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TRW Automotive swings to a loss in the 1st quarter, raises guidance for year

TRW Automotive swings to a loss in the 1st quarter, raises guidance for year

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, and raised its outlook for the year.
The company which specializes in auto safety systems lost $86 million (euro63.29 million), or 87 cents per share, for the three months ended March 30 compared with a profit of $47 million (euro34.59 million), or 46 cents per share, a year ago.
The latest results included charges of $147 million (euro108.18 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 (euro0.96 billion) in outstanding debt.
The 2006 quarter included debt retirement charges of $57 million (euro41.95 million).
Excluding the items, TRW said it earned $61 million (euro44.89 million), or 60 cents per share, in the first quarter.
That result beat Wall Street expectations. Eight 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 (euro2.63 billion) from $3.4 billion (euro2.5 billion). Analysts expected revenue of $3.47 billion (euro2.55 billion).
The company said its results benefited from the positive effect of foreign currency translation 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.
The company's shares fell a penny to $37.03 in midday trading on the New York Stock Exchange after touching a 52-week high of $37.99 earlier in the session.
General Motors Corp., Ford Motor Co. and DaimlerChrysler AG 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.
TRW said it also dealt with a business disruption caused by a roof collapse at a Brazil plant and lackluster performance in its Automotive Components group.
As with many suppliers, TRW said it is focusing on and benefiting from growth outside North America and western Europe.
Plant said sales in Asia, South America were up 23 percent. North American vehicle production volumes declined 8 percent and western Europe volumes were down 2 percent, but eastern Europe saw a 2 percent increase and Asia and South America jointly saw a 5 percent increase _ driven mainly by growth in India, China and South Korea.
Plant said he expects those trends to continue in the second quarter as the company continues to move plants and its supply base to low-cost countries.
TRW increased its full-year outlook for earnings, to a range of $2.05 (euro1.51) to $2.35 (euro1.73) from a range of $1.85 (euro1.36) to $2.15 (euro1.58). It also raised its outlook for sales, forecasting in a range between $13.8 billion (euro10.16 billion) and $14.2 billion (euro10.45 billion).
In a note to investors, JPMorgan analyst Himanshu Patel said TRW's international operations appear to have done better than expected and TRW's full-year guidance appears to be conservative.
The Livonia-based company employs about 63,800 people in 26 countries.
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On the Net:
http://www.trw.com


Updated : 2021-04-19 12:12 GMT+08:00