USA: TRW Comments On Expected Third Quarter Results
TRW Inc. (NYSE:TRW - news) announced today that it expects third quarter earnings per share to be below current consensus estimates of $1.05 per share.
The shortfall is primarily the result of a further weakening of foreign currencies, production cutbacks announced by Ford, weaker than expected revenues from the company's space and electronics business, increased investments in technology bank initiatives, and a higher level of interest expense. As a result, earnings per share are expected to be reduced by approximately $0.19 to $0.24 in the third quarter. These issues may have a continuing impact on the fourth quarter.
TRW Inc. (NYSE:TRW – news) announced today that it expects third quarter earnings per share to be below current consensus estimates of $1.05 per share.
The shortfall is primarily the result of a further weakening of foreign currencies, production cutbacks announced by Ford, weaker than expected revenues from the company’s space and electronics business, increased investments in technology bank initiatives, and a higher level of interest expense. As a result, earnings per share are expected to be reduced by approximately $0.19 to $0.24 in the third quarter. These issues may have a continuing impact on the fourth quarter.
Despite the anticipated earnings shortfall, the company believes it will achieve its previously announced cash flow goal of reducing net debt by approximately $300 million in the second half of 2000.
During the third quarter TRW will also recognize after-tax charges relating to the following events:
Consolidation of air bag operations — TRW’s occupant safety systems business will consolidate two inflator propellant manufacturing operations into one site in order to optimize operating efficiencies. As a result, a charge of approximately $36 million, primarily non-cash, will be recognized in the third quarter.
Product recall and inventory adjustments — In July a commercial truck recall was issued involving approximately 200,000 parts that were improperly heat treated by TRW’s commercial steering systems business during a 12-week period of 1999. In addition, adjustments relating to inventory and operating systems at two automotive manufacturing facilities have been identified. These issues will result in approximately $14 million of charges in the third quarter.
TRW will report its third quarter 2000 results on October 18, 2000.
TRW provides advanced-technology products and services for the global automotive, aerospace, and information systems markets.
Sign up for our daily news round-up!
Give your business an edge with our leading industry insights.
Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.
Excellence in Action Continental has secured the Window Displays Innovation Awardin the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.
