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LIVONIA, MI — TRW Automotive Holdings Corp. said first-quarter net income fell 96 percent as the company posted $47 million in debt-repayment costs.
The Livonia-based company, which counts seat belts, air bags, and brakes among its products, said it posted net income for the latest quarter of $2 million, or 2 cents a share.
A year earlier, TRW Automotive reported net income of $31 million for the two-month period ended Feb. 28, the date Blackstone Group LP acquired the former TRW Inc.’s automotive business from Northrop Grumman Corp. Revenue rose 3.9 percent to $2.92 billion, the company said in a statement. TRW sold shares to the public for the first time in February.
For the final month of the 2003 quarter, TRW Automotive had a net loss of $46 million, or 53 cents a share.
Shares of TRW Automotive closed Wednesday at $20.60, down 35 cents, or 1.7 percent, on the New York Stock Exchange.
The auto-parts supplier is trying to boost profit by paring expenses. The company today said it expects second-quarter sales of about $3 billion and earnings to be 57 cents to 65 cents a share. TRW is forecast to earn 62 cents a share, the average estimate of seven analysts polled by Thomson Financial.
“Earnings growth over the next few years will be driven primarily by deleveraging and a declining tax rate,” said Lehman Brothers analyst Andrew Mahony, who has an “equal weight” rating on TRW shares and doesn’t own any personally.
TRW said it trimmed debt by $494 million in the most recent period. Debt, excluding cash and cash equivalents, at the end of the quarter was $2.85 billion.
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