TRW Net Income, Sales Rise
LIVONIA (WWJ) — TRW Automotive Holdings Corp. (NYSE: TRW), the global producer of active and passive safety systems, today reported second quarter net income of $248 million or $1.99 a share, up from $220 million or $1.71 a share in the second quarter of 2012.
Revenue was $4.51 billion, up 6 percent from $4.24 billion a year earlier.
The company also reported adjusted earnings, that exclude one-time special items from TRW’s current and prior year quarterly results. Those earnings were $252 million or $2.02 a share, up from $221 million or $1.72 a share a year earlier.
“TRW’s solid second quarter results provides evidence the Company is on track and focused on achieving its key objectives for the year,” said John C. Plant, chairman and CEO.
TRW said its higher second quarter sales were driven by increasing demand for its products as well as higher vehicle production volumes in North America and China.
Net interest expense for the second quarter of 2013 totaled $34 million, which compares to $27 million in the 2012 period. In addition, a net loss on retirement of debt totaling $5 million was recognized in the second quarter of 2013.
Tax expense for the second quarter of 2013 was $97 million, which compares to a tax expense of $92 million in the prior year period. The 2013 period included a $2 million net tax benefit related to debt retirement, compared to the 2012 period which included a tax benefit of $1 million related to restructuring actions.
For the first half, net income was $410 million or $3.28 a share, down from $426 million or $3.30 a share a year earlier. Revenue was $8.73 billion, up from $8.45 billion a year earlier. The company said restructuring charges, higher interest expense and a higher mix of lower-margin business contributed to the decline in profitability.
Excluding one-time special items, the company reported net earnings of $441 million in the first half of 2013, or $3.52 a share, compared to net earnings of $432 million or $3.34 a share in the first half of 2012.
TRW expects full year industry production volumes to total 16.1 million units in North America and 18.6 million units in Europe. Based on these production levels, the Company’s first half performance and expectations for foreign currency exchange rates, full year 2013 sales are now expected to range between $16.8 billion and $17 billion, with third quarter sales expected to be approximately $4.1 billion.
“Although we are encouraged by early signs of stabilization in the European vehicle market, we remain cautious on the region in the near-term,” Plant said. “Managing through the difficult economic environment in Europe, while building on TRW’s solid performance achieved through the first half of 2013 is essential to achieving TRW’s full year goals and further positioning the Company for long-term success.”
To listen in on a replay of a conference call discussing the results. call (855) 859-2056 in the United States and (404) 537-3406 elsewhere. The replay code is 91667170. A replay of the conference call will also be available at http://www.trw.com.
With 2012 sales of $16.4 billion, TRW Automotive operates in 25 countries and employs approximately 65,000 people worldwide. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services.