ArvinMeritor ( ARM), an auto and truck parts supplier, said its third-quarter profits fell primarily due to a labor disruption at its brake facility in Canada which hurt income from continuing operations by $28 million, after-tax.

The Troy, Mich.-based company earned $20 million, or 29 cents a share, in the quarter, compared with $46 million, or 66 cents a share, a year ago.

Excluding restructuring costs and other one-time items, the company earned 73 cents a share from continuing operations. Analysts surveyed by Thomson First Call were expecting earnings of 69 cents a share in the most recent quarter.

Third-quarter revenue rose 3.7% from a year-ago period to $2.48 billion due to improved light vehicle systems sales in Europe and Asia/Pacific, and strong growth in the company's commercial specialty business. Analysts polled by Thomson First Call were expecting revenue of $2.4 billion.

Full year earnings from continuing operations before special items are expected to be $1.65 a share to $1.75 a share compared with $1.60 a share to $1.70 a share forecast earlier. Analyst polled by Thomson First Call are estimating earnings of $1.67 a share.

Third quarter operating income was down about 49% to $47 million.

"Our results for the third quarter of fiscal 2006 build upon the continued execution of our strategic initiatives, including previously announced restructuring activities and our ongoing focus on operational performance," said the company. "However, we cannot discount the significant impact of the labor disruption that occurred in June at our brake facility in Tilbury, Ontario."
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