ArvinMeritor -- Financial News

ArvinMeritor Reports Fourth-Quarter and Fiscal Year 2009 Results

11/10/2009 8:20:33 AM

Sees Improving Conditions in Global Markets

TROY, Mich. (Nov. 10, 2009) � ArvinMeritor, Inc. (NYSE: ARM) today reported financial results for its fourth quarter and full fiscal year ended Sept. 30, 2009.

Fourth-Quarter Highlights

Fourth-quarter sales were $984 million, approximately a four percent increase from the third quarter of fiscal year 2009; down from $1.5 billion in the fourth quarter of fiscal year 2008.
On a GAAP basis, loss from continuing operations was $49 million for the fourth quarter, or a loss of $0.68 per diluted share, compared to a loss from continuing operations of $160 million, or $2.22 per diluted share, in the same period last year.
Fourth-quarter EBITDA from continuing operations, before special items, was $40 million, approximately a 43-percent increase from the third quarter of fiscal year 2009, down from $87 million in the fourth quarter of fiscal year 2008.
Cash flow from operations was $46 million compared to $157 million in the same period last year.
Free cash flow (cash flow from operations, net of capital expenditures) was $22 million in the fourth quarter compared to free cash flow of $103 million in the fourth quarter of fiscal year 2008.
Complied with all debt covenants.
Entered into new two-year U.S. Receivables Securitization Agreement.

Fourth-Quarter Results 2009
�We are proud of our performance in the fourth quarter and the 2009 fiscal year,� said Chairman, CEO and President Chip McClure. �Our team has not only generated positive free cash flow for two consecutive quarters, we�ve also reported cost savings in our commercial vehicle businesses of $195 million, complied with all debt covenants, and completed various other actions that we believe will strengthen the company as we benefit from improving conditions in global markets � particularly in China, India and Brazil,� said McClure.

For the fourth quarter of fiscal year 2009, ArvinMeritor posted sales of $984 million, down thirty-six percent from the same period last year. This decrease in sales was primarily due to continued weakness in the global markets. As compared to the third quarter of fiscal year 2009, sales in the fourth quarter increased four percent as markets began to show signs of a recovery.

EBITDA from continuing operations (which excludes the wheels business), before special items, was $40 million, compared to $87 million in the fourth quarter of fiscal year 2008. EBITDA from continuing operations, before special items, increased 43 percent in the fourth quarter of fiscal year 2009 from the third quarter of fiscal year 2009. EBITDA margin from continuing operations, before special items, was 4.1 percent in the fourth quarter, down from 5.7 percent in the same period last year.

Loss from continuing operations, on a GAAP basis, was $49 million or $0.68 per diluted share, compared to a loss from continuing operations of $160 million or $2.22 per diluted share in the prior year.

Loss from continuing operations during the fourth quarter of fiscal year 2009, before special items, was $20 million, or $0.28 per diluted share, compared to income from continuing operations, before special items, of $26 million, or $0.35 per diluted share, a year ago. The loss from continuing operations, before special items, was driven by incremental tax expenses during the quarter due to the inability to recognize the tax benefit of losses in certain countries.

Free cash flow was $22 million in the fourth quarter compared to free cash flow of $103 million in the fourth quarter of fiscal year 2008. The company had $95 million in cash balances and an unutilized commitment of $611 million under its revolving credit facility as of Sept. 30, 2009.

Fiscal Year 2009 Results

Sales from continuing operations for fiscal year 2009 were $4.1 billion, down 36 percent from fiscal year 2008.
On a GAAP basis, net loss was $1,212 million or a loss of $16.72 per diluted share in fiscal year 2009.
On a GAAP basis, loss per diluted share from continuing operations was $14.86 in fiscal year 2009, compared to a loss of $1.60 per diluted share in fiscal year 2008.
Loss per share from continuing operations, before special items, was $1.32 per diluted share in fiscal year 2009, compared to income from continuing operations, before special items, of $1.11 per diluted share in fiscal year 2008.
Free cash outflow (cash outflow from operations, net of capital expenditures) of $429 million for the full fiscal year.

�Our team remained focused and delivered on our 2009 priorities, while simultaneously managing the company through a global recession that affected all of our segments and customers worldwide,� said McClure. �As we transform into a commercial vehicle and industrial company, we believe the results we demonstrated in each of these areas will make ArvinMeritor a leaner, more efficient organization well-positioned for future growth.�

Accelerate restructuring and other cost reductions

Achieved cost savings of $195 million in our core businesses for fiscal year 2009 due to swift and preemptive actions including workforce and temporary salary reductions; selective reductions in capital spending; extended manufacturing shutdowns; elimination of training programs; suspension of the quarterly dividend and elimination of all non-critical discretionary spending. The company also announced the closure of its Carrollton, Ky. assembly, machining and casting operation and the Tilbury, Ontario, Canada braking systems facility.

Continue operational performance improvements

Further implemented production system methodology; optimized manufacturing footprint; lowered inventory; strategically focused capital spending on core processes to lessen dependency on layered capacity; and maintained focus on direct material optimization activities � with more than 900 of approximately 1,700 initiatives implemented.

Complete LVS separation

Completed the sale of the company�s entire ownership interest in Gabriel de Venezuela and Meritor Suspension Systems Company (finalized in October 2009) joint ventures; and sold both the Wheels business and Gabriel Ride Control Products North America, thus reducing the company�s overall light vehicle business to 25 percent of total sales at the conclusion of fiscal year 2009.

Continue to grow high-margin segments

Working with Lockheed Martin Systems Integration and BAE Systems U.S. Combat Systems on a technology demonstrator contract for the Joint Light Tactical Vehicle (JLTV) program; began production of Navistar MXT for British Ministry of Defense; added two key product families to expanding aftermarket portfolio for commercial vehicles including remanufactured Allison automatic transmissions and all-makes power steering gears and pumps.

Innovate and strengthen technology

Introduced MXL greaseable drivelines for linehaul customers; launched PlatinumShield� coating for both aftermarket and OE brake applications; completed internal integration of smart systems� technology to further incorporate controls and electronics into the commercial vehicle advanced engineering group; opened technical center in Bangalore, India; preparing to launch MT-14X tandem axle in North America in 2010.

Business Segments
ArvinMeritor has revised its reporting segments following the recent divestitures of several light vehicle businesses. For continuing operations, the company will now report results as defined within Commercial Truck, Industrial, Aftermarket & Trailer and Light Vehicle Systems. Of these four segments, Commercial Truck, Industrial, and Aftermarket & Trailer are considered core to ArvinMeritor.

Commercial Truck

Supplies drivetrain systems and components, including axles, drivelines, braking and suspension systems, primarily for medium and heavy duty trucks in North America, South America and Europe.

Industrial

Supplies drivetrain systems including axles, brakes, drivelines and suspensions for off-highway, military, construction, bus and coach, fire and emergency, and other industrial applications. This segment also includes the company�s business in Asia Pacific, including all on- and off-highway activities.

Aftermarket & Trailer

Supplies axles, brakes, suspension parts and other replacement and remanufactured parts, including transmissions, to commercial vehicle aftermarket customers. Also supplies a wide variety of undercarriage products and systems for trailer applications.

Light Vehicle Systems

Supplies primarily roof and door systems for passenger cars to original equipment manufacturers; also includes company�s remaining Chassis operations.

2010 Priorities
ArvinMeritor has defined six key priorities for fiscal year 2010. The company believes it is imperative to execute well in each of these areas and has developed specific action plans to achieve strong results.

Remain focused on rigorous cost management to realize improved operating leverage.
Continue transformation to focus the company on global commercial vehicle and industrial markets.
Successfully execute as global markets recover.
Drive innovation � accelerating new products and advanced fuel efficient technologies.
Maintain focus on sustainable profitable growth.
Continued focus on balance sheet management.

Outlook for 2010
The company�s financial guidance for the first quarter of fiscal year 2010 is for expected results from continuing operations, which includes all four of ArvinMeritor�s current segments. For the first quarter of fiscal year 2010 (compared to the fourth fiscal quarter of 2009), the company anticipates:

Revenue to be higher.
EBITDA, before special items, to be higher.
Income before taxes, before special items, to be higher.

In addition, on an absolute basis, the company anticipates:

Free cash flow, before factoring and restructuring, to be slightly negative.
Free cash flow to be around breakeven.

For fiscal year 2010, ArvinMeritor expects to report results in the following ranges for capital expenditures, interest expense, cash income taxes and income tax expense.

Capital expenditures in the range of $90 million to $110 million.
Interest expense to be in the range of $95 million to $110 million.
Cash income taxes to be in the range of $25 million to $50 million.
Income tax expense, before special items, to be in the range of $40 million to $60 million.

�With the steps we have taken to manage costs � in addition to our efforts to secure new multi-year contracts, develop advanced solutions for our customers, and focus talent and resources on strategic segments of our business � we believe we are on track to benefit from future recoveries in the global markets,� said McClure.

Fourth-Quarter and Fiscal Year 2009 Results Conference Call
ArvinMeritor will host a telephone conference call and Web cast to discuss the company�s full-year and fourth-quarter results for fiscal year 2009 on Tuesday, Nov. 10, 2009, at 9 a.m. (ET).

To participate, call (617) 213-4837 ten minutes prior to the start of the call. Please reference participant pass code 85768695 when dialing in. Investors can also listen to the conference call in real time � or the recorded version for 90 days afterward� by visiting www.arvinmeritor.com.

A replay of the call will be available from Noon on Nov. 10, to 11:59 p.m. Nov. 17, 2009, by calling (888) 286-8010 (within the United States) or (617) 801-6888 for international calls. Please refer to replay pass code number 45056962.

The company�s fourth-quarter and full-year financial results will be released prior to the conference call and Web cast. The news release will be issued through PR Newswire and First Call, and will be available on the company�s Web site.

To access the listen-only audio Web cast, visit the ArvinMeritor Web site at www.arvinmeritor.com and select the Web cast link from the home page or the investor page.

About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for the transportation and industrial sectors. The company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For important information about the company, visit ArvinMeritor�s Web site at http://www.arvinmeritor.com.

CONTACTS:
Media Inquiries
Lin Cummins
(248) 435-7112
linda.cummins@arvinmeritor.com

Investor Inquiries
Brett Penzkofer
(248) 435-9426
brett.penzkofer@arvinmeritor.com

Forward-Looking Statements
This press release contains statements relating to future results of the company (including certain projections and business trends) that are �forward-looking statements� as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as �believe,� �expect,� �anticipate,� �estimate,� �should,� �are likely to be,� �will� and similar expressions. There are risks and uncertainties relating to the company�s announced plans to divest the Body Systems business of LVS and any of the strategic options under which to pursue such divestiture. In the case of any sale of all or a portion of the business, these risks and uncertainties include the timing and certainty of completion of any sale, the terms upon which any purchase and sale agreement may be entered into (including potential substantial costs) and whether closing conditions (some of which may not be within the company�s control) will be met. In the case of any shut down of portions of the business, these risks and uncertainties include the amount of substantial severance and other payments as well as the length of time we will continue to have to operate the business, which is likely to be longer than in a sale scenario. There is also a risk of loss of customers of this business due to the uncertainty as to the future of this business. In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); whether our liquidity will be affected by declining vehicle production volumes in the future; availability and sharply rising cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of the company�s suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; the ability to achieve anticipated or continued cost savings from reduction actions; success and timing of potential divestitures; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company�s debt; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company�s debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

All earnings per share amounts are on a diluted basis. The company's fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters end on the Sundays nearest Dec. 31, March 31 and June 30. All year and quarter references relate to the company's fiscal year and fiscal quarters, unless otherwise stated.

Non-GAAP Measures
In addition to the results reported in accordance with accounting principles generally accepted in the United States (�GAAP�) included throughout this press release, the company has provided information regarding income or loss from continuing operations, diluted earnings per share and operating income before special items, which are non-GAAP financial measures. These non-GAAP measures are defined as reported income or loss from continuing operations, reported diluted earnings or loss per share, and operating income or loss plus or minus special items. Other non-GAAP financial measures include �EBITDA,� and �free cash flow.� EBITDA is defined as income or loss from continuing operations before interest, income taxes, depreciation and amortization and loss on sale of receivables. We use EBITDA as the primary basis to evaluate the performance of each of our reportable segments. Free cash flow represents net cash provided by operating activities, less capital expenditures.

Management believes that the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the company's financial position and results of operations. In particular, management believes that EBITDA is a meaningful measure of performance as it is commonly utilized by management and the investment community to analyze operating performance and entity valuation; and free cash flow is useful in analyzing the company�s ability to service and repay its debt. Further, management uses these non-GAAP measures for planning and forecasting in future periods.

These non-GAAP measures should not be considered a substitute for the reported results prepared in accordance with GAAP. EBITDA should not be considered as an alternative to net income as an indicator of our operating performance or to cash flows as a measure of liquidity. Free cash flow should not be considered a substitute for cash provided by operating activities, or other cash flow statement data prepared in accordance with GAAP, or as a measure of financial position or liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt or cash received from the divestitures of businesses or sales of other assets and thus does not reflect funds available for investment or other discretionary uses. These non-GAAP financial measures, as determined and presented by the company, may not be comparable to related or similarly titled measures reported by other companies.

Set forth on the following pages are reconciliations of these non-GAAP financial measures, if applicable, to the most directly comparable financial measures calculated and presented in accordance with GAAP.

�� ARVINMERITOR, INC.
��CONSOLIDATED STATEMENT OF OPERATIONS
��(Unaudited)
��(In millions, except per share amounts)

��Quarter Ended �Twelve Months Ended
��September 30, ��September 30,
��------------ ��------------
��2009 ��2008 ��2009 ��2008
��---- ��---- ��---- ��----
��Sales ��$984 �$1,531 ��$4,108 �$6,390
��Cost of sales ��(901) (1,389) ��(3,804) (5,828)
��---- �------ ��--- �------
��GROSS MARGIN ��83 ��142 ��304 ��562
��Selling, general and administrative ��(67) ��(110) ��(290) ��(415)
��Restructuring costs ��(4) ��- ��(80) ��(9)
��Asset impairments ��- ��- ��(223) ��-
��Other expense, net ��- ��(2) ��(1) ��(3)
��-- ��-- ��-- ��--
��OPERATING INCOME (LOSS) ��12 ��30 ��(290) ��135
��Equity in earnings of affiliates ��7 ��9 ��15 ��38
��Interest expense, net ��(21) ��(16) ��(86) ��(80)
��--- ��--- ��--- ��---
��INCOME (LOSS) BEFORE INCOME TAXES ��(2) ��23 ��(361) ��93
��Provision for income taxes ��(43) ��(182) ��(707) ��(197)
��Minority interests ��(4) ��(1) ��(9) ��(11)
��-- ��-- ��-- ��---
��LOSS FROM CONTINUING OPERATIONS ��(49) ��(160) ��(1,077) ��(115)
��INCOME (LOSS) FROM DISCONTINUED
��OPERATIONS ��37 ��7 ��(135) ��14
��-- ��- ��--- ��--
��NET LOSS ��$(12) �$(153) ��$(1,212) �$(101)
��==== ��===== ��======= ��=====

��DILUTED EARNINGS (LOSS) PER SHARE
��Continuing operations ��$(0.68) $(2.22) ��$(14.86) $(1.60)
��Discontinued operations ��0.51 ��0.10 ��(1.86) ��0.20
��---- ��---- ��--- ��----
��Diluted loss per share ��$(0.17) $(2.12) ��$(16.72) $(1.40)
��====== �====== ��======= �======

��Diluted average common shares
��outstanding ��72.7 ��72.2 ��72.5 ��72.1

��ARVINMERITOR, INC.
��CONSOLIDATED BALANCE SHEET
��(Unaudited, In millions)

��September 30, September 30,
��2009 ��2008
��---- ��----
��ASSETS:
��-------
��Cash and cash equivalents ��$95 ��$497
��Receivables, trade and other, net ��694 ��1,114
��Inventories ��374 ��623
��Other current assets ��97 ��218
��Assets of discontinued operations ��56 ��-
��Net property ��445 ��775
��Goodwill ��438 ��522
��Other assets ��309 ��925
��--- ��---
��TOTAL ASSETS ��$2,508 ��$4,674
��====== ��======

��LIABILITIES AND SHAREOWNERS' EQUITY (DEFICIT)
��---------------------------------------------
��Short-term debt ��$97 ��$240
��Accounts payable ��674 ��1,287
��Other current liabilities ��411 ��610
��Liabilities of discontinued operations ��107 ��-
��Long-term debt ��1,080 ��1,063
��Retirement benefits ��1,077 ��690
��Other liabilities ��310 ��247
��Minority interests ��29 ��75
��Shareowners' equity (deficit) ��(1,277) ��462
��------ ��---
��TOTAL LIABILITIES AND SHAREOWNERS' EQUITY (DEFICIT) �$2,508 ��$4,674
��====== ��======

��ARVINMERITOR, INC.
��CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
��(Unaudited, In millions)

��Twelve Months Ended
��September 30,
��-------------
��2009 ��2008
��---- ��----
��OPERATING ACTIVITIES
��Loss from continuing operations ��$(1,077) ��$(115)
��Adjustments to loss from continuing operations:
��Depreciation and amortization ��81 ��120
��Asset impairment charges ��223 ��-
��Deferred income tax expense ��679 ��103
��Restructuring costs, net of payments ��27 ��(27)
��Pension and retiree medical expense ��74 ��99
��Other adjustments to loss from continuing
��operations, net ��30 ��3
��Pension and retiree medical contributions ��(100) ��(77)
��Proceeds from terminations of interest rate swaps ��- ��28
��Changes in off-balance sheet receivable securitization
��and factoring ��(275) ��120
��Changes in assets and liabilities ��59 ��(74)
��-- ��---
��Cash flows provided by (used for) continuing operations (279) ��180
��Cash flows used for discontinued operations, net ��(16) ��(17)
��--- ��---
��CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES ��(295) ��163
��---- ��---
��INVESTING ACTIVITIES
��Capital expenditures ��(111) ��(138)
��Acquisitions of businesses and investments, net of
��cash acquired ��- ��(60)
��Other investing activities ��10 ��14
��Net investing cash flows provided by discontinued
��operations ��115 ��24
��--- ��--
��CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES ��14 ��(160)
��-- ��----
��FINANCING ACTIVITIES
��Borrowings (payments) on prior accounts receivable
��securitization program ��(111) ��111
��Borrowings on new accounts receivable securitization
��program ��83 ��-
��Borrowings on revolving credit facility, net ��28 ��-
��Repayment of notes ��(83) ��(5)
��Borrowings (payments) on lines of credit and
��other, net ��(9) ��13
��-- ��--
��Net change in debt ��(92) ��119
��Debt issuance and extinguishment costs ��- ��(6)
��Cash dividends ��(8) ��(29)
��Net financing cash flows provided by (used for)
��discontinued operations ��(6) ��13
��-- ��--
��CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES ��(106) ��97
��---- ��--
��EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE
��RATES ON CASH AND CASH EQUIVALENTS ��(15) ��(12)
��--- ��---
��CHANGE IN CASH AND CASH EQUIVALENTS ��(402) ��88
��CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ��497 ��409
��--- ��---
��CASH AND CASH EQUIVALENTS AT END OF PERIOD ��$95 ��$497
��=== ��====

��ARVINMERITOR, INC.
��CONSOLIDATED BUSINESS SEGMENT INFORMATION
��(Unaudited, In millions)

��Quarter Ended �Twelve Months Ended
��September 30, ��September 30,
��------------- ��-------------
��2009 ��2008 ��2009 ��2008
��---- ��---- ��---- ��----
��Sales:
��Commercial Truck ��$325 ��$690 ��$1,566 ��$2,922
��Industrial ��220 ��290 ��888 ��1,117
��Aftermarket & Trailer ��219 ��307 ��954 ��1,183
��Light Vehicle Systems ��288 ��340 ��1,034 ��1,571
��Intersegment Sales ��(68) ��(96) ��(334) ��(403)
��--- ��--- ��---- ��----
��Total sales ��$984 ��$1,531 ��$4,108 ��$6,390
��==== ��====== ��====== ��======
��EBITDA:
��Commercial Truck ��$(2) ��$28 ��$(98) ��$117
��Industrial ��24 ��36 ��124 ��128
��Aftermarket & Trailer ��17 ��34 ��88 ��110
��Light Vehicle Systems ��2 ��4 ��(281) ��5
��- ��- ��---- ��-
��Total Segment EBITDA ��41 ��102 ��(167) ��360
��Unallocated Corporate Costs ��(5) ��(26) ��(29) ��(56)
��-- ��--- ��--- ��---
��Total EBITDA ��36 ��76 ��(196) ��304
��Loss on Sale of Receivables ��- ��(7) ��(7) ��(22)
��Depreciation and Amortization ��(21) ��(31) ��(81) ��(120)
��Interest Expense, Net ��(21) ��(16) ��(86) ��(80)
��Provision for Income Taxes ��(43) ��(182) ��(707) ��(197)
��--- ��---- ��---- ��----
��Loss from Continuing Operations ��$(49) ��$(160) �$(1,077) ��$(115)
��==== ��===== ��======= ��=====

��ARVINMERITOR, INC.
��SELECTED FINANCIAL INFORMATION - RECONCILIATION
��Non-GAAP
��(Unaudited)
��(In millions, except per share amounts)

��Q4 FY 09
��Income ��Before
��Q4 FY 09 ��Tax �Special
��Reported �Restructuring Charges ��Items
��-------- �------------- ------- �-------
��Sales ��$984 ��$ - ��$ - ��$984
��Gross Margin ��83 ��- ��- ��83
��Operating Income ��12 ��4 ��- ��16
��Loss from Continuing Operations ��(49) ��4 ��25 ��(20)
��Diluted Loss Per Share -
��Continuing Operations ��$(0.68) ��$0.06 ��$0.34 ��$(0.28)

��Segment EBITDA:
��Commercial Truck ��$(2) ��$3 ��$ - ��$1
��Industrial ��24 ��- ��- ��24
��Aftermarket & Trailer ��17 ��1 ��- ��18
��Light Vehicle Systems ��2 ��(2) ��- ��-
��- ��-- ��- ��-
��Total Segment EBITDA ��$41 ��$2 ��$ - ��$43

��Segment EBITDA Margins
��Commercial Truck ��(0.6)% ��0.3%
��Industrial ��10.9% ��10.9%
��Aftermarket & Trailer ��7.8% ��8.2%
��Light Vehicle Systems ��0.7% ��0.0%
��Total Segment EBITDA Margins ��4.2% ��4.4%

��ARVINMERITOR, INC.
��SELECTED FINANCIAL INFORMATION - RECONCILIATION
��Non-GAAP
��(Unaudited)
��(In millions, except per share amounts)

��Non-cash ��Q4 FY 08
��LVS ��Income ��Tax �Before
��Q4 FY 08 ��Separation ��Tax ��Rate Special
��Reported Restructuring �Costs �Charges Impact ��Items
��-------- ------------- �----- �------- ------ -------
��Sales ��$1,531 ��$ - ��$ - ��$ - ��$ - ��$1,531
��Gross Margin ��142 ��- ��- ��- ��- ��142
��Operating Income ��30 ��- ��11 ��- ��- ��41
��Income from Continuing
��Operations ��(160) ��- ��11 ��183 ��(8) ��26
��Diluted Income (Loss)
��Per Share - Continuing
��Operations ��$(2.22) ��$ - ��$0.15 ��$2.53 �$(0.11) �$ 0.35

��Segment EBITDA:
��Commercial Truck ��$28 ��$(1) ��$ - ��$ - ��$ - ��$27
��Industrial ��36 ��- ��- ��- ��- ��36
��Aftermarket & Trailer ��34 ��- ��- ��- ��- ��34
��Light Vehicle Systems ��4 ��1 ��- ��- ��- ��5
��- ��- ��- ��- ��- ��-
��Total Segment EBITDA ��$102 ��$ - ��$ - ��$ - ��$ - ��$102
��==== ��=== ��=== ��=== ��=== ��====

��Segment EBITDA Margins
��Commercial Truck ��4.1% ��3.9%
��Industrial ��12.4% ��12.4%
��Aftermarket & Trailer �11.1% ��11.1%
��Light Vehicle Systems ��1.2% ��1.5%
��Total Segment EBITDA
��Margins ��6.7% ��6.7%

��ARVINMERITOR, INC.
��SELECTED FINANCIAL INFORMATION - RECONCILIATION
��Non-GAAP
��(Unaudited)
��(In millions, except per share amounts)

��YTD
��LVS ��FY 09
��Separa- ��Income �Before
��YTD FY 09 Restruc- tion ��Tax Special
��Reported �turing Costs Impairments Charges ��Items
��-------- �------ ----- ----------- ------- -------
��Sales ��$4,108 ��$ - ��$ - ��$ - ��$ - �$4,108
��Gross Margin ��304 ��- ��- ��- ��- ��304
��Operating Income (Loss) ��(290) ��80 ��9 ��223 ��- ��22
��Loss from Continuing
��Operations ��(1,077) ��68 ��9 ��216 ��688 ��(96)
��Diluted Loss Per Share -
��Continuing Operations ��$(14.86) $0.94 �$0.13 ��$2.98 ��$9.49 �$(1.32)

��Segment EBITDA:
��Commercial Truck ��$(98) ��$52 ��$ - ��$8 ��$ - ��$(38)
��Industrial ��124 ��2 ��- ��- ��- ��126
��Aftermarket & Trailer ��88 ��1 ��- ��- ��- ��89
��Light Vehicle Systems ��(281) ��19 ��- ��209 ��- ��(53)
��---- ��-- ��- ��--- ��- ��---
��Total Segment EBITDA ��$(167) ��$74 ��$ - ��$217 ��$ - ��$124

��Segment EBITDA Margins
��Commercial Truck ��(6.3)% ��(2.4)%
��Industrial ��14.0% ��14.2%
��Aftermarket & Trailer ��9.2% ��9.3%
��Light Vehicle Systems ��(27.2)% ��(5.1)%
��Total Segment EBITDA
��Margins ��(4.1)% ��3.0%

��ARVINMERITOR, INC.
��SELECTED FINANCIAL INFORMATION - RECONCILIATION
��Non-GAAP
��(Unaudited)
��(In millions, except per share amounts)

��Non-cash ��Q4 FY 08
��LVS ��Income ��Tax �Before
��YTD FY 08 ��Separation ��Tax ��Rate Special
��Reported Restructuring �Costs �Charges Impact ��Items
��-------- ------------- �----- �------- ------ -------
��Sales ��$6,390 ��$ - ��$ - ��$ - ��$ - �$6,390
��Gross Margin ��562 ��- ��- ��- ��- ��562
��Operating Income ��135 ��9 ��17 ��- ��- ��161
��Income (Loss) from
��Continuing Operations ��(115) ��6 ��17 ��183 ��(10) ��81
��Diluted Income (Loss)
��Per Share - Continuing
��Operations ��$(1.60) ��$0.08 ��$0.23 ��$2.54 ��$(0.14) �$1.11

��Segment EBITDA:
��Commercial Truck ��$117 ��$(1) ��$ - ��$ - ��$ - ��$116
��Industrial ��128 ��- ��- ��- ��- ��128
��Aftermarket & Trailer ��110 ��- ��- ��- ��- ��110
��Light Vehicle Systems ��5 ��10 ��- ��- ��- ��15
��- ��-- ��-- ��-- ��-- ��--
��Total Segment EBITDA ��$360 ��$9 ��$ - ��$ - ��$ - ��$369
��==== ��== ��=== ��=== ��=== ��====

��Segment EBITDA Margins
��Commercial Truck ��4.0% ��4.0%
��Industrial ��11.5% ��11.5%
��Aftermarket & Trailer ��9.3% ��9.3%
��Light Vehicle Systems ��0.3% ��1.0%
��Total Segment EBITDA
��Margins ��5.6% ��5.8%

��ARVINMERITOR, INC.
��EBITDA BEFORE SPECIAL ITEMS RECONCILIATION
��Non-GAAP
��(Unaudited, in millions)

��Quarter Ended
��September 30,
��-------------
��2009 ��2008
��---- ��----
��Total EBITDA - Before Special Items ��$40 ��$87
��Restructuring Costs, net of minority interests ��(4) ��-
��LVS Separation Costs ��- ��(11)
��Loss on Sale of Receivables ��- ��(7)
��Depreciation and Amortization ��(21) ��(31)
��Interest Expense, Net ��(21) ��(16)
��Provision for Income Taxes ��(43) ��(182)
��--- ��----
��Loss From Continuing Operations ��$(49) ��$(160)
��==== ��=====

��ARVINMERITOR, INC.
��FREE CASH FLOW - RECONCILIATION
��Non-GAAP
��(Unaudited, in millions)

��Quarter Ended �Twelve Months Ended
��September 30, ��September 30,
��------------ ��-------------
��2009 ��2008 ��2009 ��2008
��---- ��---- ��---- ��----
��Cash flows provided by (used for)
��continuing operations ��$27 ��$127 ��$(279) ��$180
��Capital expenditures -
��continuing operations ��(17) ��(48) ��(111) ��(138)
��--- ��--- ��---- ��----
��Free cash flows provided by
��(used for) continuing operations ��10 ��79 ��(390) ��42

��Cash flows provided by (used for)
��Discontinued operations ��19 ��30 ��(16) ��(17)
��Capital expenditures -
��discontinued operations ��(7) ��(6) ��(23) ��(34)
��-- ��-- ��--- ��---
��Cash flows provided by (used for)
��Discontinued operations ��12 ��24 ��(39) ��(51)

��Free cash flow - full company ��$22 ��$103 ��$(429) ��$(9)
��=== ��==== ��===== ��===

ArvinMeritor Hosts Conference Call and Web Cast to Present Fourth-Quarter and Full-Year Earnings for Fiscal Year 2009

10/29/2009 1:03:27 PM

TROY, Mich. (Oct. 13, 2009) � ArvinMeritor, Inc. (NYSE: ARM) will host a telephone conference call and Web cast to discuss the company�s fourth-quarter and full-year results for fiscal year 2009 on Tuesday, Nov. 10, 2009, at 9 a.m. (ET).

To access the listen-only audio Web cast, visit the ArvinMeritor Web site at www.arvinmeritor.com and select the Web cast link from the home page or the investor page.

About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for the transportation and industrial sectors. The company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.arvinmeritor.com.

Contacts:
Media Inquiries
Krista Sohm
(248) 435-7115
krista.sohm@arvinmeritor.com

Investor Inquiries
Brett Penzkofer
(248) 435-9426
brett.penzkofer@arvinmeritor.com

ArvinMeritor to Present at Deutsche Bank Leveraged Finance Conference

9/23/2009 3:31:56 PM

TROY, Mich. (Sept. 23, 2009) � ArvinMeritor, Inc. (NYSE:ARM), a Tier One supplier to the global transportation and industry sectors, today announced that Jay Craig, senior vice president and chief financial officer, will participate in the Deutsche Bank Leveraged Finance Conference on Wednesday, Sept. 30, at The Phoenician in Scottsdale, Ariz.

A live Webcast of the company�s presentation will be available at 7:50 p.m. (ET) on Sept. 30, on the company�s Web site, www.arvinmeritor.com. An audio replay will be accessible on ArvinMeritor�s Web site, approximately one hour following the presentation.

About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for the transportation and industrial sectors. The company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.arvinmeritor.com.

CONTACTS:
Media Inquiries
Lin Cummins
(248) 435-7112
linda.cummins@arvinmeritor.com

Investor Inquiries
Brett Penzkofer
(248) 435-9426
brett.penzkofer@arvinmeritor.com

ArvinMeritor Completes Sale of Wheels Business to Iochpe-Maxion S.A.

9/21/2009 4:32:16 PM

TROY, Mich., (Sep. 21, 2009) � ArvinMeritor, Inc. (NYSE: ARM) today announced that it has completed the previously announced sale of its Wheels business � formerly a division of the company�s Light Vehicle Systems segment � to Iochpe-Maxion S.A., a Brazilian producer of wheels and frames for commercial vehicles, railway freight cars and castings, for approximately $180 million. The company expects to use the net proceeds of $169 million from the sale to reduce outstanding balances on its revolving credit facility in advance of its fourth fiscal quarter end. The company reiterated that it expects to remain in compliance with its financial covenant in the fourth quarter.

�We are pleased to have completed this transaction, which represents another step forward in our transformation to becoming a global commercial vehicle and industrial company with a focus on expanding our leadership position in both the on- and off-highway equipment and machinery markets,� said Chip McClure, ArvinMeritor�s chairman, CEO and president. �We look forward to using the proceeds from this sale to further strengthen our balance sheet and to invest in areas that will help us grow our core business and deliver value to our shareholders. We would like to thank the entire Wheels team for their dedication and hard work over many years and wish them much success in the future.�

The company will file a Form 8-K with the Securities and Exchange Commission that further describes the details of the transaction at www.sec.gov.

About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for the transportation and industrial sectors. The company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.arvinmeritor.com.

CONTACTS:
Media Inquiries
Lin Cummins
(248) 435-7112
linda.cummins@arvinmeritor.com

Investor Inquiries
Brett Penzkofer
(248) 435-9426
brett.penzkofer@arvinmeritor.com

Forward-Looking Statements
This press release contains statements relating to future results of the company (including certain projections and business trends) that are �forward-looking statements� as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as �believe,� �expect,� �anticipate,� �estimate,� �should,� �are likely to be,� �will� and similar expressions. There are risks and uncertainties relating to our ability to obtain any needed waiver or amendment to our credit agreement; our ability to achieve anticipated or continued cost savings from reduction actions; and our ability to execute the Company�s announced plans for the Body Systems and Chassis Systems businesses of LVS, including the timing and certainty of completion or the terms upon which any sale agreement with respect to any portion of the business may be made and the amount of any exit costs. In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; whether we will have sufficient liquidity as we continue to be affected by declining vehicle production volumes; the financial condition of the company�s suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company�s debt; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and rising cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company�s debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

ArvinMeritor Enters into New, Two-Year U.S. Receivable Securitization Agreement

9/9/2009 8:48:56 AM

TROY, Mich., (Sep. 8, 2009) � ArvinMeritor, Inc. (NYSE: ARM) today announced that the company has entered into a new, two-year U.S. receivables financing arrangement (the �New Facility�). Under the terms of the New Facility, ArvinMeritor�s subsidiary, ArvinMeritor Receivables Corporation (�ARC�), will purchase eligible accounts receivable from certain other ArvinMeritor subsidiaries (the �Originators�) and will borrow under a credit facility funded by multiple lenders. ARC�s borrowings will be secured by an interest in the purchased receivables, and ARC will use the proceeds of the borrowings to fund purchases of receivables from the Originators. The purchased receivables under the New Facility are expected to be substantially similar to those under the facility it replaces.

Under the New Facility, ARC will be able to borrow monies from a bank group led by GMAC Commercial Finance LLC in an aggregate principal amount outstanding at any one time of not to exceed $105 million. This amount may be increased at the request of ARC and with the consent of the Agent to $125 million upon the identification of lenders that may be willing to provide such additional funding. As of the closing date, the borrowing availability under the New Facility is expected to exceed the availability under the facility it replaces.

"The new facility demonstrates ArvinMeritor�s continued focus on our liquidity," said Chip McClure, chairman, CEO and president. "We appreciate the support of the New Facility lenders, and look forward to continuing to implement our strategic initiatives that are designed to drive growth."

The company filed today a Form 8-K with the Securities and Exchange Commission that further describes the New Facility. To review the company�s filing, visit www.sec.gov.

About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.arvinmeritor.com.

CONTACTS:
Media Inquiries
Lin Cummins
(248) 435-7112
linda.cummins@arvinmeritor.com

Investor Inquiries
Brett Penzkofer
(248) 435-9426
brett.penzkofer@arvinmeritor.com

Forward-Looking Statements
This press release contains statements relating to future results of the company (including certain projections and business trends) that are �forward-looking statements� as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as �believe,� �expect,� �anticipate,� �estimate,� �should,� �are likely to be,� �will� and similar expressions. There are risks and uncertainties relating to our ability to obtain any needed waiver or amendment to our credit agreement; our ability to complete the sale of the Wheels business, including with respect to the competition filings required and other closing conditions; our ability to achieve anticipated or continued cost savings from reduction actions; and our ability to execute the Company�s announced plans for the Body Systems and Chassis Systems businesses of LVS, including the timing and certainty of completion or the terms upon which any sale agreement with respect to any portion of the business may be made and the amount of any exit costs. In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; whether we will have sufficient liquidity as we continue to be affected by declining vehicle production volumes; the financial condition of the company�s suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company�s debt; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and rising cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company�s debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

ArvinMeritor Appoints Brett Penzkofer Senior Director of Investor Relations

8/7/2009 8:01:18 AM

TROY, Mich. (Aug. 7, 2009) � ArvinMeritor, Inc. (NYSE: ARM) today announced that Brett Penzkofer is named senior director of Investor Relations for the company, effective immediately.

In this position, Brett is responsible for global investor strategy, which encompasses developing and communicating ArvinMeritor�s financial fundamentals and strategic vision to the company�s shareowners and financial constituents. He previously held senior director positions in Global Finance Transformation and Financial Planning and Analysis.

�Brett�s financial insight and understanding of our industry, business and global operations will enable him to very effectively communicate with our investors,� said Mary Lehmann, senior vice president, Strategic Initiatives. �We�re pleased to add Brett to our team, as he will ensure our investor relations programs continue to be of the highest quality.�

Prior to joining ArvinMeritor in 2006, Brett held several management positions in Finance at DaimlerChrysler. He is a Certified Management Accountant (CMA) and Certified in Financial Management (CFM) through the Institute of Management Accountants.

Brett holds a Bachelor of Arts in Social Sciences from Michigan State University, and a Master of Business Administration in Finance and Accounting from Wayne State University.

About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company marks its centennial anniversary in 2009, celebrating a long history of �forward thinking.� ArvinMeritor serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: www.arvinmeritor.com/.

CONTACTS:
Media Inquiries:
Lin Cummins
(248) 435-7112
Linda.Cummins@arvinmeritor.com

Investor Inquiries:
Mary Lehmann
(248) 435-1444
Mary.Lehmann@arvinmeritor.com

ArvinMeritor Reports Third-Quarter Fiscal Year 2009 Results

8/4/2009 8:57:18 AM

Announces Sale of Wheels Business Unit

TROY, Mich. (Aug. 4, 2009) � ArvinMeritor, Inc. (NYSE: ARM) today reported financial results for its third quarter ended June 30, 2009.

Highlights

Cash flow from operations was $99 million compared to $114 million in the same period last year.
Free cash flow was $73 million compared to $59 million in the same period last year.
Fully complied with all covenants in its revolving credit facility in June; the debt to EBITDA covenant was met with a comfortable cushion.
Signed agreements to divest the majority of its Chassis businesses, and closed selective sales during the quarter.
Signed an agreement on Aug. 4, 2009, to sell the Wheels business unit.
Awarded new axle business with Navistar and a premier bus manufacturer in China; executed multi-year agreement with Daimler Trucks North America.

�Although sales are down significantly, our performance this quarter demonstrates a continued diligence to improve ArvinMeritor�s liquidity position through proactive management of working capital, improved operational performance and ongoing cost reduction actions,� said Chairman, CEO and President Chip McClure. �With the completion of several divestitures, we moved closer to our objective of becoming a commercial vehicle company, enabling us to focus on expanding our leadership position in both on- and off-highway markets, as demonstrated by the new contracts we announced this quarter.�

Results for the Third-Quarter Fiscal Year 2009
In the third quarter of fiscal year 2009, ArvinMeritor posted sales of $993 million, down from $1.9 billion, or 47 percent, from the same period last year (42 percent excluding effects of foreign currency). This decrease in sales is due to significantly lower production volumes in most original equipment markets globally.

Net loss was $162 million, or $2.23 per diluted share, compared to net income of $44 million or $0.60 per diluted share, in the third quarter of fiscal year 2008. Net loss includes losses from discontinued operations of $134 million or $1.84 per diluted share, primarily related to non-cash, after-tax charges of approximately $90 million associated with the divestiture of several of the company�s chassis businesses.

EBITDA from continuing operations, before special items, was $33 million, down $79 million or 71 percent, from the same period last year. Despite sales being down nearly 50 percent in our core Commercial Vehicle Systems business, EBITDA margins in that business only declined by approximately 30 percent, due to operational improvements, the impact of restructuring and other cost reduction initiatives, and positive material performance.

Loss from continuing operations, on a GAAP basis, was $28 million or $0.39 per diluted share, compared to income from continuing operations of $48 million or $0.66 per diluted share in the prior year.

Loss from continuing operations, before special items, was $18 million or $0.25 per diluted share, compared to income from continuing operations, before special items, of $54 million or $0.74 per diluted share a year ago. Special items for the quarter primarily relate to restructuring charges and non-cash charges for a valuation reserve against certain deferred tax assets.

Free cash flow was $73 million in the third quarter, an increase of $211 million from the second fiscal quarter of this year. This increase is due to continued reductions in working capital levels, primarily in accounts receivable and inventory.

Divestiture of Wheels Business
On Aug. 4, 2009, ArvinMeritor entered into a purchase and sale agreement to divest the entirety of its Wheels business � previously a division of the company�s LVS segment � to Iochpe-Maxion, S. A. (Buyer), a Brazilian producer of wheels and frames for commercial vehicles, railway freight cars and castings. The base purchase price is $180 million; actual closing proceeds may vary depending on taxes and the net cash or debt position of the business at closing.

The closing and funding of the entire adjusted purchase price is expected to be on or before Sept. 23, 2009, prior to the end of ArvinMeritor�s fourth fiscal quarter. The agreement also requires certain true-up payments for working capital and other miscellaneous adjustments, on a post-closing basis.

The completion of the transaction is subject to several conditions, including the clearance or waiver of applicable competition law waiting periods in the United States and Mexico, and the fulfillment of Buyer�s committed financing. The Buyer will be pursuing corporate approvals, which are required under Brazilian law.

Divestiture of Chassis Businesses
As previously announced, in the third quarter of fiscal year 2009, ArvinMeritor completed the sale of its 51-percent stake in Gabriel de Venezuela, substantially completed the sale of its Gabriel Ride Control Products North America business and entered into a binding letter of intent to sell its stake in Meritor Suspension Systems Company. All of these businesses are included in the company�s discontinued operations for the third quarter.

These transactions largely complete the divestiture of Chassis Systems, representing 72 percent of total Chassis revenue based on 2008 sales, including $117 million of pass-through sales, and 87 percent of value-added sales.

The remaining Chassis businesses operate near breakeven and primarily support the company�s suspension module assembly business which is expected to run-off over the next two years as various vehicle programs come to a conclusion.

New Business Wins
During the third quarter, ArvinMeritor announced a long-term supply agreement with Navistar. Effective July 13, Meritor axles are now in standard position on International� medium-duty trucks and IC Bus� brand school and commercial buses. In addition, ArvinMeritor gains additional standard axle positions on International�s heavy-duty trucks.

The company also completed a multi-year agreement with Daimler Trucks North America this quarter for the supply of axles, brakes and drivelines.

In Asia Pacific, ArvinMeritor signed a supply agreement with Yutong Group Co., Ltd., the largest producer of high-end buses and coaches in the China market, to supply drivetrain components for buses and coaches in China. Production under this agreement is expected to begin at the end of calendar year 2009.

Credit Line Covenant Compliance
ArvinMeritor was in compliance with the covenants in its revolving credit facility as of June 28, 2009. Stronger cash flow and improved regional cash efficiencies in the third quarter allowed the company to reduce usage of the revolver in the quarter by $145 million.

In addition, the company has identified actions that should allow it to meet its covenants at the September measurement date and is working diligently to implement those actions. These include executing the sale of Wheels and replacing the U.S. accounts receivable securitization program, as well as continued improvements in working capital. ArvinMeritor is in negotiations with potential lenders for a replacement to its US securitization program. Based on discussions with those lenders and progress to date, the company expects to complete a transaction in August 2009.

If the company is unable to complete these actions by the September measurement date, it is likely that ArvinMeritor will seek and obtain an amendment or waiver to its revolving credit line agreement.

Outlook
While market conditions remain depressed in North America and Europe, South America and Asia Pacific continue to show signs of improvement.

For the fourth quarter of fiscal year 2009 (compared to the third fiscal quarter of 2009), the company anticipates:

Revenue to be slightly lower, due largely to seasonal patterns
Loss per share, before special items, to be greater
Free cash flow, before factoring and restructuring, to be slightly negative
Total free cash flow to be negative

�While we anticipate market conditions will remain tough through our fourth fiscal quarter, we are taking appropriate actions that should help offset the impact and allow us to remain in compliance with our year-end credit line financial covenant,� said McClure. �We will continue to proactively manage working capital levels, execute key initiatives and reduce costs, while at the same time positioning the company for a recovery in our key markets.�

About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company marks its centennial anniversary in 2009, celebrating a long history of �forward thinking.� ArvinMeritor serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: www.arvinmeritor.com.

Non-GAAP Measures
In addition to the results reported in accordance with accounting principles generally accepted in the United States (�GAAP�) included throughout this press release, the company has provided information regarding income from continuing operations, diluted earnings per share and operating income before special items, which are non-GAAP financial measures. These non-GAAP measures are defined as reported income or loss from continuing operations, reported diluted earnings or loss per share, and operating income or loss plus or minus special items. Other non-GAAP financial measures include EBITDA and EBITDA, before special items, and free cash flow. EBITDA is defined as income (loss) from continuing operations before income taxes, depreciation and amortization and loss of sale on receivables. EBITDA, before special items, is defined as EBITDA, plus or minus special items. Free cash flow represents net cash provided by operating activities, less capital expenditures.

Management believes EBITDA is a meaningful measure of performance as it is commonly utilized by management and investors to analyze operating performance and entity valuation. Management, the investment community and the banking institutions routinely use EBITDA, together with other measures, to measure operating performance in our industry. Free cash flow is useful in analyzing the company�s ability to service and repay its debt. Further, management uses these non-GAAP measures for planning and forecasting in future periods.

These non-GAAP measures should not be considered a substitute for the reported results prepared in accordance with GAAP. EBITDA should not be considered as an alternative to net income as an indicator of our operating performance or to cash flows as a measure of liquidity. Free cash flow should not be considered a substitute for cash provided by operating activities or other cash flow statement data prepared in accordance with GAAP or as a measure of liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt or cash received from the divestitures or businesses or sales of other assets and thus does not reflect funds available for investment or other discretionary uses.

These non-GAAP measures should not be considered a substitute for the reported results prepared in accordance with GAAP. These non-GAAP financial measures, as determined and presented by the company, may not be comparable to related or similarly titled measures reported by other companies.

Third-Quarter Conference Call
ArvinMeritor will host a conference call and Web cast to present the company�s fiscal year 2009 third-quarter financial results on Tuesday, Aug. 4, 2009, at 9 a.m. (ET).

To participate, call (617) 213-4867, ten minutes prior to the start of the call. Please reference passcode 51892323 when dialing in. Investors can also listen to the conference call in real time � or for seven days by recording � by visiting www.arvinmeritor.com and selecting the Web cast link from the home page or the investor page.

A replay of the call will be available from 12 p.m. Aug. 4, to 11:59 p.m. Aug. 11, 2009, by calling (888) 286-8010 (within the United States) or (617) 801-6888 for international calls. Please refer to replay pass code number 98701091.

Forward-Looking Statements
This press release contains statements relating to future results of the company (including certain projections and business trends) that are �forward-looking statements� as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as �believe,� �expect,� �anticipate,� �estimate,� �should,� �are likely to be,� �will� and similar expressions. There are risks and uncertainties relating to our ability to obtain any needed waiver or amendment to our credit agreement; our ability to finalize the replacement of our U.S. securitization facility in an amount and on terms acceptable to ArvinMeritor; our ability to complete the sale of the Wheels business, including with respect to the competition filings required and other closing conditions; our ability to achieve anticipated or continued cost savings from reduction actions; and our ability to execute the Company�s announced plans for the Body Systems and Chassis Systems businesses of LVS, including the timing and certainty of completion or the terms upon which any sale agreement with respect to any portion of the business may be made and the amount of any exit costs. In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; whether we will have sufficient liquidity as we continue to be affected by declining vehicle production volumes; the financial condition of the company�s suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company�s debt; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and rising cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company�s debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

CONTACTS:
Media Inquiries
Lin Cummins
(248) 435-7112
linda.cummins@arvinmeritor.com

Investor Inquiries
Terry Huch
(248) 435-9426
terry.huch@arvinmeritor.com

�� ARVINMERITOR, INC.
��CONSOLIDATED STATEMENT OF OPERATIONS
��(Unaudited)
��(In millions, except per share amounts)

��Quarter Ended ��Nine Months Ended
��June 30, ��June 30,
��-------------- ��-----------------
��2009 ��2008 ��2009 ��2008
��---- ��---- ��---- ��----
��Sales ��$993 ��$1,877 ��$3,280 ��$5,101
��Cost of sales ��(916) ��(1,697) ��(3,043) ��(4,637)
��---- ��------ ��------ ��------
��GROSS MARGIN ��77 ��180 ��237 ��464
��Selling, general and
��administrative ��(69) ��(123) ��(228) ��(309)
��Restructuring costs ��(6) ��(2) ��(78) ��(9)
��Asset impairments ��- ��- ��(223) ��-
��Other expense, net ��- ��- ��(1) ��(1)
��--- ��--- ��--- ��---
��OPERATING INCOME (LOSS) ��2 ��55 ��(293) ��145
��Equity in earnings of affiliates ��7 ��12 ��8 ��29
��Interest expense, net ��(22) ��(19) ��(65) ��(65)
��--- ��--- ��--- ��---
��INCOME (LOSS) BEFORE INCOME TAXES ��(13) ��48 ��(350) ��109
��Benefit (provision) for income
��taxes ��(12) ��3 ��(665) ��(20)
��Minority interests ��(3) ��(3) ��(6) ��(10)
��--- ��--- ��--- ��---
��INCOME (LOSS) FROM CONTINUING
��OPERATIONS ��(28) ��48 ��(1,021) ��79
��LOSS FROM DISCONTINUED OPERATIONS ��(134) ��(4) ��(179) ��(27)
��---- ��--- ��---- ��---
��NET INCOME (LOSS) ��$(162) ��$44 ��$(1,200) ��$52
��===== ��=== ��======= ��===
��DILUTED EARNINGS (LOSS) PER SHARE
��Continuing operations ��$(0.39) ��$0.66 ��$(14.08) ��$1.09
��Discontinued operations ��(1.84) ��(0.06) ��(2.47) ��(0.37)
��----- ��----- ��----- ��-----
��Diluted income (loss) per share ��$(2.23) ��$0.60 ��$(16.55) ��$0.72
��====== ��===== ��======= ��=====
��Diluted average common shares
��outstanding ��72.7 ��72.9 ��72.5 ��72.6

��ARVINMERITOR, INC.
��CONSOLIDATED BALANCE SHEET
��(Unaudited, In millions)

��June 30, ��September 30,
��2009 ��2008
��---- ��----
��ASSETS:
��-------
��Cash and cash equivalents ��$76 ��$497
��Receivables, trade and other, net ��679 ��1,114
��Inventories ��401 ��623
��Other current assets ��114 ��218
��Assets of discontinued operations ��53 ��-
��Net property ��523 ��775
��Goodwill ��438 ��522
��Other assets ��343 ��925
��--- ��---
��TOTAL ASSETS ��$2,627 ��$4,674
��====== ��======

��LIABILITIES AND SHAREOWNERS' EQUITY (DEFICIT)
��--------------------------------------------
��Short-term debt ��$109 ��$240
��Accounts payable ��671 ��1,287
��Other current liabilities ��453 ��610
��Liabilities of discontinued operations ��87 ��-
��Long-term debt ��1,235 ��1,063
��Retirement benefits ��617 ��690
��Other liabilities ��301 ��247
��Minority interests ��26 ��75
��Shareowners' equity (deficit) ��(872) ��462
��---- ��---
��TOTAL LIABILITIES AND SHAREOWNERS'
��EQUITY (DEFICIT) ��$2,627 ��$4,674
��====== ��======

��ARVINMERITOR, INC.
��CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
��(Unaudited, In millions)

��Nine Months Ended June 30,
��-------------------------
��2009 ��2008
��---- ��----
��OPERATING ACTIVITIES
��Income (loss) from continuing operations ��$(1,021) ��$79
��Adjustments to loss from continuing operations:
��Depreciation and amortization ��66 ��96
��Asset impairment charges ��223 ��-
��Deferred income tax expense (benefit) ��642 ��(18)
��Restructuring costs, net of payments ��34 ��(10)
��Pension and retiree medical expense ��57 ��73
��Other adjustments to income (loss) from
��continuing operations, net ��17 ��-
��Pension and retiree medical contributions ��(78) ��(57)
��Proceeds from terminations of interest rate swaps ��- ��28
��Changes in off-balance sheet receivable
��securitization and factoring ��(260) ��203
��Changes in assets and liabilities ��51 ��(324)
��------ ��------
��Cash flows provided by (used for) continuing
��operations ��(269) ��70
��Cash flows provided by (used for) discontinued
��operations, net ��(72) ��(64)
��------ ��------
��CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES ��(341) ��6
��INVESTING ACTIVITIES
��Capital expenditures ��(103) ��(99)
��Acquisitions of businesses and investments,
��net of cash acquired ��- ��(43)
��Proceeds from disposition of property and
��businesses ��3 ��9
��Proceeds from investments and marketable
��securities ��6 ��5
��Net investing cash flows provided by (used
��for) discontinued operations ��(25) ��38
��------ ��------
��CASH USED FOR INVESTING ACTIVITIES ��(119) ��(90)
��------ ��------
��FINANCING ACTIVITIES
��Borrowings (payments) on accounts
��receivable securitization program ��(33) ��118
��Borrowings on revolving credit facility, net ��181 ��-
��Repayment of notes ��(83) ��(5)
��Borrowings (payments) on lines of credit
��and other, net ��(4) ��6
��------ ��------
��Net change in debt ��61 ��119
��Debt issuance and extinguishment costs ��- ��(6)
��Cash dividends ��(8) ��(23)
��Net financing cash flows provided by
��discontinued operations ��4 ��2
��------ ��------
��CASH PROVIDED BY FINANCING ACTIVITIES ��57 ��92
��------ ��------
��EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE
��RATES ON CASH AND CASH EQUIVALENTS ��(18) ��15
��------ ��------
��CHANGE IN CASH AND CASH EQUIVALENTS ��(421) ��23
��CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ��497 ��409
��------ ��------
��CASH AND CASH EQUIVALENTS AT END OF PERIOD ��$76 ��$432
��====== ��======

��ARVINMERITOR, INC.
��CONSOLIDATED BUSINESS SEGMENT INFORMATION
��(Unaudited, In millions)

��Quarter Ended ��Nine Months Ended
��June 30, ��June 30,
��----------------- ��-----------------
��2009 ��2008 ��2009 ��2008
��---- ��---- ��---- ��----
��Sales:
��Commercial Vehicle Systems ��$683 ��$1,356 ��$2,378 ��$3,628
��Light Vehicle Systems ��310 ��521 ��902 ��1,473
��--- ��--- ��--- ��-----
��Total sales ��$993 ��$1,877 ��$3,280 ��$5,101
��==== ��====== ��====== ��======
��EBITDA:
��Commercial Vehicle Systems ��$30 ��$101 ��$75 ��$256
��Light Vehicle Systems ��(1) ��16 ��(268) ��38
��-- ��-- ��---- ��--
��Total Segment EBITDA ��29 ��117 ��(193) ��294
��Unallocated Corporate Costs ��(3) ��(13 ��(25) ��(19)
��-- ��--- ��--- ��---
��Total EBITDA ��26 ��104 ��(218) ��275
��Loss on Sale of Receivables ��(1) ��(6) ��(7) ��(15)
��Depreciation and
��Amortization ��(19) ��(34) ��(66) ��(96)
��Interest Expense, Net ��(22) ��(19) ��(65) ��(65)
��Benefit (Provision) for
��Income Taxes ��(12) ��3 ��(665) ��(20)
��--- ��--- ��---- ��---
��Loss from Continuing
��Operations ��$(28) ��$48 ��$(1,021) ��$79
��==== ��=== ��======= ��===

��ARVINMERITOR, INC.
��SELECTED FINANCIAL INFORMATION - RECONCILIATION
��Non-GAAP
��(Unaudited)
��(In millions, except per share amounts)

��Q3 FY 09
��LVS ��Income �Before
��Q3 FY 09 �Restruc- �Separation �Tax ��Special
��Reported �turing ��Costs ��Charges Items
��-------- �-------- �---------- �------- --------
��Sales ��$993 ��$- ��$- ��$- ��$993
��Gross Margin ��77 ��- ��- ��- ��77
��Operating Income ��2 ��6 ��1 ��- ��9
��Loss from Continuing
��Operations ��(28) ��6 ��1 ��3 ��(18)
��Diluted Loss Per Share -
��Continuing Operations ��$(0.39) ��$0.09 ��$0.01 ��$0.04 ��$(0.25)

��Segment EBITDA:
��Commercial Vehicle Systems �$30 ��$5 ��$- ��$- ��$35
��Light Vehicle Systems ��(1) ��1 ��- ��- ��-
��------- �------- ��------- �------- �-------
��Total Segment EBITDA ��$29 ��$6 ��$- ��$- ��$35

��Segment EBITDA Margins
��Commercial Vehicle Systems �4.4% ��5.1%
��Light Vehicle Systems ��-0.3% ��0.0%
��Total Segment EBITDA Margins �2.9% ��3.5%

��ARVINMERITOR, INC.
��SELECTED FINANCIAL INFORMATION - RECONCILIATION
��Non-GAAP
��(Unaudited)
��(In millions, except per share amounts)

��Q3 FY 08
��LVS ��Before
��Q3 FY 08 �Restruc- �Separation �Special
��Reported �turing ��Costs ��Items
��-------- �-------- �---------- �--------
��Sales ��$1,877 ��$- ��$- ��$1,877
��Gross Margin ��180 ��- ��- ��180
��Operating Income (Loss) ��55 ��2 ��6 ��63
��Income from Continuing Operations ��48 ��2 ��4 ��54
��Basic Loss Per Share - Continuing
��Operations ��$0.66 ��$0.02 ��$0.06 ��$0.74

��Segment EBITDA:
��Commercial Vehicle Systems ��$101 ��$- ��$- ��$101
��Light Vehicle Systems ��16 ��1 ��- ��17
��------- ��------- ��------- ��-------
��Total Segment EBITDA ��$117 ��$1 ��$- ��$118
��======= ��======= ��======= ��=======
��Segment EBITDA Margins
��Commercial Vehicle Systems ��7.4% ��7.4%
��Light Vehicle Systems ��3.1% ��3.3%
��Total Segment EBITDA Margins ��6.2% ��6.3%

��ARVINMERITOR, INC.
��EBITDA BEFORE SPECIAL ITEMS RECONCILIATION
��Non-GAAP
��(Unaudited, in millions)

��Three Months Ended
��June 30,
��2009 ��2008
��---- ��----

��Total EBITDA - Before Special Items ��$33 ��$112
��Restructuring Costs, net of minority interests ��(6) ��(2)
��LVS Separation Costs ��(1) ��(6)
��Loss on Sale of Receivables ��(1) ��(6)
��Depreciation and Amortization ��(19) ��(34)
��Interest Expense, Net ��(22) ��(19)
��Benefit (Provision) for Income Taxes ��(12) ��3
��--- ��-
��Income (Loss) From Continuing Operations ��$(28) ��$48
��==== ��===

��ARVINMERITOR, INC.
��FREE CASH FLOW - RECONCILIATION
��Non-GAAP
��(Unaudited, in millions)

��Quarter Ended
��June 30,
��-----------------
��2009 ��2008
��---- ��----

��Cash flows provided by for continuing operations �$117 ��$121
��Capital expenditures - continuing operations ��(26) ��(46)
��--- ��---
��Free cash flows provided by continuing
��operations ��91 ��75

��Cash flows used for discontinued operations ��(18) ��(7)
��Capital expenditures - discontinued operations ��- ��(9)
��- ��--
��Cash flows used for discontinued operations ��(18) ��(16)

��Free cash flow - full company ��$73 ��$59
��=== ��===

ArvinMeritor Hosts Conference Call and Web Cast to Present Fiscal Year 2009 Third-Quarter Earnings

7/8/2009 2:20:02 PM

TROY, Mich. (Jul. 8, 2009) � ArvinMeritor, Inc. (NYSE: ARM) will host a conference call and Web cast to present the company�s fiscal year 2009 third-quarter financial results on Tuesday, Aug. 4, 2009, at 9 a.m. (ET).

To access the listen-only audio Web cast, visit the ArvinMeritor Web site at www.arvinmeritor.com and select the Web cast link from the home page or the investor page.

The company�s third-quarter financial results will be released prior to the conference call and Web cast on Aug. 4, 2009. The release will be distributed through PR Newswire, First Call and the company�s Web site.

CONTACTS:
Media Inquiries
Krista Sohm
(248) 435-7115
krista.sohm@arvinmeritor.com

Investor Inquiries
Terry Huch
(248) 435-9426
terry.huch@arvinmeritor.com

ArvinMeritor Regains Compliance With NYSE's Continued Listing Standards

6/3/2009 1:52:23 PM

TROY, Mich., (June 3, 2009) � ArvinMeritor, Inc. (NYSE: ARM) today announced that on June 1, 2009, the company was notified by the New York Stock Exchange, Inc. (�NYSE�)�that, based upon modified listing standards adopted by the NYSE, it has�regained compliance with�the NYSE�s continued listing standards.��

As previously disclosed, the company�was notified by the NYSE in March�2009 that it had fallen below the continued listing standard requiring�the average market capitalization of a listed company to be not less than $75�million over a consecutive 30 trading-day period when, at the same time, total stockholders� equity is less than $75 million.�

The NYSE�s continued listing standard, as modified under a pilot program effective through Oct. 31, 2009, lowered the required threshold from $75 million to $50 million. Accordingly, the company is currently in compliance with the NYSE�s continued listing requirement that pertains to market capitalization and stockholders� equity. The NYSE has stated that it anticipates a subsequent rule filing prior to Oct. 31, 2009 to make this change a permanent continued listing standard.

About ArvinMeritor

ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.arvinmeritor.com/.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "estimate," "should," "are likely to be," "will" and similar expressions. There are risks and uncertainties relating to whether the NYSE will adopt the revised continued listing standards on a permanent basis and whether the company will continue to be compliant with all NYSE continued listing standards. In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; whether our liquidity will continue to be affected by declining vehicle production volumes in the future; the financial condition of the company's suppliers and customers, including bankruptcies and potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company's debt; the demand for commercial, specialty and light vehicles for which the company supplies products; timing and certainty as to completion and terms of any dispositions of the Body Systems and Chassis businesses of ArvinMeritor's LVS business; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and sharply rising cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; success and timing of potential divestitures; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company's debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

CONTACTS: Media Inquiries

Lin Cummins
                (248) 435-7112
        linda.cummins@arvinmeritor.com

                Investor Inquiries
                        Terry Huch

(248) 435-9426

terry.huch@arvinmeritor.com

ArvinMeritor Reports Second-Quarter Fiscal Year 2009 Results

5/5/2009 4:34:59 PM

ArvinMeritor today reported financial results for its second fiscal quarter ended March 31, 2009.

Quarterly Highlights

· Sales of $1.1 billion, down approximately $671 million, or 38 percent, from the same period last year (down 32 percent on a constant currency basis).

· On a GAAP basis, net loss from continuing operations was $52 million or $0.72 per diluted share, compared to net income from continuing operations of $24 million or $0.33 per diluted share in the same period last year.

· Loss from continuing operations, before special items, of $9 million, or $0.12 per diluted share, compared to income from continuing operations, before special items, of $27 million, or $0.37 per diluted share in the same period last year.

· Cash outflow from operations was $102 million in the second quarter of fiscal year 2009. Excluding reductions in sales of receivables, cash flow was positive $77 million resulting from reductions in working capital and benefits of cost reduction actions.

· Free cash outflow (cash outflow from operations less capital expenditures) of $138 million in the second quarter of fiscal year 2009 compared to positive free cash flow of $134 million in the same period last year.

“We are proud of the strong performance from our global operations teams despite continued low volumes in the commercial and light vehicle markets,” said Chip McClure, chairman, CEO and president. “While revenues are down in the OE light vehicle, truck and trailer businesses, compared to the first quarter, we are reporting more favorable earnings due to a continued focus on cost reduction efforts and strong performance from our specialty and aftermarket groups.”

Second-Quarter Fiscal Year 2009 Results

For the second quarter of fiscal year 2009, ArvinMeritor posted sales from continuing operations of $1.1 billion, a decrease of approximately 38 percent from the same period last year. This decrease is primarily due to significantly lower production volumes in most original equipment markets globally.

EBITDA, before special items, was $36 million, down $68 million from the same period last year. The unfavorable impact of lower sales on EBITDA was partially offset by aggressive cost reduction efforts and demand for specialty and aftermarket products, driven by the company’s military contracts and expanding remanufacturing business. Also impacting EBITDA in the second quarter of fiscal year 2009 was a favorable one-time adjustment of $12 million resulting from the elimination of substantially all variable incentive compensation.

Loss from continuing operations, before special items, was $9 million, or $0.12 per diluted share, compared to income from continuing operations, before special items of $27 million, or $0.37 per diluted share, in the same period last year. Special items for the quarter primarily reflect $56 million of pre-tax restructuring charges.

Commercial vehicle sales were $739 million, down 38 percent from the same period last year. EBITDA, before special items, for Commercial Vehicle Systems was $53 million for the quarter, down 37 percent from the second quarter of fiscal year 2008, primarily due to lower sales. However, compared to the company’s first quarter, EBITDA, before special items, was higher despite sales being down 23 percent. This reflects the impact of our cost reduction actions as well as a favorable mix of specialty and aftermarket products.

Cost-Reduction Actions

During the first half of fiscal year 2009, the company executed various actions to reduce costs and manage cash during these difficult economic times. These actions are expected to result in savings of approximately $430 million on an annual basis, or $311 million for fiscal year 2009. Cost reduction actions include the elimination of the Light Vehicle Systems (LVS) divisional organization, temporary or permanent reduction of approximately 3,000 employees globally, salary reductions, suspension of annual salary increases, elimination of the 401-K match, extended plant shutdowns across the company’s global operations, the elimination of all non-essential discretionary spending and savings driven by the Performance Plus program.

Light Vehicle Systems Update

In January, the company announced that difficulties in the credit markets and continued volume weakness in most markets prevented the sale of Body and Chassis as one entity at an acceptable value. Therefore, the company has remained intensely focused on managing both the Body Systems and Chassis businesses for maximum cost efficiencies.

EBITDA, before special items, for LVS was negative $13 million for the quarter, compared to negative $35 million in the first quarter. Improvements in labor and burden, restructuring initiatives, pricing adjustments, contract renegotiations and strong aftermarket sales contributed to stronger performance this quarter. Body Systems has also been awarded new business expected to be valued at more than $15 million of annual sales in China, $60 million of annual sales in North America (of which 80 percent is with non-U.S. companies) and more than $47 million of annual sales in Europe. In total, we believe these business wins represent significant sales over the life of the programs and should enhance the value of this business.

In addition, the company continues to aggressively pursue exit strategies for its Chassis businesses. ArvinMeritor anticipates finalizing the first transaction for a significant unit of Chassis in the near future.

Impact of Chrysler Bankruptcy

As of April 29, ArvinMeritor had $7 million of outstanding receivables subject to Chrysler’s U.S. bankruptcy proceedings. Of that amount, only $3 million are expected to be outside of administrative claim status. Management has determined that if some or all of these receivables are ultimately not collectible, the impact on the company’s second-quarter results would not be material.

ArvinMeritor will be impacted by Chrysler’s announcement to idle its facilities during the bankruptcy process. The company anticipates a 30-60 day shutdown to have a negative impact on EBITDA in the range of $2 million to $5 million.

Liquidity

The ArvinMeritor management team remains focused on managing the business for maximum liquidity. At the end of the second quarter, the company was in compliance with all covenants in our senior secured credit facility and the U.S. securitization facility. It is possible that the company may need amendments or waivers to these facilities before the end of the 2009 fiscal year in order to increase the flexibility afforded to ArvinMeritor through the senior secured debt-to-EBITDA covenants. If such amendments or waivers are not needed by the end of the third fiscal quarter, it is increasingly likely that they will be needed on Sept. 30, 2009. If amendments or waivers are needed and not obtained, the company would be in violation of the debt to EBITDA covenant and the lenders would have the right to accelerate the obligations.

Even with amendments or waivers to the company’s senior secured credit facility and the U.S. securitization facility, it may be necessary to pursue additional liquidity enhancing actions, which are not entirely within the company’s control, including exploring asset sales or obtaining additional external sources of liquidity.

Outlook

While current market conditions remain depressed, North America and South America are showing signs of stabilization, and certain markets in Asia are indicating slight signs of improvement, offsetting continued declines in Europe.

For the third quarter of fiscal year 2009 (compared to the second fiscal quarter of 2009), the company anticipates:

· Revenue to be about flat

· Loss per share, before special items, to be greater

· Free cash flow, before reductions in sales of receivables, to be positive

· Total free cash flow to be slightly negative

“ArvinMeritor was proactive in taking aggressive steps to preserve liquidity through this downturn and continues to be diligent in maintaining all of the actions put into place in the past six months,” said McClure. “We will continue to operate with that same rigor, while maintaining a constant focus on the company’s financial position. We anticipate that we will begin to see positive signs of improvement in some markets during the second half of this year.”

Forward-Looking Statements

This presentation contains statements relating to future results of the company (including certain projections and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “estimate,” “should,” “are likely to be,” “will” and similar expressions. There are risks and uncertainties relating to the approval by the New York Stock Exchange of our plan to meet compliance with listing requirements, our ability to obtain any needed amendment to our credit agreement, our ability to achieve anticipated cost savings from cost reduction actions and the planned disposition of the Body Systems and Chassis Systems businesses of ArvinMeritor’s LVS business, including the timing and certainty of completion and the terms of any transaction or transactions. In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; whether we will have sufficient liquidity as we continue to be affected by declining vehicle production volumes; the financial condition of the company’s suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to find a replacement facility for its U.S. securitization facility; the ability of the company to access capital markets; credit ratings of the company’s debt; continued decline in the price of our common stock on the NYSE; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and sharply rising cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; success and timing of potential divestitures; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company’s debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Non-GAAP Measures

In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”) included throughout this press release, the company has provided information regarding income or loss from continuing operations, diluted earnings per share and operating income before special items, which are non-GAAP financial measures. These non-GAAP measures are defined as reported income or loss from continuing operations, reported diluted earnings or loss per share, and EBITDA plus or minus special items. Other non-GAAP financial measures include “free cash flow.” EBITDA is defined as income or loss from continuing operations before interest, income taxes, depreciation and amortization and loss on sale of receivables. We use EBITDA as the primary basis to evaluate the performance of each of our reportable segments. Free cash flow represents net cash provided by operating activities, less capital expenditures.

Management believes that the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the company's financial position and results of operations. In particular, management believes that EBITDA is a meaningful measure of performance as it is commonly utilized by management and the investment community to analyze operating performance and entity valuation; and free cash flow is useful in analyzing the company’s ability to service and repay its debt. Further, management uses these non-GAAP measures for planning and forecasting in future periods.

Second-Quarter 2009 Conference Call

The company will host a conference call and Web cast to present the company’s fiscal year 2009 second-quarter financial results on Tuesday, May 5, 2009, at 4:30 p.m. (ET).

To participate, call (617) 213-4854 ten minutes prior to the start of the call. Please reference pass code 85210970 when dialing in. Investors can also listen to the conference call in real time – or for seven days by recording – by visiting www.arvinmeritor.com.

A replay of the call will be available from 7:30 p.m. May 5, to 11:59 p.m. May 12, 2009, by calling (888) 286-8010 (within the United States) or (617) 801-6888 for international calls. Please refer to replay pass code number 95313064.

To access the listen-only audio Web cast, visit the ArvinMeritor Web site at www.arvinmeritor.com and select the Web cast link from the home page or the investor page.

The company’s second-quarter financial results will be released prior to the conference call and Web cast on May 5, 2009. The release will be issued through PR Newswire, First Call and the company’s Web site.

CONTACTS: Media Inquiries
                                                                                                                     Lin Cummins
                                                                                                (248) 435-7112
                                                                                   linda.cummins@arvinmeritor.com

                                                                                                Investor Inquiries
                                                                                                                     Terry Huch

(248) 435-9426

terry.huch@arvinmeritor.com

ARVINMERITOR, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

(In millions, except per share amounts)

Quarter Ended Six Months Ended

March 31, March 31,

2009 2008 2009 2008

Sales $1,110 $1,781 $2,480 $3,444

Cost of sales (1,022) (1,614) (2,319) (3,147)

GROSS MARGIN 88 167 161 297

Selling, general and

administrative (69) (105) (175) (197)

Restructuring costs (56) (5) (82) (15)

Asset impairment charges - - (279) -

Other expense, net (1) (1) (1) (1)

OPERATING INCOME (LOSS) (38) 56 (376) 84

Equity in earnings (losses)

of affiliates (3) 6 1 17

Interest expense, net (23) (20) (45) (47)

INCOME (LOSS) BEFORE INCOME

TAXES (64) 42 (420) 54

Benefit (provision) for income

taxes 12 (14) (633) (24)

Minority interests - (4) 10 (7)

INCOME (LOSS) FROM CONTINUING

OPERATIONS (52) 24 (1,043) 23

INCOME (LOSS) FROM DISCONTINUED

OPERATIONS 5 (4) 5 (15)

NET INCOME (LOSS) $(47) $20 $(1,038) $8

DILUTED EARNINGS (LOSS) PER

Continuing operations $(0.72) $0.33 $(14.41) $0.32

Discontinued operations 0.07 (0.05) 0.07 (0.21)

Diluted earnings (loss) per

share $(0.65) $0.28 $(14.34) $0.11

Diluted average common shares

outstanding 72.6 72.5 72.4 72.5

ARVINMERITOR, INC.

CONSOLIDATED BALANCE SHEET

(Unaudited, In millions)

March 31, September 30,

2009 2008

ASSETS:

Cash and cash equivalents $165 $497

Receivables, trade and other, net 783 1,114

Inventories 506 623

Other current assets 115 218

Net property 530 775

Goodwill 423 522

Other assets 352 925

TOTAL ASSETS $2,874 $4,674

LIABILITIES AND SHAREOWNERS' EQUITY

(DEFICIT)

Short-term debt $141 $240

Accounts payable 715 1,287

Other current liabilities 435 610

Long-term debt 1,376 1,063

Retirement benefits 654 690

Other liabilities 272 247

Minority interests 50 75

Shareowners' equity (deficit) (769) 462

TOTAL LIABILITIES AND SHAREOWNERS'

EQUITY (DEFICIT) $2,874 $4,674

ARVINMERITOR, INC.

CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, In millions)

Quarter Ended Six Months Ended

March 31, March 31,

2009 2008 2009 2008

Sales:

Commercial Vehicle Systems $739 $1,192 $1,695 $2,272

Light Vehicle Systems 371 589 785 1,172

Total sales $1,110 $1,781 $2,480 $3,444

EBITDA:

Commercial Vehicle Systems $15 $84 $45 $155

Light Vehicle Systems (29) 19 (331) 21

Total Segment EBITDA (14) 103 (286) 176

Unallocated Corporate Costs (7) (4) (23) (5)

Total EBITDA (21) 99 (309) 171

Loss on Sale of Receivables (2) (5) (6) (9)

Depreciation and

Amortization (18) (36) (50) (68)

Interest Expense, Net (23) (20) (45) (47)

Benefit (Provision) for

Income Taxes 12 (14) (633) (24)

Income (Loss) from

Continuing Operations $(52) $24 $(1,043) $23

ARVINMERITOR, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited, In millions)

Six Months Ended March 31,

2009 2008

OPERATING ACTIVITIES

Income (loss) from continuing

operations $(1,043) $23

Adjustments to loss from continuing

operations:

Depreciation and amortization 50 68

Asset Impairment charges 279 -

Deferred income tax expense 632 21

Restructuring costs, net of payments 41 (5)

Pension and retiree medical expense 43 52

Other adjustments to income (loss)

from continuing operations, net 7 (5)

Pension and retiree medical

contributions (61) (43)

Proceeds from terminations of

interest rate swaps - 28

Changes in off-balance sheet

receivable securitization and

factoring (183) 197

Changes in assets and liabilities (197) (430)

Cash flows used for continuing

operations (432) (94)

Cash flows used for discontinued

operations, net (8) (14)

CASH USED FOR OPERATING ACTIVITIES (440) (108)

INVESTING ACTIVITIES

Capital expenditures (84) (63)

Acquisitions of businesses and

investments, net of cash acquired - (41)

Proceeds from disposition of property

and businesses 2 8

Proceeds from investments and

marketable securities 6 5

Net investing cash flows provided by

discontinued operations - 55

CASH USED FOR INVESTING ACTIVITIES (76) (36)

FINANCING ACTIVITIES

Borrowings (payments) on accounts

receivable securitization program (23) 128

Borrowings on revolving credit

facility, net 318 -

Repayment of notes (83) (5)

Borrowings on lines of credit and

other, net 6 4

Net change in debt 218 127

Debt issuance and extinguishment costs - (6)

Cash dividends (8) (15)

CASH PROVIDED BY FINANCING ACTIVITIES 210 106

EFFECT OF CHANGES IN FOREIGN CURRENCY

EXCHANGE RATES ON CASH AND CASH EQUIVALENTS (26) 6

CHANGE IN CASH AND CASH EQUIVALENTS (332) (32)

CASH AND CASH EQUIVALENTS AT

BEGINNING OF PERIOD 497 409

CASH AND CASH EQUIVALENTS AT END OF

PERIOD $165 $377

ARVINMERITOR, INC.

SELECTED FINANCIAL INFORMATION - RECONCILIATION

Non-GAAP

(Unaudited)

(In millions, except per share amounts)

LVS Q2 FY 09

Q2 FY 09 Separation Before

Reported Restructuring Costs Special Items

Sales $1,110 $- $- $1,110

Gross Margin 88 - - 88

Operating Income (Loss) (38) 56 2 20

Loss from Continuing Operations (52) 41 2 (9)

Basic Loss Per Share - Continuing

Operations $(0.72) $0.57 $0.03 $(0.12)

Segment EBITDA:

Commercial Vehicle Systems $15 $38 $- $53

Light Vehicle Systems (29) 16 - (13)

Total Segment EBITDA $(14) $54 $- $40

Segment EBITDA Margins

Commercial Vehicle Systems 2.0% 7.2%

Light Vehicle Systems -7.8% -3.5%

Total Segment EBITDA Margins -1.3% 3.6%

Q1 FY 09

Q1 FY 09 Impairment Before

Adjusted (1) Restructuring Charges Special Items

Segment EBITDA:

Commercial Vehicle Systems $30 $8 $8 $46

Light Vehicle Systems (302) 15 252 (35)

Total Segment EBITDA $(272) $23 $260 $11

(1) Segment EBITDA results for the first quarter of fiscal year 2009 have been adjusted to conform to the year-to-date allocations of corporate costs.

ARVINMERITOR, INC.

SELECTED FINANCIAL INFORMATION - RECONCILIATION

Non-GAAP

(Unaudited)

(In millions, except per share amounts)

Q2 FY 08 Q2 FY 08 Before

Reported Restructuring Special Items

Sales $1,781 $- $1,781

Gross Margin 167 - 167

Operating Income 56 5 61

Income from Continuing Operations 24 3 27

Diluted Earnings Per Share -

Continuing Operations $0.33 $0.04 $0.37

Segment EBITDA:

Commercial Vehicle Systems $84 $- $84

Light Vehicle Systems 19 5 24

Total Segment EBITDA $103 $5 $108

Segment EBITDA Margins

Commercial Vehicle Systems 7.0% 7.0%

Light Vehicle Systems 3.2% 4.1%

Total Segment EBITDA Margins 5.8% 6.1%

ARVINMERITOR, INC.

EBITDA BEFORE SPECIAL ITEMS RECONCILIATION

Non-GAAP

(Unaudited, in millions)

Three Months Ended

March 31,

2009 2008

Total EBITDA - Before Special Items $36 $104

Restructuring Costs, net of minority interests (55) (5)

LVS Separation Costs (2) -

Loss on Sale of Receivables (2) (5)

Depreciation and Amortization (18) (36)

Interest Expense, Net (23) (20)

Benefit (Provision) for Income Taxes 12 (14)

Income (Loss) From Continuing Operations $(52) $24

ARVINMERITOR, INC.

FREE CASH FLOW - RECONCILIATION

Non-GAAP

(Unaudited, in millions)

Quarter Ended

March 31,

2009 2008

Cash flows provided by (used for)

operating activities, before

receivables securitization and

factoring $77 $81

Changes in receivables securitization

and factoring (179) 82

Cash flows provided by (used for)

operating activities (102) 163

Capital expenditures (36) (29)

Free cash flow $(138) $134