LIVONIA, Mich. – TRW Automotive Holdings Corp. has reported third quarter 2014 financial results with sales of $4.2 billion, a decrease of 1 percent compared to the prior year period (up 3 percent excluding the effect of businesses exited). The company reported GAAP third quarter net earnings of $189 million or $1.61 per diluted share, which compares to net earnings of $197 million or $1.60 per diluted share in the prior year period.
Excluding special items from the company’s current and prior year quarterly results, the company reported third quarter 2014 net earnings of $205 million, or $1.75 per diluted share, an increase of 15 percent compared to last year’s third quarter earnings of $1.52 per diluted share.
In addition to the solid financial results achieved in the third quarter of this year, the company, as previously announced, entered into a definitive agreement with ZF Friedrichshafen AG under which ZF will acquire all outstanding shares of TRW for $105.60 per share in an all-cash transaction valued at approximately $13.5 billion on an enterprise value basis. The transaction is expected to close in the first half of 2015.
During the third quarter, the company also entered into an agreement to sell its engine valve business to Federal-Mogul Holdings Corp. for $385 million in cash. The planned divestiture, with annual sales of approximately $610 million, is expected to close in the first quarter of 2015.
“TRW stakeholders continue to benefit from the company’s strong operational performance,” said John Plant, chairman and CEO. “The agreement signed with ZF during the third 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.”
Year-to-Date 2014
For the nine-month period ended Sept. 26, 2014, the company reported sales of $13.2 billion, an increase of $252 million compared to prior year sales.
The company reported year-to-date 2014 GAAP net earnings of $653 million, or $5.56 per diluted share, which compares to GAAP net earnings of $607 million, or $4.88 per diluted share in the prior year period. Excluding special items, the company reported net earnings of $690 million in the first nine months of 2014, or $5.87 per diluted share, an increase of 16 percent compared to last year’s year-to-date earnings of $5.05 per diluted share.
TRW expects full year 2014 sales to be approximately $17.4 billion.
