St. Joe's Workshop

BY JEWEL GOPWANI

FREE PRESS BUSINESS WRITER

Troy-based ArvinMeritor broke even during the last three months of 2009, rebounding from one of the worst downturns in its history.

ArvinMeritor’s performance exceeded Wall Street expectations, even amid a 6% decline in revenue, largely because of higher margins on its commercial truck and light-vehicle businesses. ArvinMeritor officials noted that sales were up 16% compared with the company’s fourth quarter, which ended in September.

The news drove ArvinMeritor’s stock price up 56 cents or 5.6% to close at $10.65. The company’s stock has turned around from sinking as low as 32 cents in March.

“We’re especially proud to deliver these results in what has been a challenging environment,” said Chairman and CEO Chip McClure.

Between October and December, ArvinMeritor’s first fiscal quarter, the company broke even compared with a loss of $961 million, or $13.29 per share, during the same period in 2008 — ending its streak of five consecutive quarterly losses.

The loss last year came as automakers halted production during the credit crisis that sent auto sales plummeting.

With a stronger performance at the end of 2009, ArvinMeritor rescinded pay reductions and reinstated a 401(k) match for employees. It also has started to hire again for engineering, information technology and finance positions.

Moving into 2010, McClure said he anticipates solid rebounds in heavy truck production in Brazil, India and China. During the current quarter, ArvinMeritor said it expects revenue to be flat.

ArvinMeritor has been selling off its light-vehicle business to focus on its commercial truck operations, which make suspension systems, axles and braking systems. ArvinMeritor also makes parts for military and construction vehicles, as well as trailers.

In 2006, light vehicles made up a little more than half of ArvinMeritor’s business. Last year, it counted on light vehicles for only 25% of its sales.

What remains of ArvinMeritor’s light-vehicle business is a division that makes roof and door systems.

McClure said the supplier has had “a significant level of interest” in the business and expects to sell it this year.