TRW Automotive Holdings has reported net earnings of $US13 million, or $0.13 per share for the third quarter of 2004, compared to a net loss of $34 million (-$0.39 a share) a year ago.
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Q3 sales increased 8% to $2.7 billion and the components maker reduced its gross debt by $569 million in the first nine months.
“We posted another quarter of strong earnings growth despite facing an unrelenting automotive operating environment,” said TRW president and chief executive officer John Plant.
But he cautioned: “The rapid rise in inflationary pressures impacting ferrous metals, and more recently, other commodities, has placed a significant operational and financial burden on the company this year and will do so again in 2005.”
Plant added that TRW would maintain its full-year earnings within the lower end of previously announced guidance. The revised outlook predicts sales of approximately $11.8 billion and earnings per share in the range of $0.08 to $0.13.
For the nine months to September 24, TRW reported sales of $8.8 billion and net earnings of $91 million or $0.91 per share.
In comparison, it reported sales of $6.5 billion and net losses of $100 million for the seven-month period to September 26, 2003. (This seven-month period was the reporting period following the February 28, 2003, acquisition of the former TRW Inc.’s automotive business by affiliates of Blackstone Group. Before the acquisition, the predecessor company had reported sales of $1.9 billion and net earnings of $31 million for the two-months ended February 28, 2003.)
TRW reported third-quarter 2004 sales of $2.7 billion, an increase of $203 million, or about 8%, compared to prior year sales of $2.5 billion. Operating income for third-quarter 2004 was $95 million, an increase of $22 million.
Third-quarter 2004 included pre-tax restructuring costs of approximately $5 million, while the prior year quarter included $13 million of similar charges.
Nine-month sales of $8.8 billion increased 6% compared to the prior year. Operating income during this period was $450 million, an increase of $10 million.
Nine month net earnings were $91 million or $0.91 per share.
For fourth-quarter 2004, TRW expects revenue of approximately $3.0 billion and losses per share in the range of $(0.83) to $(0.78).
