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CHICAGO, Nov 13 (Reuters) - Auto parts maker ArvinMeritor Inc. on Thursday said quarterly earnings fell, bruised by higher steel prices, product-launch costs and restructuring expenses.
But results beat the company's lowered profit forecast, and shares rose nearly 6 percent on the New York Stock Exchange.
Troy, Michigan-based ArvinMeritor, which is waging a hostile takeover bid for larger rival Dana Corp. , said net income in the fiscal 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.
The company had previously said it expected to earn between 48 cents and 51 cents a share before the impact of the accounting rule change.
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 also stood by its earnings forecast of 25 cents to 30 cents a share, on sales of $2 billion, in the first quarter, and $2.20 to $2.40 a share for full-year 2004.
ArvinMeritor said sales in the fourth quarter rose 13 percent to $1.98 billion, but would have fallen 1 percent excluding acquisitions and the impact of the weaker dollar.
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.
Shares of ArvinMeritor were up $1.04 or 5.9 percent at $18.53 on the New York Stock Exchange on Thursday morning.