TRW has reported net earnings of US$47m for the first quarter of 2006, slightly down compared to the first quarter of 2005 when net earnings were $50m.
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However adjusted for expenses of $57m for loss on retirement of debt associated with the Lucas Industries subsidiary, first quarter earning would have been US$104m.
The improved performance came from increased sales as well as a lower level of tax expense than anticipated.
First quarter sales were up 5.3% on a year earlier to $3.4bn. The growth came from sales by Dalphi Metal Espana, which TRW acquired in October 2005, as well as increased sales from safety products and higher vehicle production in Europe. In a statement the company said that growth in these areas was partially offset by the negative effect of foreign currency translation and price reductions provided to customers.
Operating income for the first quarter of 2006 was $227m, an increase of $75m compared to a year earlier.
Looking forward to the rest of the year, John Plant, president and chief executive officer, said that he expects the business environment to worsen due to heightened commodity inflation and softer industry production schedules.
TRW is forecasting revenues of around $13bn, according to Reuters. For the second quarter TRW is expecting revenue of around $3.4bn and operating income slightly below a year ago.
