LIVONIA, Mich. – TRW Automotive Holdings Corp. has reported fourth quarter 2012 financial results, with sales of $4 billion, an increase of 1 percent compared to the prior year period (up 4 percent excluding the impact of currency movements and divestitures). The company reported GAAP fourth quarter net earnings of $419 million or $3.26 per diluted share.
Excluding special items from the company’s current and prior year quarterly results, the company reported fourth quarter 2012 net earnings of $199 million, or $1.55 per diluted share, which compares to net earnings of $238 million or $1.84 per diluted share in the prior year period.
The company’s full year 2012 sales grew to a record $16.4 billion, an increase of 7 percent compared to 2011 excluding the impact of currency movements and divestitures. For the year, GAAP net earnings were $1,008 million, or $7.83 per diluted share. Similar to the company’s quarterly results, both the 2012 and 2011 full year results contain specialitems. Excluding special items, the company reported full year 2012 net earnings of $788 million, or $6.14 per diluted share, which compares to netearnings of $971 million, or $7.42 per diluted share in 2011. Compared to last year’s pro forma adjusted results (reflecting the U.S. deferred tax asset valuation allowance reversal), diluted earnings per share in 2012 were slightly higher compared to full year 2011.
"2012 was a successful year for TRW as the company delivered solid financial performance, as evidenced by our fourth quarter and full year results reported today. We also continued to execute our significant growth strategy and initiated a $1 billion share repurchase program," said John Plant, chairman and CEO. "TRW’s success and ability to build on its positive momentum, despite the challenges the automotive industry faced in Europe during the year, demonstrate the company’s resilience and strong market position."
The company reported record 2012 sales of $16.4 billion, an increase of $200 million compared to prior year sales (up 7 percent excluding the impact of currency movements and divestitures). The increase in sales resulted from a higher level of demand for TRW’s broad array of active and passive safety products, improved vehicle production volumes in North America and a higher level of module sales globally, partially offset by lower vehicle production volumes in Europe and the negative impact of currency movements between the two periods.
During 2012, TRW used approximately $321 million of cash to repurchase more than 5.6 million shares of its common stock and retire $48 million of face value senior notes.
As of Dec. 31, 2012, the company had $1,462 million of debt and $1,223 million of cash and cash equivalents, resulting in net debt (defined as debt less cash and cash equivalents) of $239 million. Both total debt and net debt set historic lows for the company, $70 million and $52 million lower than the balances at the end of 2011, respectively.
2013 Outlook
TRW’s planning assumptions for industry production volumes in 2013 are approximately 15.8 million units in North America and 18.3 million units in Europe, up 3 percent and down 4 percent, respectively, compared to 2012 levels. The company said it continues to expect expansion in vehicle production volumes in China and rest of world regions.Based on these production levels and the company’s expectations for foreigncurrency exchange rates, full year 2013 sales are expected to range between$16.4 billion and $16.7 billion, with first quarter sales expected to be approximately $4.1 billion.
"TRW enters 2013 from a position of strength," Plant said. "Increased demand for the company’s innovative products combined with our leading customer, product and regional diversification will help offset the difficult economic environment and lower vehicle production levels that are expected in Europe. Remaining focused onexecuting the company’s growth strategy, while mitigating the negative impact related to the industry challenges in Europe, especially in the first half of the year, are key objectives in 2013."
