Meritor Propels Truck Market To Outperform Fiscal Third Quarter
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Meritor Inc. reported increases in net income and revenues for its fiscal third quarter thanks to gains in the North American truck market.
For the period ended June 30, net income improved to $ 42 million, or 58 cents per diluted share, from a net loss of $ 36 million, or a loss of 50 cents, for the same period l last year.
The Troy, Mich.-Based company attributed the improvement to higher sales volumes, partially offset by higher transportation, steel and electrification development costs.
Revenue reached $ 1 billion, up $ 502 million or 98% from the previous year, thanks to higher global truck production in all markets.
“We’ve had a very good quarter,” Meritor CEO Chris Villavarayan said on a earnings conference call. “I want to recognize the dedication and commitment of our employees around the world and express my gratitude to them.
“The labor shortage in North America along with restrictions in the global supply chain has created a demanding environment, especially as revenues have grown by more than $ 500 million a year on the other on considerably higher volumes. Despite this momentum, Meritor’s safety, quality and delivery have remained excellent. This strong performance has enabled us to gain market share in some of our main product lines in North America. “
Meritor’s commercial truck segment reported revenue of $ 800 million, up $ 464 million, or 138%, from the period 2020. Adjusted profit by segment before depreciation and interest taxes increased is set at $ 69 million, up $ 92 million, from the third quarter of fiscal 2020.
The aftermarket and industrial segment achieved sales of $ 258 million, up $ 55 million, or 27%, from the previous year. Adjusted EBITDA by segment was $ 36 million, up $ 5 million from the third quarter of fiscal 2020.
Meanwhile, the company announced that it is revising its forecast from its earlier outlook for fiscal 2021:
- Revenue at $ 3.9 billion (prior outlook $ 3.650 billion to $ 3.8 billion).
- Net income of $ 175 million (prior outlook $ 145-155 million).
- Diluted earnings per share of $ 2.40 (prior outlook $ 2.00 to $ 2.15).
Company highlights during the quarter include:
Meritor will supply electrical transmission subsystems for Hyliion Corp’s electrified Hypertruck ERX powertrain. for Class 8 trucks. The Hyliion powertrain system will feature Meritor’s Blue Horizon 14Xe ePowertrain integrated drive axles as standard position propulsion and regeneration equipment on Hyliion vehicle layouts.
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Meritor’s 14Xe ePowertrain for medium and heavy-duty vehicles will be produced in Asheville and Forest City, North Carolina.
“We’re very strong on the heavy-duty side,” Villavarayan said, “and we’re also further ahead, from my point of view, in the electric powertrain. We are launching our electric axle, the first on the market, later. this year. As we think about it, this fall we will have our 14Xe in production and ready for delivery to customers. When we think about why customers choose us on this side, it’s mostly product availability, the speed to market and the difference in weight and efficiency So by incorporating an electric powertrain you save between 400 and 800 pounds and you create space [for more batteries]. “
Meritor launched its 17Xe axle in its fiscal second quarter 2021 and is developing a 12Xe axle.
Additionally, Hino will evaluate and test the Meritor ePowertrain for its development path towards zero emission vehicles.
Meritor has long been a key supplier to Hino Motors Manufacturing North America for the stepped axles on its mid-duty truck models, supplying 100% of those axles. With this new collaboration, the two companies seek to expand advanced electrified drive systems to further zero-emission development.
Villavarayan said Meritor, overall, has driven 1 million kilometers with 180 electric vehicles.
Meritor, Inc. is a global provider of transmission, mobility, braking, aftermarket, and electric powertrain solutions for the commercial and industrial vehicle markets.
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