TRW has reported a first quarter net loss of US$86m, down from a net profit of US$47m a year ago. Sales were up five percent in Q1 2007 to US$3.6bn.
The company cited difficult industry conditions, including lower North American customer vehicle production, and commodity inflation, as reasons for the decline. In addition it said that there was an an adverse mix of products sold and a higher tax rate between the two periods. Additional factors included a business disruption caused by a roof collapse at a facility in Brazil and underperformance in the Automotive Components group.
“The company is on track to achieve its full year objectives as the first quarter operating results were consistent with our expectations despite continued North American industry pressures,” said John Plant, president and chief executive officer.
Mr. Plant added, “Our steady financial performance can be attributed to the strength of the company’s safety portfolio, customer diversification and global sales balance, together with the benefits derived from our extensive cost reduction and restructuring programs.”
Positive impacts in the quarter were the effects of exchange rates and the growth of safety products, although this did include a higher concentration of lower margin module business.
Operating income for first-quarter 2007 was $175m, which compares to $227min the prior year period.
The company revised its full year sales outlook to between US$13.8bn and US$14.2bn.