Meritor Reports Fourth Quarter and Fiscal Year 2013 Results

         Meritor Reports Fourth Quarter and Fiscal Year 2013 Results

Company Announces $120 Million of New Business Wins Toward M2016 Goal

PR Newswire

TROY, Mich., Nov. 13, 2013

TROY, Mich., Nov. 13, 2013 /PRNewswire/ -- Meritor, Inc. (NYSE: MTOR) today
reported financial results for its fourth quarter and full fiscal year ended
Sept. 30, 2013.

Fourth-Quarter Highlights

  oSales were $909 million, down $77 million or 8 percent, from the same
    period last year.
  oNet income on a GAAP basis was $41 million, compared to $5 million in the
    same period last year.
  oAdjusted EBITDA was $70 million, compared with $79 million in the same
    period last year.
  oAdjusted EBITDA margin of 7.7 percent, compared to 8.0 percent in the same
    period last year.
  oOperating cash flow was negative $23 million in the fourth quarter of
    fiscal year 2013, compared to positive $55 million in the same period last
    year.
  oFree cash flow was negative $46 million in the fourth quarter of fiscal
    year 2013, compared to positive $31 million in the same period last year.

"Our performance in the fourth quarter was in line with our expectations,"
said Chairman, CEO and President Ike Evans. "Despite revenue headwinds, in the
second half of the year we achieved solid financial performance driven by
strong execution of the margin-enhancing priorities underlying our M2016
three-year plan. Also in fiscal year 2013, we won $120 million of incremental
business that will begin to favorably impact our financial performance by
2016."

Fourth-Quarter Results
For the fourth quarter of fiscal year 2013, Meritor posted sales of $909
million, down 8 percent from the same period last year, primarily due to lower
military sales. In addition, revenue was unfavorably impacted by geographic
mix as stronger sales in Europe and South America did not fully offset lower
revenues in North America, India and China.

Net income from continuing operations, on a GAAP basis, was $37 million or
$0.38 per diluted share, compared to $4 million or $0.04 per diluted share in
the prior year. The increase in net income from continuing operations was due
primarily to the gain on the sale of the company's 50 percent ownership
interest in Suspensys Sistemas Automotivos Ltda., partially offset by a
non-cash pension settlement loss associated with pension buy-outs of
term-vested participants in the company's U.S. defined benefit pension plan.

Adjusted income from continuing operations in the fourth quarter of fiscal
year 2013 was $11 million, or $0.11 per diluted share, compared to $31
million, or $0.32 per diluted share, a year ago. Adjusted EBITDA was $70
million, compared to $79 million in the fourth quarter of fiscal year 2012.
Adjusted EBITDA margin for the fourth quarter of fiscal year 2013 was 7.7
percent, compared to 8.0 percent in the same period last year. The decline in
Adjusted EBITDA compared to the prior year was primarily driven by lower
sales.

Cash flowfrom operating activities for the fourth fiscal quarter was negative
$23 million, compared to positive$55 million in the same period last year.
Free cash flow for the fourth quarter of fiscal year 2013 was negative $46
million, primarily due to a $54 million voluntary pension contribution and $33
million of income tax payments associated with the gain on sale of the
company's ownership interest in Suspensys in the fourth quarter of 2013. Free
cash flow was positive $31 million in the same period last year.

Fourth-Quarter Segment Results
Commercial Truck & Industrial sales were $709 million, down $75 million
compared with the same period last year, primarily driven by lower military
sales. In addition, revenue was unfavorably impacted by geographic mix as
stronger sales in Europe and South America did not fully offset lower revenues
in North America, India and China. Segment EBITDA for the Commercial Truck &
Industrial segment was $54 million for the quarter, down $9 million or 14
percent from the fourth quarter of fiscal year 2012, primary due to lower
sales. Segment EBITDA margin declined to 7.6 percent, down from 8.0 percent in
the same period last year, as lower material and structural costs partially
offset the impact of lower volumes.

The company's Aftermarket & Trailer segment posted sales of $233 million, up
$2 million from the same period last year. Segment EBITDA for Aftermarket &
Trailer was $24 million, up $6 million or 33 percent from the fourth quarter
of fiscal year 2012, and segment EBITDA margin improved to 10.3 percent from
7.8 percent in the fourth quarter of fiscal year 2012. The increase in segment
EBITDA margin was primarily due to pricing actions in North America and lower
material and structural costs.

Fiscal Year Results
For fiscal year 2013, Meritor posted sales of $3.7 billion, down $717 million
or 16 percent from the prior fiscal year primarily due to lower sales volumes
in global markets.

Net loss on a GAAP basis was $22 million compared to net income of $52 million
in the prior fiscal year. Net loss from continuing operations, on a GAAP
basis, for fiscal year 2013 was $20 million or $0.20 per diluted share,
compared to net income of $70 million or $0.72 per diluted share in the prior
fiscal year.

Adjusted income from continuing operations in fiscal year 2013 was $39
million, or $0.40 per diluted share, compared to $111 million, or $1.14 per
diluted share, a year ago. Adjusted EBITDA was $261 million in fiscal year
2013, compared to $345 million in fiscal year 2012, primarily driven by lower
sales volumes globally. Adjusted EBITDA margin was 7.1 percent in fiscal year
2013 compared to 7.8 percent in the prior fiscal year.

Cash flow used for operating activities for the full fiscal year was $96
million as compared to cash flow provided by operating activities of $77
million in the prior fiscal year. Free cash flow for fiscal year 2013 was
negative $150 million, compared to negative $12 million in fiscal year 2012.

Fiscal Year Accomplishments

  oStrengthened company leadership

       oMeritor's Board of Directors named Ike Evans Chairman of the Board,
         Chief Executive Officer and President.
       oWilliam J. Lyons and Thomas L. Pajonas were elected to the Board of
         Directors.

  oLaunched M2016, Meritor's detailed three-year plan that defines specific
    financial measures of success for improved EBITDA margin, reduced debt and
    increased revenue through organic growth.
  oWon $120 million of incremental business from new products or new
    customers that will begin to favorably impact our financial performance by
    2016.
  oConsolidated operations

       oCompleted the transfer of the company's bus and coach business in
         China to Xuzhou Meritor Axle Co. Ltd., Meritor's majority owned joint
         venture.
       oCompleted the consolidation of remanufacturing operations from
         Mississauga, Ontario, Canada into the North American remanufacturing
         center of excellence in Plainfield, Ind.

  oCompleted the sale of Meritor's 50 percent ownership interest in Suspensys
    Sistemas Automotivos Ltda. to joint venture partner Randon S.A.
    Implementos e Participacoes.
  oReduced net debt, including retirement benefit liabilities, by $217
    million.

M2016 Priorities
The company will remain focused on M2016, its detailed three-year plan for
achieving margin, leverage, and growth targets through driving operational
excellence, focusing on customer value, reducing product costs and investing
in a high performing team. The plan focuses on the following financial targets
for driving sustainable strength:

  oAchieve 10 percent adjusted EBITDA margin for the full year 2016 based on
    expected revenue of $4.5 billion.
  oReduce net debt, including retirement benefit liabilities, by $400 million
    to less than $1.5 billion.
  oIncremental booked revenue of $500 million per year (at run-rate) between
    the beginning of fiscal year 2013 and the end of fiscal year 2016 from new
    products or new customers.

Outlook for Fiscal Year 2014
Meritor expects the following from continuing operations:

  oRevenue to be approximately $3.7 billion.
  oAdjusted EBITDA margin to be approximately 7.5 percent.
  oAdjusted earnings per share from continuing operations in the range of
    $0.30 to $0.40.
  oTotal free cash flow to be about breakeven to $25 million.

The company anticipates the following for the entire company:

  oCapital expenditures in the range of $80 million to $90 million.
  oInterest expense in the range of $105 million to $115 million.
  oCash interest in the range of $85 million to $95 million.
  oCash income taxes in the range of $45 million to $55 million.

"Despite challenges in many of our end markets, I believe we're taking the
right steps to enhance our margin performance in 2014," said Evans. "We're
also confident we'll be able to achieve the financial targets we've
established for fiscal year 2016 to create greater value for our
stakeholders."

Fourth-Quarter Fiscal Year 2013 Conference Call
Meritor will host a conference call and webcast to discuss the company's
fiscal year 2013 fourth-quarter and full-year results on Wednesday, Nov. 13,
2013, at 9 a.m. (ET).

To participate, call (617) 213-4855, 10 minutes prior to the start of the
call. Please reference passcode 67974409 when registering. Investors can also
listen to the conference call in real time or access a recording of the call
for seven days after the event by visiting the investors page on meritor.com.

A replay of the call will be available starting at 1 p.m. on Nov.13, until
11:59 p.m. Nov. 20, by calling (888) 286-8010 (within the United States) or
(617) 801-6888 for international calls. Please refer to replay passcode
38388904. To access the listen-only audio webcast, visit meritor.com and
select the webcast link from the home page or the investor page.

About Meritor
Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking
and aftermarket solutions for commercial vehicle and industrial markets.With
more than a 100-year legacy of providing innovative products that offer
superior performance, efficiency and reliability, the company serves
commercial truck, trailer, off-highway, defense, specialty and aftermarket
customers in more than 70 countries. Meritor is based in Troy, Mich., United
States, and is made up of more than 9,000 diverse employees who apply their
knowledge and skills in manufacturing facilities, engineering centers, joint
ventures, distribution centers and global offices in 19 countries. Common
stock is traded on the New York Stock Exchange under the ticker symbol MTOR.
For important information, visit the company's website at meritor.com.

Forward-Looking Statement
This release contains statements relating to future results of the company
(including certain projections and business trends) that are "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of
1995. Forward-looking statements are typically identified by words or phrases
such as "believe,"  "expect,"  "anticipate,"  "estimate,"  "should,"  "are
likely to be,"  "will" and similar expressions. SEC filings may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to reduced production for certain
military programs and our ability to secure new military programs as our
primary military programs wind down by design in future years; reliance on
major original equipment manufacturer ("OEM") customers and possible negative
outcomes from contract negotiations with our major customers, including
failure to negotiate acceptable terms in contract renewal negotiations and our
ability to obtain new customers; the outcome of actual and potential product
liability, warranty and recall claims; our ability to successfully manage
rapidly changing volumes in the commercial truck markets and work with our
customers to adjust their demands in view of rapid changes in production
levels; global economic and market cycles and conditions; availability and
sharply rising costs of raw materials, including steel, and our ability to
manage or recover such costs; our ability to manage possible adverse effects
on our European operations, or financing arrangements related thereto, in the
event one or more countries exit the European monetary union; risks inherent
in operating abroad (including foreign currency exchange rates, implications
of foreign regulations relating to pensions and potential disruption of
production and supply due to terrorist attacks or acts of aggression); rising
costs of pension and other postretirement benefits; the ability to achieve the
expected benefits of restructuring actions; the demand for commercial and
specialty vehicles for which we supply products; whether our liquidity will be
affected by declining vehicle productions in the future; OEM program delays;
demand for and market acceptance of new and existing products; successful
development of new products; labor relations of our company, our suppliers and
customers, including potential disruptions in supply of parts to our
facilities or demand for our products due to work stoppages; the financial
condition of our suppliers and customers, including potential bankruptcies;
possible adverse effects of any future suspension of normal trade credit terms
by our suppliers; potential difficulties competing with companies that have
avoided their existing contracts in bankruptcy and reorganization proceedings;
potential impairment of long-lived assets, including goodwill; potential
adjustment of the value of deferred tax assets; competitive product and
pricing pressures; the amount of our debt; our ability to continue to comply
with covenants in our financing agreements; our ability to access capital
markets; credit ratings of our debt; the outcome of existing and any future
legal proceedings, including any litigation with respect to environmental or
asbestos-related matters; and possible changes in accounting rules; as well as
other substantial costs, risks and uncertainties, including but not limited to
those detailed herein and from time to time in other filings of the company
with the SEC. These forward-looking statements are made only as of the date
hereof, and the company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise, except as otherwise required by law.

All earnings per share amounts are on a diluted basis. The company's fiscal
year ends on the Sunday nearest Sept. 30, and its fiscal quarters generally
end on the Sundays nearest Dec. 31, March 31 and June 30. All year and quarter
references relate to the company's fiscal year and fiscal quarters, unless
otherwise stated.

Non-GAAP Measures
In addition to the results reported in accordance with accounting principles
generally accepted in the United States ("GAAP") included throughout this
press release, the company has provided information regarding Adjusted income
or loss from continuing operations, Adjusted diluted earnings per share from
continuing operations, Adjusted EBITDA, Adjusted EBITDA margin, free cash flow
and free cash flow from continuing operations before restructuring payments
and net debt which are non-GAAP financial measures.

Adjusted income (loss) from continuing operations and Adjusted diluted
earnings (loss) per share from continuing operations are defined as reported
income or loss from continuing operations and reported diluted earnings or
loss per share from continuing operations before restructuring expenses, asset
impairment charges and other special items as determined by management.
Adjusted EBITDA is defined as income (loss) from continuing operations before
interest, income taxes, depreciation and amortization, non-controlling
interests in consolidated joint ventures, loss on sale of receivables,
restructuring expenses, asset impairment charges and other special items as
determined by management. Adjusted EBITDA margin is defined as Adjusted EBITDA
divided by consolidated sales. Free cash flow is defined as cash flows
provided by (used for) operating activities less capital expenditures. Net
debt including retirement liabilities is defined as total debt plus pension
assets, pension liability, retiree medical liability and other retirement
benefits less cash and cash equivalents.

Management believes that the non-GAAP financial measures used in this press
release are useful to both management and investors in their analysis of the
company's financial position and results of operations. In particular,
management believes that Adjusted EBITDA and Adjusted EBITDA margin are
meaningful measures of performance as they are commonly utilized by management
and the investment community to analyze operating performance in our industry.
Further, management uses Adjusted EBITDA for planning and forecasting future
periods. Management believes that free cash flow is useful in analyzing our
ability to service and repay debt. Net debt including retirement liabilities
is a specific financial measure which is part of our three-year plan, M2016,
to reduce debt and other balance sheet liabilities.

Adjusted income (loss) from continuing operations, Adjusted diluted earnings
(loss) per share from continuing operations and Adjusted EBITDA should not be
considered a substitute for the reported results prepared in accordance with
GAAP and should not be considered as an alternative to net income as an
indicator of our operating performance or to cash flows as a measure of
liquidity. Free cash flow should not be considered a substitute for cash
provided by (used for) operating activities, or other cash flow statement data
prepared in accordance with GAAP, or as a measure of financial position or
liquidity. In addition, these non-GAAP cash flow measures do not reflect cash
used to service debt or cash received from the divestitures of businesses or
sales of other assets and thus do not reflect funds available for investment
or other discretionary uses. These non-GAAP financial measures, as determined
and presented by the company, may not be comparable to related or similarly
titled measures reported by other companies.

Set forth on the following pages are reconciliations of these non-GAAP
financial measures to the most directly comparable financial measures
calculated and presented in accordance with GAAP.

Segment EBITDA and EBITDA Margins
Segment EBITDA is defined as income (loss) from continuing operations before
interest expense, income taxes, depreciation and amortization, noncontrolling
interests in consolidated joint ventures, loss on sale of receivables,
restructuring costs and asset impairment charges. We use Segment EBITDA as the
primary basis for the Chief Operating Decision Maker to evaluate the
performance of each of our reportable segments.



MERITOR, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In millions, except per share amounts)
                                         Quarter Ended     Twelve Months Ended
                                         September 30,     September 30,
                                         2013     2012     2013       2012
Sales                                    $ 909    $ 986    $ 3,701    $ 4,418
Cost of sales                            (803)    (873)    (3,308)    (3,933)
GROSS MARGIN                             106      113      393        485
Selling, general and administrative      (60)     (80)     (254)      (285)
Pension settlement loss                  (73)     —        (109)      —
Restructuring costs                      3        (9)      (26)       (39)
Gain on sale of investment               125      —        125        —
Gain on sale of property                 —        —        —          16
Other operating expense                  (1)      (1)      (3)        (4)
OPERATING INCOME                         100      23       126        173
Other income, net                        3        1        3          7
Equity in earnings of affiliates         8        11       42         52
Interest expense, net                    (27)     (23)     (126)      (95)
INCOME BEFORE INCOME TAXES               84       12       45         137
Provision for income taxes               (45)     (7)      (63)       (56)
INCOME (LOSS) FROM CONTINUING OPERATIONS 39       5        (18)       81
INCOME (LOSS) FROM DISCONTINUED          4        1        (2)        (18)
OPERATIONS, net of tax
NET INCOME (LOSS)                        43       6        (20)       63
Less: Net Income attributable to         (2)      (1)      (2)        (11)
noncontrolling interests
NET INCOME (LOSS) ATTRIBUTABLE TO        $ 41     $ 5      $ (22)     $ 52
MERITOR, INC.
NET INCOME (LOSS) ATTRIBUTABLE TO
MERITOR, INC.
Net income (loss) from continuing        $ 37     $ 4      $ (20)     $ 70
operations
Income (loss) from discontinued          4        1        (2)        (18)
operations
Net income (loss)                        $ 41     $ 5      $ (22)     $ 52
DILUTED EARNINGS (LOSS) PER SHARE
Continuing operations                    $ 0.38   $ 0.04   $ (0.20)   $ 0.72
Discontinued operations                  0.04     0.01     (0.02)     (0.18)
Diluted earnings (loss) per share        $ 0.42   $ 0.05   $ (0.22)   $ 0.54
Diluted average common shares            98.7     97.1     97.1       97.2
outstanding



MERITOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
                                             September 30,  September 30,
                                             2013           2012
ASSETS:
Cash and cash equivalents                    $   318        $   257
Receivables, trade and other, net            596            542
Inventories                                  414            438
Other current assets                         56             61
TOTAL CURRENT ASSETS                         1,384          1,298
Net property                                 417            417
Goodwill                                     434            433
Other assets                                 335            353
TOTAL ASSETS                                 $   2,570      $   2,501
LIABILITIES AND EQUITY (DEFICIT):
Short-term debt                              $   13         $   18
Accounts payable                             694            697
Other current liabilities                    339            313
TOTAL CURRENT LIABILITIES                    1,046          1,028
Long-term debt                               1,125          1,042
Retirement benefits                          886            1,075
Other liabilities                            335            338
Total deficit attributable to Meritor, Inc.  (850)          (1,023)
Noncontrolling interests                     28             41
TOTAL DEFICIT                                (822)          (982)
TOTAL LIABILITIES AND DEFICIT                $   2,570      $   2,501



MERITOR, INC.
CONSOLIDATED BUSINESS SEGMENT INFORMATION
(Unaudited, in millions)
                                        Quarter Ended     Twelve Months Ended
                                        September 30,     September 30,
                                        2013     2012     2013       2012
Sales:
Commercial Truck & Industrial           $ 709    $ 784    $ 2,920    $ 3,613
Aftermarket & Trailer                   233      231      898        937
Intersegment Sales                      (33)     (29)     (117)      (132)
Total sales                             $ 909    $ 986    $ 3,701    $ 4,418
EBITDA:
Commercial Truck & Industrial           $ 54     $ 63     $ 192      $ 270
Aftermarket & Trailer                   24       18       84         81
Segment EBITDA                          78       81       276        351
Unallocated legacy and corporate        (8)      (2)      (15)       (6)
 costs, net
Adjusted EBITDA                         70       79       261        345
Interest expense, net                   (27)     (23)     (126)      (95)
Provision for income taxes              (45)     (7)      (63)       (56)
Depreciation and amortization           (17)     (15)     (67)       (63)
Loss on sale of receivables             (2)      (2)      (6)        (9)
Restructuring costs                     3        (9)      (26)       (39)
Specific warranty contingency, net      5        —        (7)        —
Pension settlement losses               (73)     —        (109)      —
Asbestos-related liability              —        (18)     —          (18)
remeasurement
Gain on sale of investment              125      —        125        —
Gain on sale of property                —        —        —          16
Noncontrolling interests                (2)      (1)      (2)        (11)
Income (loss) from Continuing
Operations                              37       4        (20)       70
attributable to Meritor, Inc.
Income (loss) from Discontinued
Operations                              4        1        (2)        (18)
attributable to Meritor, Inc.
Net income (loss) attributable to       $ 41     $ 5      $ (22)     $ 52
Meritor, Inc.
Adjusted EBITDA Margin ^(1)             7.7   %  8.0   %  7.1     %  7.8     %
(1) Adjusted EBITDA margin equals Adjusted EBITDA divided by consolidated
sales.



MERITOR, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
                                                           Twelve Months Ended
                                                           September 30,
                                                           2013         2012
OPERATING ACTIVITIES
Income (loss) from continuing operations                   $  (18)      $ 81
Adjustments to income (loss) from continuing operations:
Depreciation and amortization                              67           63
Restructuring costs                                        26           39
Loss on debt extinguishment                                24           —
Equity in earnings of affiliates                           (42)         (52)
Pension and retiree medical expense                        151          53
Gain on sale of investment                                 (125)        —
Gain on sale of property                                   —            (16)
Other adjustments to income (loss) from continuing         4            21
operations
Dividends received from affiliates                         30           47
Pension and retiree medical contributions                  (153)        (140)
Restructuring payments                                     (26)         (22)
Changes in off-balance sheet accounts receivable factoring 43           (24)
Changes in assets and liabilities                          (62)         39
Operating cash flows provided by (used for) continuing     (81)         89
operations
Operating cash flows used for discontinued operations      (15)         (12)
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES           (96)         77
INVESTING ACTIVITIES
Capital expenditures                                       (54)         (89)
Proceeds from sale of property                             1            18
Proceeds from sale of investment                           182          —
Other investing activities, net                            2            3
Net investing cash flows provided by (used for) continuing 131          (68)
operations
Net investing cash flows provided by discontinued          6            28
operations
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES           137          (40)
FINANCING ACTIVITIES
Proceeds from debt issuance                                500          100
Repayment of notes and term loan                           (475)        (86)
Debt issuance costs                                        (12)         (12)
Other financing activities                                 11           —
CASH PROVIDED BY FINANCING ACTIVITIES                      24           2
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE
                                                           (4)          1
RATES ON CASH AND CASH EQUIVALENTS
CHANGE IN CASH AND CASH EQUIVALENTS                        61           40
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD           257          217
CASH AND CASH EQUIVALENTS AT END OF PERIOD                 $  318       $ 257



MERITOR, INC.
ADJUSTED INCOME AND EARNINGS PER SHARE — RECONCILIATION
Non-GAAP
(Unaudited)
(in millions, except per share amounts)
                                         Quarter Ended     Twelve Months Ended
                                         September 30,     September 30,
                                         2013     2012     2013        2012
Income (loss) from continuing operations
attributable to                          $ 37     $ 4      $  (20)     $ 70
Meritor, Inc.
Adjustments (net of tax, if applicable):
Loss on debt extinguishment              —        —        19          —
Restructuring costs                      (2)      9        25          39
Specific warranty contingency, net       (5)      —        7           —
Pension settlement losses                73       —        100         —
Gain on sale of investment               (92)     —        (92)        —
Asbestos-related liability remeasurement —        18       —           18
Gain on sale of property                 —        —        —           (16)
Adjusted income from continuing          $ 11     $ 31     $  39       $ 111
operations
Diluted earnings (loss) per share from   $ 0.38   $ 0.04   $  (0.20)   $ 0.72
continuing operations
Impact of adjustments on diluted
earnings (loss)                          (0.27)   0.28     0.60        0.42
per share
Adjusted diluted earnings per share from $ 0.11   $ 0.32   $  0.40     $ 1.14
continuing operations



MERITOR, INC.
FREE CASH FLOW — RECONCILIATION
Non-GAAP
(Unaudited, in millions)
                                           Quarter Ended   Twelve Months Ended
                                           September 30,   September 30,
                                           2013     2012   2013        2012
Cash flows provided by (used for)
operating activities — continuing          $ (22)   $ 54   $  (81)     $ 89
operations
Capital expenditures — continuing          (23)     (24)   (54)        (89)
operations
Free cash flow - continuing operations     (45)     30     (135)       —
Cash flow used for operating activities -  (1)      1      (15)        (12)
discontinued operations
Free cash flow — discontinued operations   (1)      1      (15)        (12)
Free cash flow — total company             $ (46)   $ 31   $  (150)    $ (12)
Freecash flow - continuing operations     $ (45)   $ 30   $  (135)    $ —
Restructuring payments - continuing        9        7      26          22
operations
Free cash flow from continuing operations
before restructuring                      $ (36)   $ 37   $  (109)    $ 22
payments



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SOURCE Meritor, Inc.

Website: http://www.meritor.com
Contact: Media Inquiries, Robert Herta, (248) 435-1185,
robert.herta@meritor.com, or Investor Inquiries, Carl Anderson, (248)
435-1588, carl.anderson@meritor.com