(Adds earnings details, outlook)
CHICAGO, Nov 13 (Reuters) - Auto parts maker ArvinMeritor Inc. on Thursday said its quarterly earnings fell, hurt by higher costs for new product launches.
The Troy, Michigan-based supplier, which is waging a hostile takeover bid for larger rival Dana Corp. , said net income in the fourth quarter ended Sept. 30 declined to $33 million, or 48 cents a share, from $41 million, or 61 cents a share, a year ago. Net income in the latest quarter included a charge of 6 cents a share for an accounting rule change.
Sales rose 13 percent to $1.98 billion, but would have fallen 1 percent excluding acquisitions and the impact of the weaker dollar, ArvinMeritor said. Sales declined by 3 percent in North America and Europe but rose more than 20 percent in the rest of the world, driven primarily by gains in Asia.
The U.S. auto industry is struggling amid stiff global competition and production overcapacity.
ArvinMeritor said it would respond to the tough market conditions with further restructuring of its work force and facilities.
The maker of truck axles, brakes and transmissions and auto exhaust and suspension systems reaffirmed its earnings guidance for the first quarter of 25 cents to 30 cents a share in the first quarter on sales of $2 billion. For the full year 2004, it forecast earnings in a range of $2.20 to $2.40 a share.