of weaker demand, higher steel costs and pricing pressures.
The company said it now expects to earn 33 cents to 36 cents per share in its fiscal second quarter, down from earlier estimates of 40 cents to 46 cents per share. The quarter ends on March 31.
ArvinMeritor, which makes axles, brakes, transmissions and clutches for commercial vehicles and doors, exhaust and suspension systems for light vehicles, had earned 52 cents a share in the year-earlier period.
Analysts' second-quarter estimates had ranged from 36 cents to 72 cents a share, with an average forecast of 45 cents, according to market tracker Thomson First Call.
ArvinMeritor had previously cut its second-quarter outlook in January when announcing job cuts and first-quarter results. At that time, it stood by its November forecast that it would earn about $2.50 to $2.70 a share in the fiscal year ending Sept. 30.
The Troy, Mich., company said on Tuesday it plans to update its 2003 full-year earnings forecast on April 23 when it releases second-quarter results.
It said demand has softened in all of its business groups except for commercial vehicle systems.
Both Ford Motor Co. and General Motors have announced second-quarter production cuts as demand has fallen. As a result, many analysts have cut their outlook for auto suppliers.