LIVONIA, Mich. — TRW Automotive Holdings Corp. has reported second quarter 2011 financial results with sales of $4.2 billion, an increase of 16 percent compared to the prior year period.
The company reported GAAP second quarter net earnings of $293 million or $2.21 per diluted share, an increase of 24 percent compared to net earnings of $227 million or $1.78 per diluted share in the prior year period.
TRW’s current and prior year quarterly results both contain special items. The current year quarter included a gain associated with the resolution of a commercial matter, debt retirement charges and favorable tax benefits while the prior year period included restructuring charges, the impact of debt retirement and favorable tax benefits. Excluding these special items, the company reported net earnings of $264 million, or $1.99 per diluted share in the second quarter of this year, which compares to net earnings of $221 million or $1.73 per diluted share in the prior year period.
"TRW’s record results for the second quarter and first six months of 2011 have been driven by the company’s strong market position and focus on profitably growing the business," said John Plant, chairman and CEO. "The company’s outstanding business performance and cash generation achieved in the first half of this year not only provides a solid foundation for the remainder of this year, it also supports key growth initiatives that will further position TRW for long-term success."
Excluding special items, the company reported second quarter 2011 net earnings of $264 million, or $1.99 per diluted share, which compares to net earnings of $221 million or $1.73 per diluted share in the 2010 period.
The company reported first half 2011 sales of $8.3 billion, an increase of $1.1 billion or 15 percent compared to prior year sales. TRW said the increase in sales resulted from the higher level of global vehicle production volumes compared to first half 2010, increasing demand for TRW’s innovative technologies and the positive impact of currency movements between the two periods.
For the first half of 2011, the company reported operating income of $740 million, which compares to $622 million of operating income in the prior year period.
Excluding special items, the company reported net earnings of $556 million in the first half of 2011, or $4.20 per diluted share, which compares to net earnings of $430 million or $3.38 per diluted share in the first half of 2010.
TRW expects full year production to total 13 million units in North America and 20 million units in Europe. Based on these production levels and the company’s expectations for foreign currency exchange rates, full year 2011 sales are now expected to range between $16.2 billion and $16.4 billion, with third quarter sales expected to be approximately $3.9 billion.
"Vehicle production schedules remained robust during the first half of 2011 as the industry worked hard to avoid and mitigate production disruptions due to supply chain shortages caused by the March earthquake in Japan; however, normal seasonality will lead to a decline in production levels, primarily in Europe, during the second half of the year compared to the first half," Plant said. "Building on the positive momentum established earlier this year while executing our profitable growth strategy is a top priority as we look to finish the year in a strong manner and position the company for long-term success."
