ArvinMeritor forecasts big 3Q sales increase...

Auto parts supplier ArvinMeritor Inc. said Wednesday it expects stronger global demand to boost fiscal third-quarter sales by 20 percent over the year-earlier level.

The company also said it expects earnings per share for the fiscal year ending in September to be in the upper end of its previously issued guidance.

Shortly after the opening bell, shares rose $1, or 8 percent, to $13.34. In the last 52 weeks, shares have ranged from $9.08 to $23.65.

Despite weaker than anticipated industry conditions in North America, ArvinMeritor expects to report sales for the quarter which ended Monday of about $2 billion, up 20 percent from last year's fiscal third quarter.

Analysts polled by Thomson Financial expect, on average, revenue of $1.87 billion.

The company attributed the sales growth to stronger industry conditions and market share in South America and Asia Pacific, a favorable light vehicle platform mix in Europe and increased specialty sales, including military products in North America and off-highway products in China.

The third quarter should also result in a lower tax rate because a one-time benefit of $15 million to $19 million in continuing operations, previously designated for the second half of the year, will now be realized entirely in the third quarter.

For the full fiscal year, which ends in September, ArvinMeritor said it expects earnings per share in the high end of its previously forecast range of $1.40 to $1.60, before special items.

Analysts, whose estimates typically exclude special items, expect full fiscal year earnings per share of $1.36.

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