LIVONIA, Mich. — TRW Automotive Holdings Corp. reported second quarter 2010 financial results with sales of $3.7 billion, an increase of 34 percent compared to the prior year period. The company reported record GAAP second quarter net earnings of $227 million or $1.78 per diluted share, which compares to a net loss of $11 million or ($0.11) per share in the prior year period.

Excluding restructuring and fixed asset impairment charges, the impact of debt retirement and favorable tax benefits from both periods, the company reported net earnings of $221 million, or $1.73 per diluted share in the second quarter of this year, which compares to net earnings of $8 million or $0.08 per diluted share in the prior year period.

The operating performance achieved in the second quarter resulted in strong positive operating cash flow less capital expenditures of $340 million, allowing the company to continue its trend of debt reduction. At quarter end, the company achieved its lowest level of net debt since becoming an independent company in 2003.

"TRW's impressive results for the second quarter and the first six months of 2010 have been driven by our reduced cost structure and higher levels of vehicle production," said John C. Plant, president and CEO. "TRW's success at winning new business due to our leading technology portfolio combined with the overall industry recovery and dynamic growth in emerging markets provides a solid foundation for future growth."

The company reported second quarter 2010 sales of $3.7 billion, an increase of $929 million or 34 percent from the prior year period. The positive impact on sales resulting from improved global vehicle production volumes, compared to the prior year quarter, was partially offset by the negative impact of currency movements.

The company's second quarter 2010 operating income was a record $322 million compared with $44 million in the 2009 period. The 2010 and 2009 periods included restructuring and fixed asset impairment charges totaling $3 million and $26 million, respectively. Excluding these charges from both periods, operating income for the second quarter was $325 million, which compares to $70 million in the prior year period. The year-to-year improvement of $255 million was driven primarily by the positive profit impact from the higher level of sales between the two quarters and the positive impact of the Company's restructuring and cost containment actions implemented in 2009, partially offset by higher raw material prices.

Net interest expense for the second quarter of 2010 totaled $41 million, which compares to $42 million in the 2009 period.