Earnings Decline at ArvinMeritor

The company's sales are higher in the third quarter.
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Earnings at

ArvinMeritor

(ARM)

skidded in the third quarter, and the company announced plans for layoffs and plant closings that will cost $20 million to $25 million.

The company, which is pursuing an unsolicited bid for rival

Dana

(DCN)

, posted a profit of $47 million, or 69 cents a share, in the quarter ended June 30, down from $62 million, or 91 cents a share, in the same period last year.

Overall sales increased 12% to $2.11 billion, and were helped by the weaker dollar and the Zeuna Starker acquisition, the company said in a press release Monday.

"Our results for the third fiscal quarter were negatively impacted by lower light-vehicle production volumes in both North America and Western Europe, continued soft demand in our light-vehicle aftermarket business and reduced build rates in certain of our commercial-vehicle systems markets," ArvinMeritor said.

"We continue to identify aggressive actions in response to the current market conditions, including further rationalization of our engineering and manufacturing facilities, as well as other workforce consolidation and reduction activities."

ArvinMeritor expects to earn between 43 cents and 48 cents a share in the fourth quarter, excluding a gain from the sale of its exhaust-tubing business and more restructuring in its light-vehicle systems operation.

On July 9, the company launched a $2.2 billion takeover bid after Dana refused to discuss a possible buyout. ArvinMeritor plans to offer $15 in cash for all outstanding Dana shares.

The company gave no time frame on its restructuring plans and said it hadn't yet determined their impact on the fourth quarter.

Shares of ArvinMeritor trading on the

New York Stock Exchange

were recently down 12 cents to $18.93.