TROY, Mich. (AP) - Auto parts manufacturer ArvinMeritor Inc. on Monday said fiscal third-quarter profit declined due to an expensive work stoppage during the quarter, but the company lifted its full-year forecast.
In the three months ended June 30, net income fell to $20 million, or 29 cents per share, from $46 million, or 66 cents per share, a year ago. Income from continuing operations, excluding special items, was 73 cents per share, ahead of the company's guidance in a range of 60 cents to 70 cents per share.
ArvinMeritor attributed the earnings decline to a June labor disruption at its brake factory in Canada, which reduced earnings from continuing operations by $28 million. The company said the work stoppage has ended and the plant is operating at full capacity.
Revenue rose 4 percent to $2.48 billion from $2.39 billion a year ago. ArvinMeritor said the increase was driven by sales of light vehicle systems to Europe and Asia and strong sales growth in its specialty commercial vehicles business, which includes parts for fire and rescue, construction and military vehicles.
Analysts in a Thomson Financial survey, on average, forecast profit of 69 cents per share on sales of $2.4 billion.
The company raised its full-year outlook for earnings from continuing operations excluding special items to a range of $1.65 to $1.75 per share, up from $1.60 to $1.70 per share. The projection is within range of analysts' average target of $1.67 per share.