Meritor, Inc. Business Report FY ended Sep. 2016
Financial Overview |
(in million USD) |
| FY ended Sep. 30, 2016 |
FY ended Sep. 30, 2015 |
Rate of Change (%) |
Factors | |
| Overall | ||||
| Overall Sales | 3,199 | 3,505 | (6.9) | 1) |
| Operating Income | 204 | 128 | (41.0) | |
| EBITDA | 323 | 339 | 4.6 | - |
| Commercial Truck & Industrial | ||||
| Sales | 2,445 | 2,739 | (10.7) | 2) |
| EBITDA | 208 | 216 | (0.9) | - |
Factors
1) Overall
-Sales revenue in the fiscal year that ended in September 2016 was USD 3,199, a decrease from the USDS 3,505 that the Company recorded in the previous fiscal year. The decrease was attributable to the strong valuable of the US dollar in relation to the euro and Brazilian real. Furthermore, worsening economic conditions in South America and China led to decreased production volumes.
2) Commercial Trucks/Industrial-Use Vehicles
-Sales revenue in this business was USD 2,445, a 10.7% year-on-year decrease. The decrease in revenue was attributable to lower production volumes for the North American Class 8 truck market and for the South American market. In addition, business performance was affected by negative currency translation due to the strong US dollar against the euro and the sluggish economy in Brazil. This decrease in sales revenue was partially offset by sales generated by new business won and the growing size of the market in India.
Contracts
-The company announced a new five-year agreement with Navistar. Under the terms of the agreement, Meritor retains standard position for brakes and rear axles, as well as standard position for front axles in severe service, medium-duty and bus applications. (From a press release on March 31, 2016)
-Meritor WABCO announced that its SmartTrac electronic stability control (ESC) is featured on Thomas Built Buses' Saf-T-Liner C2 school buses. Starting in September 2015, Thomas Built Buses will offer SmartTrac ESC, an active vehicle safety system that intervenes automatically when there is a high risk of rollover or directional instability that could lead to loss of vehicle control. (From a press release on September 9, 2015)
Awards
-Meritor WABCO announced that it has received the 2015 Masters of Quality Supplier Award from Daimler Trucks North America (DTNA). The honored suppliers represent the top-quality providers of components and services for DTNA's Freightliner and Western Star truck brands. Two of Meritor WABCO's production facilities received the award: Hebron, Kentucky, United States and Monterrey, Nuevo Leon, Mexico. (From a press release on September 6, 2016)
-Meritor WABCO announced that it has received the 2015 Masters of Quality Supplier Award from Daimler Trucks North America (DTNA). The honored suppliers represent the top-quality providers of components and services for DTNA's Freightliner and Western Star truck brands. Two of Meritor WABCO's production facilities received the award: Hebron, Kentucky, United States and Monterrey, Nuevo Leon, Mexico. (From a press release on September 6, 2016)
-Meritor WABCO announced that it has received the 2014 Excellence in Quality Award from Hino Motors Manufacturing U.S.A., Inc. Meritor WABCO has been recognized with this award five times in the past seven years. Meritor WABCO supplies Hino with pneumatic and hydraulic anti-lock braking systems (ABS) for commercial vehicles built in Williamstown, West Virginia, USA and Woodstock, Ontario, Canada. In addition to the zero PPM quality performance for Hino, Meritor WABCO's on-time delivery performance was 100 percent for 2014. (From a press release on July 21, 2015)
R&D Expenditure |
(in million USD) |
| FY ended Sep. 30, 2016 |
FY ended Sep. 30, 2015 |
FY ended Sep. 30, 2014 |
|
| Overall | 68 | 69 | 71 |
R&D Facilities
| Name | Location |
| Technical Center | Troy, Michigan, USA Cameri, Italy Cwmbran, UK Bangalore, India |
| Engineering Center | Cienega de Flores, Nuevo Leon, Mexico Osasco and Resende, Brazil Shanghai and Xuzhou, China Mysore, India |
Product Development
13X Drive Axle
-The company has unveiled the 13X drive axle for Class 6 and 7 applications. It will be available for OEM production starting in the second quarter of 2016. Available in a wide variety of ratios from 3.90 to 6.50 and with gross axle weight ratings (GAWR) between 17,000 and 21,000 pounds, the 13X is offered with standard differentials and is compatible with air drum or hydraulic disc brakes as well as parking brakes. (From a press release on February 28, 2016)
Front Steer Axle
-The company announced that it has unveiled the Meritor Front Steer axle (MFS+). The new lighter-weight, front-steer axle has a gross axle weight rating (GAWR) between 12,000 and 13,200 pounds. The MFS+ saves up to 85 pounds from the current offering. (From a press release on February 28, 2016)
Collision Mitigation System (OnGuard)
-Meritor WABCO announced the OnGuard Collision Mitigation System is now available for use in medium-duty trucks, another first in the industry. Used extensively in heavy-duty trucks since 2007, OnGuard is North America's leading collision mitigation system, with more than 90,000 systems and over 32 billion miles now on the road. A new member of the OnGuard family to be made available to medium- and heavy-duty trucks in 2016 is OnGuardACTIVE, which warns and brakes when detecting stationary objects, to mitigate or possibly avoid a potential accident. (From a press release on September 3, 2015)