TRW Automotive Holdings – TRW – Solid performance through the first half of 2012
TRW Automotive Holdings Corp. (NYSE: TRW), the global leader in active and passive safety systems, reported second quarter 2012 financial results with sales of $4.2 billion, about equal compared to the prior year period (up over 8% excluding the impact of currency movements and divestitures). The Company reported GAAP second quarter net earnings of $220 million or $1.71 per diluted share, which compares to net earnings of $293 million or $2.21 per diluted share in the prior year period. A higher effective tax rate in the current period combined with a higher level of costs related to future growth initiatives and higher raw material prices were the primary reasons for the decline in diluted earnings per share between the two periods.
TRW’s current and prior year quarterly results both contain special items. The current year quarter included restructuring charges and related tax benefits while the prior year period included a gain associated with the resolution of a commercial matter, debt retirement charges and favorable tax benefits. Excluding special items, the Company reported second quarter 2012 net earnings of $221 million, or $1.72 per diluted share, which compares to net earnings of $264 million or $1.99 per diluted share in the prior year period.
“Supported by a strong market position and increasing demand for the Company’s innovative safety technologies, TRW continued to move forward in the second quarter despite a notable decline in European vehicle production,” said John C. Plant, Chairman and Chief Executive Officer. “TRW’s solid performance through the first half of 2012 provides a firm foundation for TRW to reach its full year goals.”
TRW Second Quarter 2012
The Company reported second quarter 2012 sales of $4.2 billion, an increase of $5 million from the prior year period (up over 8% excluding the impact of currency movements and divestitures). The impact of increasing demand for TRW’s broad array of active and passive safety products and improved vehicle production volumes in North America were primarily offset by lower vehicle production volumes in Europe and the negative impact of currency movements between the two periods.
TRW First Half 2012
The Company reported first half 2012 sales of $8.4 billion, an increase of $104 million compared to prior year sales. The increase in sales resulted from a higher level of demand for TRW’s broad array of active and passive safety products and improved vehicle production volumes in North America, partially offset by lower vehicle production volumes in Europe and the negative impact of currency movements between the two periods.
TRW 2012 Outlook
TRW expects full year industry production volumes to total 14.9 million units in North America and 18.8 million units in Europe. Within the forecast for North America, the Company expects production for the Detroit Three manufacturers will be up approximately 6% compared with their 2011 production levels.
About TRW
With 2011 sales of $16.2 billion, TRW Automotive ranks among the world’s leading automotive suppliers.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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