TRW Reports Sharply Higher Profits
Livonia-based TRW Automotive Holdings Corp. (NYSE: TRW) reported fourth quarter net income of $204 million or $1.56 a share, up from $141 million or $1.18 a share in 2009.
Revenue was $3.71 billion, up 10 percent from $3.38 billion in 2009.
For the full year, net income was $834 million or $6.49 a share, up from $55 million or 51 cents a share a year earlier. 2010 revenue was $14.38 billion, up 24 percent from $11.61 billion a year before.
The company said fourth quarter cash flow was $236 million, and $758 million for the year. And year-end debt was a record low $768 million, down $815 million from year-end 2009.
Without restructuring charges, a net gain related to certain pension matters, debt retirement charges and favorable net tax items, TRW reported fourth quarter 2010 net income of $225 million, or $1.72 per diluted share, up from $168 million or $1.40 per diluted share a year earlier. Without those same charges 2010 full year net income was $844 million or $6.57 a share, up from $137 million or $1.26 a share in 2009.
The company said it also cut its “legacy liabilities” by closing its pension plan to further accruals, resulting in a $427 million reduction in those liabilities.
“TRW’s solid fourth quarter performance built on the positive momentum established earlier in the year and enabled the company to post its best full year results since becoming an independent company,” said John C. Plant, chairman, president and CEO. “TRW ended the year with a significantly improved capital structure including a record low net debt level and strong performance on reducing the company’s legacy liabilities. The outstanding business performance achieved in 2010 demonstrates TRW is executing the right strategy for long-term success.”
TRW’s planning assumptions for industry production volumes are approximately 12.7 million units in North America and 18.7 million units in Europe, up 7 percent and flat, respectively, compared to 2010 levels. The Company continues to expect China and the rest of world regions to remain growth engines in 2011. Based on these production levels and the Company’s expectations for foreign currency exchange rates, full year 2011 sales are expected to range between $14.9 billion and $15.3 billion, with first quarter sales expected to be approximately $3.9 billion.
“Increasing global demand for TRW’s innovative technologies combined with our low cost structure, solid liquidity and flexible balance sheet will further strengthen our position as a leading supplier to the world’s car manufacturers,” Plant said. “TRW is committed to advancing its strategic priorities of quality, cost, innovative technologies, and leveraging our global reach to ensure the Company’s success is sustained in 2011 and beyond.”
More at www.trw.com.