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TRW Automotive swings to a loss in the 1st-quarter on charges related to debt retirement

TRW Automotive swings to a loss in the 1st-quarter on charges related to debt retirement

Auto parts supplier TRW Automotive Holdings Corp. said Wednesday it swung to a loss in the first quarter, due mostly to charges for the retirement of debt.
The company said it posted a quarterly loss of $86 million (euro63.21 million), or 87 cents per share, for the three months ended March 30 compared with a profit of $47 million, or 46 cents per share, during the same period last year.
Results from the most recent quarter included charges of $147 million (euro108.05 million) related to debt retirement. The company issued $1.5 billion (euro1.1 billion) in debt during the quarter and offered to repurchase $1.3 billion (euro960 million) in outstanding debt.
Excluding the items, TRW said it earned $61 million (euro44.84 million), or 60 cents per share in the first quarter.
Analysts polled by Thomson Financial forecast a profit in the latest quarter of 53 cents per share. Thomson estimates usually exclude special items.
Revenue grew 5 percent to $3.57 billion (euro2.62 billion) from $3.4 billion. Analysts expected revenue of $3.47 billion (euro2.55 billion).
The company said its results benefited from the positive effect of foreign currency exchange and growth in its safety products business, but a continued decline in North American vehicle production and price cuts to automakers partially offset those gains.
TRW Chief Executive John Plant called the results "consistent with our expectations despite continued North American industry pressures."
Domestic automakers General Motors Corp., Ford Motor Co. and DaimlerChrysler Corp. have slashed production in recent months as demand for their cars and trucks weakened, amid a sluggish economy, rising gasoline prices and increased competition from foreign manufacturers.


Updated : 2021-07-24 14:05 GMT+08:00