LIVONIA, Mich. – TRW Automotive Holdings Corp. has reported first quarter 2015 financial results with sales of $4.1 billion, an increase of 7 percent compared to the prior year period, excluding the effects of currency and divested businesses.
The first quarter 2015 results include a pre-tax gain of $186 million on the previously announced sale of TRW’s Engine Valve business to Federal-Mogul Holdings Corp., which closed during the quarter. Excluding this gain and other special items from the TRW’s current and prior year quarterly results, the company reported first quarter 2015 net earnings of $235 million, or $2.01 per diluted share, an increase of 11 percent compared to last year’s first quarter earnings of $1.81 per diluted share.
As previously announced, the company entered into a definitive agreement with ZF Friedrichshafen AG on Sept. 15, 2014, under which ZF will acquire all outstanding shares of TRW for $105.60 per share in an all-cash transaction. The transaction is expected to close by the end of June 2015.
“TRW achieved a strong start to 2015, which will provide a solid foundation as we enter the merger with ZF,” said John Plant, chairman and CEO. “The agreement signed with ZF, which we expect to close during the second quarter, provides significant benefits for our shareholders who will receive full and certain value for their shares, as well as for our employees, customers and communities all of which will reap the benefits of being part of a larger, more diversified global organization.”
First Quarter 2015
The company reported first quarter 2015 sales of $4.1 billion, a decrease of $300 million from the prior year period.
During the first quarter of 2015, TRW received net cash proceeds of $313 million relating to the sale of substantially all of TRW’s Engine Valve business, which closed during the first quarter.
As of April 3, 2015, the company had $1.6 million of debt and $1,017 million of cash and cash equivalents, resulting in net debt (defined as debt less cash and cash equivalents) of $577 million.
2015 Outlook
TRW’s planning assumptions for industry production volumes in 2015 are approximately 17.4 million units in North America and 20 million units in Europe, up 2 percent and flat, respectively, compared to 2014 levels. The company continues to expect expansion in vehicle production volumes in China and rest of world regions. Based on these production levels, the negative impact of lost sales related to divested businesses, primarily the previously announced sale of TRW’s Engine Valve business, and the company’s expectations for foreign currency exchange rates, full year 2015 sales are expected to range between $16.2 billion and $16.5 billion.
