Meritor Loses Money on Declining Sales

Meritor Inc. recorded a $21 million net loss in the fiscal first quarter ended on Dec. 31 compared with a $22 million loss in the same period of 2011.

The company says revenue dropped 23% year over year to $891 million because of lower sales in all markets.

Adjusted earnings before interest, taxes, depreciation and amortization slid 42% to $46 million. Meritor attributes its net loss and declining adjusted EBITDA to weak demand outside North America.

The company's outflow of free cash swelled to $106 million in the October-December period from $20 million a year earlier. Meritor's cash cushion shrank by $118 million quarter over quarter to $139 million.

The company lowered its sales forecast for the current fiscal year to $3.8 billion from $4 billion.