ArvinMeritor (ARM) showed a loss of $20 million or 28 cents per share, before special items, in the fourth quarter of its fiscal year ended Sep 30, 2009. This is wider than the quarter-ago loss of 25 cents per share and compared to year-ago profit of $26 million or 35 cents per share. The loss was attributed to incremental tax expenses during the quarter due to the inability to recognize the tax benefit of losses in certain countries. However, the loss was narrower than the Zacks Consensus Estimate of 32 cents per share. Sales in the quarter totaled $984 million, a decline of 36% from the year-ago level of $1.5 billion. This was driven by continued weakness across the global markets. However, sales increased by 4% compared to the previous quarter of fiscal year 2009 due to improved conditions in global markets, particularly in China, India ...

ArvinMeritor (ARM) completed the anticipated sale of its Wheels business, based in Limeira, Brazil and San Luis Potosi, Mexico, to Iochpe-Maxion SA for $180 million.

In the third quarter of fiscal 2009, ended Jun 30, the company entered a purchase and sale agreement to divest the business to Iochpe-Maxion – a Sao Paulo, Brazil-based manufacturer of wheels and frames for commercial vehicles, railway freight cars and castings.

ArvinMeritor intends to use the net proceeds of $169 million from the sale to reduce outstanding balances on its revolving credit facility in advance of its fiscal fourth-quarter end. The company reiterated that it expects to remain in compliance with its financial covenant in the fourth quarter.

As of the fiscal third quarter, ArvinMeritor has a $700 million revolving credit facility, which matures in June 2011. The company's usage of the revolving credit facility under its senior secured credit facility increased significantly throughout the

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Earlier this month, auto parts supplier ArvinMeritor Inc. (ARM) agreed to sell its Wheels business to focus on its core business. Lochpe-Maxion, a Sao Paulo, Brazil-based producer of wheels and frames for commercial vehicles, railway freight cars and castings, will buy the segment from ArvinMeritor.

The sale is expected to close by the end of 2009. ArvinMeritor’s Wheels business has manufacturing facilities in Limeira, Brazil and San Luis Potosi, Mexico.

ArvinMeritor plans to invest up to $10 million in its commercial vehicle business in Brazil to support expansion into new product segments and new manufacturing technology. Despite the worldwide slump in automotive industry, the company's production in South America grew by 9% in the last quarter. Meanwhile, the company is also pursuing the sale of its light vehicle systems business, which includes the body systems unit.

ArvinMeritor has a leading position in most of its markets. The company

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Auto parts supplier ArvinMeritor Inc. (ARM) recently entered into a strategic partnership with Yutong Group Co. of China.

ArvinMeritor will provide parts and components of power transmission and basic braking systems to Yutong for the production of Yutong buses and chassis. Under the agreement, in addition to continually providing high-end axle products to Yutong, ArvinMeritor will also offer differential carriers and brake calipers made in its production plant in Wuxi, China, for application in Yutong’s self-made axles.

The final product will be assembled at Yutong's plant in Zhenzhou, China. As part of this partnership, ArvinMeritor and Yutong will also sell and distribute standard aftermarket service kits for its products.

The project will commence at the end of 2009 and the investment is expected to exceed $50 million in the next five years. Meanwhile, both parties will also further strengthen the cooperation in a wider area.

ArvinMeritor expects the alliance to consolidate its

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On June 30, 2009, ArvinMeritor Inc. (ARM) sold the Gabriel Ride Control Products North America, one of the units of its Chassis Ride Control business to private equity firm OpenGate Capital in Los Angeles. The business sold shock absorbers and struts assemblies to automakers. This is ArvinMeritor's third divestment since the beginning of 2009. Recently, the company had divested two other businesses, Meritor Suspension Systems Company ("MSSC") and Gabriel de Venezuela selling similar parts held in its Chassis business under its Light- Vehicle business.

ArvinMertor's Light-Vehicle Systems business accounts for 35% of total sales. This segment manufactures and supplies aperture systems (roof and door systems, and motion control products) and undercarriage systems (suspension and ride control systems, and wheel products) to OEMs. The business makes 46% of sales to Europe and 38% to North America. Body Systems contribute 60% of sales, and Chassis

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On June 24, auto parts maker ArvinMeritor (ARM) announced that it will sell its entire ownership interest in two joint ventures under its Light Vehicle Chassis Systems business.The first joint venture -- Meritor Suspension Systems Company (MSSC) -- is based in North America and involves the manufacture and sale of automotive coil springs, torsion bars and stabilizers. The second one -- Gabriel de Venezuela -- manufactures shock absorbers, struts, exhaust systems and suspension modules for countries such as Venezuela, Colombia, Chile, Bolivia, Peru, and Ecuador.ArvinMeritor's sale of both the 57% in MSSC and the 51% stake in Gabriel de Venezuela will lead to a divestiture of 45% of the company's Chassis Systems business.ArvinMeritor's light vehicle market is exposed to the cyclical aberrations of the auto industry. Weak demand in the light vehicle segment (33% of sales) in both North America ...

For Immediate Release

Chicago, IL - May 29, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Motors Corp. (GM), Magna (MGA), Lear (LEA), American Axle and Manufacturing (AXL) and ArvinMeritor (ARM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday's Analyst Blog:

GM Seeks Quick Bankruptcy

General Motors Corp. (GM) appears to be heading to bankruptcy court for a quick pre-packaged bankruptcy. This is after the bond holders who hold $27 billion in debt agreed to an offer that would give them 10% of the restructured GM with an ability to take

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GM May Be Heading for Quick, Pre-Packaged BankruptcyGeneral Motors Corp. (GM) appears to be heading to bankruptcy court for a quick pre-packaged bankruptcy. This is after the bond holders who hold $27 billion in debt agreed to an offer that would give them 10% of the restructured GM with an ability to take it to 15% with warrants. They must agree that assets will be sold to a new company in bankruptcy (good GM/bad GM).This is lower than the 58% ownership that they were looking for originally. It is also believed that there are treasury incentives to back up the bondholders. GM indicated that it may not make $1 billion of debt payments on June 1. However, it is believed that this will be covered by the Government.The Government is likely to hold 70% of the equity of GM post bankruptcy, which ...

Aspire Misery Index For the Week Ended March 20, 2009 For the week, the DJIA closed up 0.8%, marking the first consecutive week gain since the week ended May 2, 2008. The Samp;P gained 1.6%, while the Nasdaq gained 1.8%. middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Industrial Output ndash; The Federal Reserve reported that industrial output dropped by 1.4% in February. Expectations were for a 1.2% decline. middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Capacity Utilization ndash; Fell to 67.4% last month, the lowest level on record since 1948. middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Profit Warnings ndash; Energy Conversion Devices, Gray Television, Xerox, Sony Ericsson, middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Initial jobless claims came in a 646,000, down 12,000, while continuing claims came in at 5.47 million. Weekly claims were less than expected while continuing claims came in higher than expected. middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Job Cuts ndash; Energy Conversion Devices (about 75 jobs), Baker Hughes (another 1,500 jobs), Raleigh Media (78 jobs), Nokia (1,700 jobs), Lexington Dispatch (83 jobs), Crane amp; ...

ArvinMeritor (ARM) has a leading position in most of the markets it serves. The company is undergoing dramatic cost reductions through its profit improvement initiative Performance Plus. It is also expanding geographically and outsourcing to low-cost countries.However, difficult conditions in North American and West European automotive markets are primary concerns for the company. The downturn in the auto industry makes us apprehensive about the near-term prospects for auto suppliers such as ARM. The company has withdrawn its fiscal 2009 financial outlook and suspended the quarterly dividend.High leverage and the risk of non compliance of the debt covenants due to deteriorating profits are a matter of concern. These lead us to rate the shares a Hold with a target price of $1.00. Read the full analyst report on "ARM"Zacks Investment Research