TRW Automotive Holdings has reported a large loss in the fourth quarter, because of $US125 million of expenses for financial transactions completed in the fourth quarter, according to Dow Jones.
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The company reportedly said the expenses include the loss on the retirement of debt related to the repurchase of the company’s $600 million acquisition-related seller note from Northrop Grumman Corp.
Including these expenses, the company made a loss of $62 million or 63 cents a share, compared with last year’s loss of $1 million or 1 cent, the report said.
Excluding the expenses, the company had earnings of 34 cents a share, which was in line with the Thomson First Call mean estimate, according to Dow Jones, which added that sales increased 6.8% to $3.19 billion from $2.98 billion.
According to the report, the company expects first quarter earnings of 24-38 cents a share on revenue of about $3.1 billion, taking account of restructuring costs for various initiatives of about $30 million, which represents “a major share of the company’s planned restructuring for the year.”
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By GlobalDataFor the full year, the company expects earnings of $1.50-$1.75 a share on revenue of $12.3-$12.7 billion, Dow Jones said, noting that the company said this forecast reflects a less-favourable production environment and the impact of higher raw material prices.
Capital spending is expected to be about 4% of sales for 2005, Dow Jones added.
