Meritor Inc Stock Price, News & Analysis

On August 3, 2022, Meritor announced a Notice of Fundamental Change regarding its 3.25% Convertible Senior Notes due 2037, following the completion of its merger with Cummins. Holders are informed that they can convert their notes into cash based on a new Conversion Rate of $36.50 per $1,000 principal amount. They also have the option to sell back their notes at the Repurchase Price on September 14, 2022, which equals the principal plus accrued interest. Additionally, a Make-Whole Period for conversion is set, during which conversion rates will be increased.

Meritor reported strong financial results for its third fiscal quarter ending June 30, 2022, with sales of $1,212 million, an increase of 19% year-over-year. Net income was $73 million or $1.02 per diluted share, up from $42 million or $0.58 per diluted share a year ago. Adjusted EBITDA rose to $142 million with a margin of 11.7%. Operating cash flow improved to $117 million, while free cash flow reached $93 million. Additionally, Meritor shareholders approved the acquisition by Cummins, marking a significant milestone for both companies.

AdaptHealth Corp. (NASD: AHCO) will be added to the S&P SmallCap 600 index, effective August 4, 2022. This change comes as Cummins Inc. (NYSE: CMI) is acquiring Meritor Inc. (NYSE: MTOR), which is being removed from the index. The transition reflects a strategic reshuffle in the S&P indices as AdaptHealth enhances its presence in the health care sector. The acquisition of Meritor by Cummins is expected to complete soon, pending closing conditions.

Meritor, Inc. (NYSE: MTOR) has launched a new online tool enhancing its Driveshaft on Demand (DOD) program, aimed at streamlining the ordering process for replacement driveshafts. This update allows customers to identify and order parts efficiently via MeritorPartsXpress.com, replacing the previous email-based system. The DOD program, established in 2017, has expanded to include Canadian locations and offers high-quality parts with a 24-hour shipping guarantee and a 2-year warranty. This initiative reflects Meritor's commitment to improving customer service and operational efficiency.

Meritor, Inc. (NYSE: MTOR) has launched its ProTec™ Independent Front Suspension (IFS) designed specifically for motorcoach applications. The IFS MIS-20E is engineered to meet the heavy load and ride quality needs of the bus industry, featuring a gross axle weight rating (GAWR) of up to 20,000 pounds. This system promises enhanced ride quality, reliability, and maintenance ease, and integrates components from military applications to ensure high performance and aftermarket support. The product aims to capitalize on the growing demand in the bus market.

On May 26, 2022, Meritor, Inc. (NYSE: MTOR) announced that its shareholders approved the acquisition by Cummins Inc. (NYSE: CMI) at a special meeting. CEO Chris Villavarayan emphasized the strategic importance of this merger in enhancing powertrain components and electrified solutions for commercial vehicles. The transaction is anticipated to close by the end of 2022, pending regulatory approvals. Meritor aims to maintain customer support during this transition. Further details, including voting results, will be available in a Form 8-K filing with the SEC.

Meritor (NYSE: MTOR) has agreed to acquire Siemens' Commercial Vehicles business for approximately €190 million, pending regulatory approvals. This acquisition aims to enhance Meritor's offerings in electric solutions for the commercial vehicle market. The Siemens division, with about 200 employees across multiple countries, specializes in high-performance electric drive systems, essential for next-gen electric powertrains. The deal aligns with Meritor's strategy to strengthen its business ahead of its anticipated acquisition by Cummins, which supports this move.