TRW Automotive Reports Third Quarter 2008 Financial Results; Provides Update on 2008 Outlook - aftermarketNews

TRW Automotive Reports Third Quarter 2008 Financial Results; Provides Update on 2008 Outlook

The company reported third-quarter 2008 sales of $3.6 billion, an increase of $97 million or 2.8 percent over the prior year period.

LIVONIA, Mich. — TRW Automotive Holdings Corp. has reported third-quarter 2008 financial results with sales of $3.6 billion, an increase of 2.8 percent compared to the same period a year ago. The company reported a third quarter net loss of $54 million or (53 cents) per diluted share, which compares to net earnings of $23 million or 22 cents per diluted share in the prior year period. Third quarter 2008 net cash flow from operating activities was $79 million, which exceeded the level generated in the prior year.

The company reported third-quarter 2008 sales of $3.6 billion, an increase of $97 million or 2.8 percent over the prior year period. The 2008 quarter benefited from the positive effect of foreign currency translation and the increase in sales of lower margin modules. These positive factors were substantially offset by lower sales of core products in both North America and Europe resulting from sharply reduced light vehicle production volumes\

Operating income for the third-quarter 2008 was $12 million, which compares to $95 million in the prior year period. The year-to-year decrease was driven by a number of factors, the most significant of which were the impact of lower sales, excluding currency, and the negative sales mix including a decline in higher margin core product sales replaced by lower margin module sales. Other negative factors included net currency losses and increased commodity costs.

As a result of the negative industry conditions, the company has increased its level of restructuring actions as it focuses on reducing its cost base, which also contributed to a lower level of operating profit between quarters. In the 2008 third quarter, restructuring charges and asset impairments totaled $32 million compared to $13 million in the prior year period.

The company reported a third-quarter 2008 net loss of $54 million, or (53 cents) per diluted share, which compares to net earnings of $23 million or 22 cents per diluted share in the 2007 period.

The company said it expects full year sales to be approximately $15.3 billion (including fourth quarter sales of approximately $3.1 billion). Full year net earnings per share are expected to be in the range of 90 cents to $1.10, which includes pre-tax restructuring and asset impairment charges for known actions forecasted at approximately $95 million (including approximately $30 million in the fourth quarter).

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