Meritor, Inc. reported earnings results for the first quarter of 2013. For the period, the company's revenue was $891 million, a decrease of $268 million or 23% from the first quarter of fiscal year 2012. This decrease was primarily driven by lower Commercial Truck production globally. Adjusted EBITDA decreased $33 million to $46 million, compared to $79 million a year ago, due to a significant decline in sales the company experienced this quarter. However, the downside conversion of this revenue decline was limited to 12%, due in large part to the benefits associated with lower material cost and the actions the company have executed during the past 12 months. Adjusted loss from continuing operations of $11 million or $0.11 per share, compared to adjusted income of $11 million or $0.12 per share in the same period last year. The decrease in 2013 was primarily associated with the impact of substantially lower revenue and a reduction in affiliate earnings. Free cash flow from continuing operations before restructuring was negative $91 million, down from negative $10 million in the first fiscal quarter of 2012. This decrease in free cash flow was primarily due to higher working capital this quarter.

The company now expects sales in fiscal year 2013 to be approximately $3.8 billion, down around $600 million from 2012 and $200 million lower than what the company was expecting in November 2012. The company's revenue outlook is based on the company market assumptions. The company's capital expenditures are expected to be in the range of $65 million to $75 million, as the company continues to manage investments in line with market dynamics, but still investing to drive operational efficiency and productivity improvements. The company announced that interest expense is now expected to be in the range of $95 million to $105 million, higher than it's original guidance due to the new convertible debt transaction recently executed.