Meritor Q2 revenues up 17% ahead of planned purchase by Cummins
By Bradley Osborne - 19th May 2022
USA – Meritor Inc, a manufacturer of powertrain and braking components for commercial vehicles based in Troy, Michigan, recorded strong revenues growth of 17% to USD1.2bn (USD983m) for the second fiscal quarter (and first calendar quarter (January to March)) of 2022, ahead of the planned takeover of the company by fellow American firm, Cummins Inc.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were also higher at USD127m compared with USD111m the same period of the year prior – though Meritor’s sales margin decreased slightly from 11.3% to 11%. Despite very high sales revenue for the quarter, the company’s income was negatively impacted by higher costs for steel and freight, which were only partially offset by pricing actions and by a lower tax expense.
