ArvinMeritor swings to profit in Q3; shares up 20%
ArvinMeritor Inc. (NYSE:ARM) has gained 20% in today’s trading after reporting ahead of the opening that it had swung to a third-quarter profit. For the quarter ended June 30, net income was $44 million, or $0.60 per share, compared to a net loss of $70 million, or $0.99 per share, for the same period a year ago. Sales increased by $340 million to $2 billion.
“ArvinMeritor's favorable product, customer and geographic mix, combined with a dedicated focus across the company to implement and maintain cost reduction initiatives, drove strong results this quarter,” said Chip McClure, chairman, CEO and president, in a statement.
Demand from overseas operations also helped lift the earnings out of the red, the truck and car parts manufacturer said. Shares are at $14.31 at 12:37 p.m. ET, up $2.37 from Monday’s close. The stock has ranged from $9.08 to $21.74 during the past year.
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