Meritor, Inc. (NYSE: MTOR) today reported financial results for its first fiscal quarter ended Dec. 31, 2018.
First-Quarter Highlights
- Sales of $1,038 million
- Net income attributable to the company and net income from continuing operations attributable to the company of $90 million
- Diluted earnings per share from continuing operations of $1.03
- Adjusted income from continuing operations attributable to the company of $69 million, or $0.79 per adjusted diluted share
- Adjusted EBITDA of $119 million and adjusted EBITDA margin of 11.5 percent
- Repurchased 3 million common shares
First-Quarter Results
For the first quarter of fiscal year 2019, Meritor posted sales of $1,038 million, up from $903 million, or approximately 15 percent, from the same period last year. Higher sales were driven by increased truck production, primarily in North America, and market share gains.
Net income attributable to the company was $90 million, or $1.03 per diluted share, compared to net loss attributable to the company of $36 million, or $0.41 per diluted share, in the same period last year. The company recognized $31 million of income related to remeasuring the Maremont asbestos liability in the current period. In addition, Meritor incurred $77 million of tax expense in the prior year related to the enactment of the Tax Cuts and Jobs Act that did not repeat.
Adjusted income from continuing operations attributable to the company in the first quarter of fiscal year 2019 was $69 million, or $0.79 per adjusted diluted share, compared to $55 million, or $0.62 per adjusted diluted share, in the same period last year.
Adjusted EBITDA was $119 million, compared to $99 million in the first quarter of fiscal year 2018. Adjusted EBITDA margin for the first quarter of fiscal year 2019 was 11.5 percent, compared to 11.0 percent in the same period last year. Higher adjusted EBITDA and adjusted EBITDA margin were driven primarily by conversion on higher revenue and increased earnings from unconsolidated affiliates.
Cash provided by operating activities in the first quarter of fiscal year 2019 was $11 million compared to $33 million in the same period a year ago. Free cash flow was negative $12 million compared to free cash flow of $15 million in the same period last year. The decrease in cash flow was driven primarily by higher incentive compensation payments and investments in inventory to support stronger revenue.
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SOURCE: Meritor
