May 23, 2013
ArvinMeritor, Inc (NYSE: ARM) manufactures auto parts for commercial trucks and trailers. The company's 10 largest customers, including AB Volvo (VOLV) and Chrysler, account for 59% of revenue.[1] ArvinMeritor faces risk from the slowing of the truck and trailer market in North America as gas prices hit this sector of the automobile market the hardest, a market upon which the auto parts industry depends heavily. The company earned $4.1 billion in revenue and incurred a net loss of $1.2 billion in net income in 2009.[2]
As Emerging Markets boom and the American auto market flattens, ArvinMeritor is looking to Asia for growth opportunities. The weakening US Dollar has affected ARM and other auto parts manufacturers by boosting ever growing international sales. Meanwhile, a rise in key input prices, including aluminum and steel, could shrink bottom line margins and topline demand if the company passes part of the price increase on to its customers.
(Read more at Wikinvest
)