ArvinMeritor cuts earnings estimates
Oct 1, 2003 12:00 PM
Auto parts supplier ArvinMeritor Inc. cut earnings estimates to well below Wall Street's expectations. Shares of the company fell 12.14 percent, or $2.46, to $17.81 on the New York Stock Exchange. The company said product launches would cost more than it had anticipated. Charges for new information technology systems and additional warranty expenses were also blamed. ArvinMeritor said it expects fourth-quarter earnings of 48 cents a share to 51 cents a share, resulting in fiscal 2003 earnings of $2 to $2.03 a share. The figures include a net gain of $13 million after taxes, or 19 cents a share, on the sale of an exhaust tube factory. They also include incremental expenses of $5 million after taxes, or 7 cents a share, for additional restructuring programs. Analysts were expecting fourth-quarter earnings of 44 cents a share excluding extraordinary items, according to Thomson First Call. ArvinMeritor expects 2003 earnings of $1.88 a share to $1.91 a share, well below Wall Street's view of $1.97.
