TRW Automotive Holdings Corp.
) showcased its adaptive side airbag technology at the 11th
International Symposium & Exhibition on Sophisticated Car
Occupant Safety Systems. The airbag, equipped with flexi adaptive
vent, will offer better safety to the occupant in different
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TRW is planning to start production of the new side airbag system
from 2013. The system features tether mechanism, which closes the
vent during a severe crash. The new side airbag system also helps
to maintain pressure in the airbag for a longer duration,
reducing the severity of a crash. The latest adaptive side
airbags also respond to the parameters such as the speed and
force of the crash, thus providing enhanced protection to the
In the wake of the introduction of Euro New Car Assessment
Program (NCAP) ratings in 2015 with focus on rear seat safety,
the company displayed a range of technologies and concepts, which
will be enhancing the protection of the occupants in case of any
collision. The new innovations includes Active Buckle Lifter
(ABL) seat belt system, roof airbag and Dynamic Locking Tongue'
(DLT) seat belt.
The ABL seat belt system helps the occupants to fasten their seat
belts by raising the buckle, and remove some dynamic and critical
driving situations. The production will start from 2013. The roof
airbag will be produced from 2014. The company plans to enhance
the safety of rear seat passengers with this technology. DLT seat
belt will be used to reduce loads on the occupant's chest.
TRW reported an adjusted (excluding special items) earnings per
share of $1.24 in the third quarter of 2012, down 9.5% from $1.37
in the year-ago quarter. The year-over-year decline in earnings
was due to higher effective tax rate. However, the results
surpassed the Zacks Consensus Estimate by 8 cents per share.
Revenues in the quarter edged up 1.3% to $3.96 billion, beating
the Zacks Consensus Estimate of $3.90 billion. The increase was
driven by higher demand for the company's active and passive
safety products, higher vehicle production in North America and
improved global sales. This was partially offset by lower vehicle
production in Europe and adverse currency translations effects.
Headquartered in Michigan, U.S., TRW Automotive is one of the
world's largest manufacturers of advanced technology products and
services for the automotive markets. Together with continuous
research and development, the company is well positioned to
benefit from the changing demands of both established and
emerging markets for advanced and affordable safety solutions.
Its major customers include
Ford Motor Co.
General Motors Company
Currently, TRW retains a Zacks #3 Rank, which translates into a
short-term Hold rating. We have a long-term (more than 6 months)
Neutral recommendation on the stock.