Meritor, Inc. (NYSE: MTOR) today reported financial results for its first fiscal quarter that ended Dec. 31, 2019.
First-Quarter Highlights
- Sales of $901 million
- Net income attributable to Meritor and net income from continuing operations attributable to Meritor were each $39 million
- Diluted earnings per share from continuing operations of $0.48
- Adjusted income from continuing operations attributable to the company of $52 million, or $0.64 per adjusted diluted share
- Adjusted EBITDA of $98 million and adjusted EBITDA margin of 10.9 percent
- Repurchased 4.9 million shares for $100 million
First-Quarter Results
For the first quarter of fiscal year 2020, Meritor posted sales of $901 million, down $137 million, or approximately 13 percent, from the same period last year. The decrease in sales was driven by lower global production volumes, partially offset by sales from the company’s AxleTech business, which was acquired in the fourth quarter of fiscal year 2019.
Net income attributable to Meritor and net income from continuing operations attributable to Meritor were $39 million, or $0.48 per diluted share, compared to net income attributable to Meritor and net income from continuing operations attributable to Meritor of $90 million, or $1.03 per diluted share, in the same period last year. In the prior year, the company recognized $31 million of income related to remeasuring the Maremont asbestos liability, which did not repeat. Lower revenue year over year and higher restructuring costs, related to programs announced in September 2019, also contributed to lower net income from continuing operations.
Adjusted income from continuing operations attributable to the company in the first quarter of fiscal year 2020 was $52 million, or $0.64 per adjusted diluted share, compared to $69 million, or $0.79 per adjusted diluted share, in the same period last year.
Adjusted EBITDA was $98 million, compared to $119 million in the first quarter of fiscal year 2019. Adjusted EBITDA margin for the first quarter of fiscal year 2020 was 10.9 percent, compared to 11.5 percent in the same period last year. The decrease in adjusted EBITDA and adjusted EBITDA margin year over year was driven primarily by lower revenue, partially offset by lower material and labor and burden costs. Adjusted EBITDA margin was also negatively impacted from the AxleTech business, as the expected benefit from executed synergies continue to ramp up to full run rate.
Cash used for operating activities in the first quarter of fiscal year 2020 was $19 million compared to cash flow provided by operating activities of $11 million in the same period a year ago. Free cash flow was negative $35 million, compared to free cash flow of negative $12 million, in the same period last year. The decrease in cash flow was driven primarily by lower earnings in the first quarter of fiscal year 2020.
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SOURCE: Meritor
