Meritor posts higher profit, shares rise
Truck parts maker Meritor Inc posted a quarterly profit ahead of analysts’ expectations as margins increased and sales at its aftermarket and trailer segment rose, sending shares up 10 percent before the bell.
Meritor, which makes axles, brakes, drivelines and suspension parts, said revenue in the segment rose for the second quarter primarily on sales gains in North America. But it was partly offset by declines in Europe.
Gross margins rose to $134 million from $118 million.
The company, which was formerly known as ArvinMeritor Inc, reaffirmed its full-year revenue guidance of $4.8 billion.
Analysts on average had been expecting revenue of $4.9 billion, according to Thomson Reuters I/B/E/S.
January-March sales at the aftermarket and trailer segment rose 2 percent to $263 million. But total sales fell 1.7 percent to $1.16 billion.
Net income rose to $20 million, or 21 cents per share, from $17 million, or 18 cents per share, a year ago.
Excluding items, Meritor earned 33 cents per share, easily beating the 25 cents per share that analysts had expected.
The company’s shares were up 10 percent at $7.40 in premarket trade. They closed at $6.74 on Tuesday on the New York Stock Exchange.