ON plant closure costs ArvinMeritor, but future still looks strong
TROY, Mich. — One of North America’s leading truck components manufacturers reports a 57 percent drop in third quarter earnings because of a week long labor disruption at a Tilbury, Ont. heavy-duty brake plant last month.
Still, ArvinMeritor’s stock rose as it raised its outlook for the July-September quarter.
earnings
For the fiscal third quarter ended June 30, the parts supplier reported earnings of $20 million, or 29 cents per share, down from $46 million.
The company says shutting down the Tilbury plant in June cost $28-million, after-tax. ArvinMeritor locked out the 246 Canadian Auto Workers employees after the union refused to take the company’s final offer to members for a ratification vote. The two sides came to an agreement after eight days.
“We regret the disruption and inconvenience this temporary work stoppage had on the production schedules of certain customers, but we are pleased that this situation was quickly resolved.” CEO Chip McClure said in a statement.
Meanwhile, in keeping with its strategic goals, ArvinMeritor continues to divest its light duty aftermarket businesses to focus in the global automotive and commercial truck markets.
The company announced it has sold its light vehicle motion control unit to AVM Industries LLC for an undisclosed amount.
The land and buildings of ArvinMeritor’s Marion, S.C. operation are not included in the deal.
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