The automotive parts manufacturer has received a MEGA (Michigan Economic Growth Authority) grant through the Michigan Economic Development Corp., valued at $2.2 million for the project. In addition, Oakland County has offered financial support, valuing up to $1.6 million, as well as training grants through its workforce development program.
ArvinMeritor is focused on improving its research, development, engineering and product design capabilities. The company spent $103 million in fiscal year 2009, $122 million in fiscal year 2008 and $116 million in fiscal year 2007 on company-sponsored research, development and engineering programs. Its technical centers are located in North America, Europe and Asia-Pacific (mainly, India and China).
For the second quarter of its fiscal year 2010 ended March 31, ArvinMeritor has revealed a profit of $15 million or 18 cents per share (before special items) in stark contrast to a loss of $11 million or 15 cents per share (before special items) in the same quarter last year. With this, the company has significantly outpaced the Zacks Consensus Estimate of a profit of 2 cents per share.
Sales in the quarter improved 25% to $1.2 billion. EBITDA (adjusted) doubled to $64 million from the same period last year. The higher sales and earnings were attributable to the company’s strong performance in the emerging markets and enhanced commercial vehicle volumes in North America and Europe.
Despite its improved results, we remain concerned about ArvinMeritor’s high customer concentration and slower recovery in its key markets in 2010.
Overall Summary: | 40%, Bullish 60%, Bearish | Trade Quality: | Upside 30%, Poor Downside 70%, Good |
http://www.arvinmeritor.com/
Analysts' Targets | |
Robert W. Baird & Co. | $15 |
Hold | |
Wednesday, February 03, 2010 |
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