TRW Automotive Holdings Corp. ( TRW )
witnessed a 14% fall in adjusted earnings per share to $1.72 in the
second quarter of 2012 compared to $1.99 in the corresponding
quarter last year.
However, it surpassed the Zacks Consensus Estimate of $1.55. In
absolute terms, profits declined 16% to $221 million from $264
million in the year-ago quarter.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
TRW AUTOMTV HLD (TRW): Free Stock Analysis
(VLKAY): ETF Research Reports
To read this article on Zacks.com click here.
Reported earnings were $220 million or $1.71 per share compared
with $293 million or $2.21. The decline in profits was attributable
to a higher effective tax rate along with increased expenditure for
future growth initiatives and higher raw material prices.
Revenues in the quarter grew marginally 0.1% to $4.24 billion,
surpassing the Zacks Consensus Estimate of $4.19 billion. Strong
demand for the company's broad array of active and passive safety
products and rise in vehicle production volumes in North America
favorable affected revenues. However, lower vehicle production in
Europe and the negative impact of currency movements adversely
Gross profit went down 7.9% to $476 million from $517 million in
the year-ago quarter. Adjusted operating profits in the quarter
dropped 3% to $339 million from $349 million in the prior year. The
decline was driven by higher expenditures related to future growth
and increased raw material prices.
TRW Automotive's cash and cash equivalents declined to $966
million as of June 29, 2012, compared with $1.24 billion as of
December 31, 2011. Total debt declined to $1.47 billion from $1.53
billion as of December 31, 2011.
In the first six months of 2012, the company had cash flow from
operating activities of $89 million, a significant decline from
$352 million in the year-ago quarter. Capital expenditures
increased to $200 million from $167 million a year ago.
TRW Automotive expects total industry production of 14.9 million
units in North America and 18.8 million units in Europe for the
full year 2012. It also hopes that production volume in China will
improve in the future. Based on these production levels and
expected foreign currency exchange rates, sales are expected
between $16.2 billion and $16.4 billion for the year, including
$3.9 billion in the third quarter.
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. The company supplies to more
than 40 major vehicle manufacturers and 250 nameplate
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. ( F ), General Motors Company (
and Volkswagen AG ( VLKAY
). Currently, it retains a Zacks #3 Rank, which translates into a
short-term (1 to 3 months) Hold rating.