TRW 2nd-quarter profit rises, boosts guidance
LIVONIA, Mich. – TRW Automotive Holdings Corp., one of the world’s largest auto suppliers, said Wednesday second-quarter profit climbed 7 percent on slightly higher sales. The company lifted its full-year earnings guidance.Earnings rose to $91 million, or 88 cents per share, in the three months ended June 30 from $85 million, or 83 cents per share, during the same period last year. Last year’s results included a one-time tax benefit and loss on retirement of debt. Excluding these items, net income for the 2005 quarter was $75 million, or 73 cents per share.Quarterly revenue increased 3 percent to $3.46 billion from $3.37 billion last year on the acquisition of Dalphi Metal Espana SA, increased product demand and the impact of foreign currency translation, which was partially offset by price reductions and lower vehicle production by its customers in North America and Europe.Analysts polled by Thomson Financial, on average, were expecting earnings of 67 cents per share on $3.43 billion in sales.For the first half of the year, TRW earned $138 million, or $1.34 a share, up from $135 million, or $1.33 a share, a year ago. Six-month revenue rose to $6.86 billion from $6.59 billion a year ago.The company raised its full-year earnings outlook to a range of $1.50 to $1.80 per share, including a $57 million charge related to a bond tender transaction for its Lucas Industries Ltd. subsidiary in the first half of the year. Excluding the charge, earnings are expected to be between $2.05 and $2.35 per share. Previous guidance was for earnings of $1.30 to $1.60 per share with the bond charge, and $1.85 to $2.15 per share without it.Full-year revenue is seen in a range of $13 billion to $13.3 billion, with third-quarter sales of about $3 billion. In its last quarterly report, TRW saw full-year revenue at $12.8 billion to $13.2 billion.Analysts are looking for full-year earnings of $2.14 per share on sales of $13.12 billion. Third-quarter revenue is seen at $3.02 billion.TRW shares rose 64 cents, or 2.5 percent, to $26.25 in morning trading on the New York Stock Exchange. Its shares have traded in a 52-week range of $22 to $29.90.
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