TRW has reported that, excluding special items, its first-quarter net loss was $115m, which compares to net earnings of $102m in the same period last year.
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It said the results reflected the ‘unprecedented decline’ in global vehicle production during the quarter.
TRW reported sales of $2.4bn, a decrease of 42.3% compared to the prior year and a GAAP first quarter net loss of $131m, which compares to net earnings of $94m in the same quarter last year.
“The automotive industry continues to face extraordinary challenges resulting from the global economic crisis and significantly reduced automotive production levels, the effects of which are reflected in our first quarter results announced today,” said John C. Plant, President and Chief Executive Officer. “TRW continues to take decisive actions to mitigate those challenges, focused on aligning our business with the current industry conditions, while ensuring the strength of our industry leading technology positions.”
TRW said The 2009 quarter was adversely impacted by lower sales in all geographic regions resulting from sharply reduced vehicle production volumes. Currency movements during the quarter also had a negative impact on sales compared to the same period a year ago.
TRW currently expects full year production to total 8.2m units in North America and 15.9m units in Europe.
Full-year sales for TRW are now expected to range between $10.1bn and $10.5 billion, with second quarter sales expected to be approximately $2.5bn. In response to the continued negative economic and automotive industry conditions, the company now expects its cash restructuring expense to total approximately $90m for 2009.
“As expected, 2009 is shaping up to be another challenging year for the automotive industry. We remain on track with our restructuring plans and are cautiously optimistic that the stimulus and scrappage programs implemented around the world will lead to moderately higher vehicle production levels in the second half of the year,” said Mr. Plant. “Preserving our liquidity and taking swift, decisive actions to help mitigate the effects of the downturn remain our top priorities in 2009.
