The Livonia automotive safety systems maker TRW Automotive Holdings Corp. (NYSE: TRW) reported record net income of $227 million or $1.78 a share in the second quarter of 2010, compared to a loss of $11 million or 11 cents a share in the second quarter of 2009. Revenue was $3.7 billion, up 34 percent from a year earlier.
Excluding restructuring and fixed asset impairment charges, the impact of debt retirement and favorable tax benefits from both periods, the company reported net earnings of $221 million, or $1.73 per share, in the second quarter, up from net income of $8 million or 8 cents a share in the prior year period.
The operating performance achieved in the second quarter resulted in strong positive operating cash flow less capital expenditures of $340 million, allowing the company to continue its trend of debt reduction. At quarter end, the Company achieved its lowest level of net debt since becoming an independent company in 2003.
“TRW’s impressive results for the second quarter and the first six months of 2010 have been driven by our reduced cost structure and higher levels of vehicle production,” said John C. Plant, president and CEO. “TRW’s success at winning new business due to our leading technology portfolio combined with the overall industry recovery and dynamic growth in emerging markets provides a solid foundation for future growth.”
The company said sales rose due to improved global vehicle production, partially offset by unfavorable currency translations.
TRW said it expects its 2010 revenue to be between $13.2 billion and $13.6 billion.
To listen in on a replay of an investor conference call discussing these results, call (800) 642-1687 in the United States and (706) 645-9291 elsewhere. The replay code is 85617970. A live audio Webcast and replay of the conference call will also be available at www.trw.com.
(c) 2010, WWJ Newsradio 950. All rights reserved.