DETROIT -- ArvinMeritor Inc. said today that fourth-quarter earnings were hurt by slow sales of commercial trucks in North America and rising production costs caused by skyrocketing demand for commercial trucks in Europe.
For the quarter ending Sept. 30, Troy-based ArvinMeritor reported a net loss of $62 million or 86 cents a share on revenue of $1.59 billion. For the same period last year, the company reported a loss of $274 million or $3.89 on revenue of $1.59 billion.
The fourth-quarter results included costs associated with supplier reorganizations, restructuring expenses and tax charges that cost about 26 cents a share.
Without those charges, ArvinMeritor said its loss from continuing operations was $4 million or 6 cents a share, compared with net income of $29 million or 41 cents for the same period last year.
Analysts on average expected earnings of zero cents a share, according to Yahoo! Finance.
Despite the solid progress we are making in implementing our strategic initiatives, our results this quarter were negatively impacted by weaker-than-anticipated North American truck production and the continuing capacity challenges in our European truck operations, Chairman and CEO Chip McClure said in a statement.
ArvinMeritor, a tier-one supplier to the automotive and commercial-truck industries, makes axles, brakes, driveshafts, sunroofs and door and trunk opening systems.
The company said it is suffering from freight and labor inefficiencies in Europe because of unanticipated demand for truck parts.
Satisfying customer demand for commercial trucks in Europe has been one of the biggest challenges our company is facing, McClure said Wednesday in a conference call with analysts. He said ArvinMeritor is adding suppliers in Europe to meet the demand.
For the year, ArvinMeritor reported a net loss of $219 million or $3.11 a share on revenue of $6.45 billion. For the previous fiscal year, the company reported a loss of $175 million or $2.49 on revenue of $6.4 billion.
The revenue figures do not include sales from an emissions division the company sold in May. The division reported annual sales of about $2.9 billion.
Next year, ArvinMeritor said, it expects sales to be $6.8 billion to $7 billion and earnings per share to be $1.40 to $1.60. The forecast does not include possible gains or losses on divestitures, restructuring costs and other items.
Based in suburban Detroit, ArvinMeritor ranks No. 19 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $8.52 billion in 2006.