TRW has reported a 24 percent increase in operating earnings and a 20 percent increase in operating earnings per share for the first quarter of 2002.


According to chairman Philip A. Odeen, “TRW again demonstrated its dedication to meeting commitments, strong profit growth, and debt reduction.
“Restructuring actions and increased productivity, coupled with the strengthening economy and the US government’s increased defence spending, well position TRW for a strong year. For these reasons, we are increasing our 2002 guidance to $3.55 – $3.60, from $3.30.”


Financial highlights of the quarter included operating earnings increased 24 percent to $92 million, compared with $74 million in 2001. Operating earnings per share, which excluded extraordinary and unusual items, increased 20 percent to $0.71 from last year’s $0.59 per share, exceeding analysts’ consensus estimates by seven cents.


Net debt was maintained at $5.5 billion and TRW’s cash usage improved $139 million to only $34 million during the first quarter of 2002, compared with 2001. This was due primarily to lower capital expenditures and investments in affiliates.
Sales of $4.1 billion and segment profit of $227 million were down two percent and four percent, respectively, from the first quarter 2001.


Automotive profits were unchanged despite declining revenues as strengthening North American build rates and productivity initiatives offset European volume declines and pricing pressure.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Corporate expenses and financing costs declined 44 percent and 18 percent, respectively, to a combined $126 million, principally due to reduced personnel and related costs resulting from the 2001 corporate restructuring, deleveraging initiatives, and lower interest rates.


GAAP net earnings were $91 million, a 17 percent increase to $0.71 per share, which compares with $78 million, or $0.62 per share, in the same quarter of 2001, after adjustment to reflect the effects of SFAS 142.


GAAP net earnings for the first quarter of 2001 were $55 million.
Fiscal 2002 earnings reflect TRW’s adoption of FASB’s Statement of Financial Accounting Standards No. 142 (SFAS 142) “Goodwill and Other Intangible Assets,” adopted January 1, 2002, whereby goodwill is no longer being amortised.


“The company’s strong first quarter results reflect the organization-wide changes and cost- saving initiatives we undertook last year. This positive momentum will continue as our deleveraging initiatives and restructuring actions contribute additional savings,” Odeen said.


“Our recently announced strategic plan, which calls for the sale of aeronautical systems and the spin-off of the automotive business, positions TRW to deliver significantly greater value to our shareholders through the establishment of two pure-play, independent, and well-capitalised companies.


“TRW’s automotive business is among the world’s top ten Tier 1 suppliers, with broad customer and geographical diversification. Industry projections for this year’s North American light vehicle production, which affect nearly half of our automotive sales, have increased over the past several months,” Odeen added.


Automotive sales for the first quarter of 2002 were $2.6 billion, essentially unchanged compared to the prior year.  A slight improvement in North American light vehicle production volumes and incremental sales from new products, such as electrically assisted steering (EAS) modules and side-impact air bags, largely offset the negative effects of a difficult European production environment, currency translation, pricing, and sales lost due to businesses divested in 2001.


Profit margin in the quarter improved to 4.6 percent, resulting in operating profit of $119 million. This margin improvement resulted from the favourable impact of cost reduction programmes that more than offset the effects of pricing, currency translation, and new product mix.


During the quarter, TRW automotive began shipping its electrically powered steering (EPS) product to Nissan, following the successful launch of the product with FIAT.  In total, EAS revenues are expected to grow from approximately $200 million in 2001 to more than $1 billion in 2006.