5/1/2012 8:29:00 AM
NEWS BRIEFS
TRW Automotive Reports “Solid” Opening Quarter
Lower global vehicle production volumes in Europe hampered the growth of TRW sales, including fasteners, during the opening quarter of 2012. The company reported revenue fell from a double-digit increase in 2011 to $4.2 billion — a 2% gain achieved largely by increased demand in safety products and higher North American auto builds.
Q1 GAAP net earnings fell 27% to $206 million.
“TRW achieved a solid start in 2012 as evidenced by the Company’s first quarter performance,” said CEO John Plant. “Increased demand for TRW’s innovative safety technologies helped offset the decline in vehicle production in Europe and demonstrates the strength and diversity of the Company’s market position.”
Q1 operating income declined 11% to $331 million, driven by a higher mix of lower margin business, planned increases in costs to support future growth, and the negative profit impact from higher raw material prices. EBITDA slipped 12% to $439 million.
Moving forward, TRW expects full year industry production volumes to total 14.7 million units in North America (a 5% increase) and 18.9 million units in Europe, driving full-year revenue to $16.3 billion to $16.6 billion, with second quarter sales expected to be approximately $4.2 billion. ©2012 GlobalFastenerNews.com
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