TRW Automotive Holdings reported stronger than expected earnings for the first quarter.
TRW’s revenue foe the first quarter was better than analysts expected, as European production was not as weak as predicted and output in China was strong. Net income fell 21% to $162 million from $206 million during the same period last year. The main cause for this decline was a higher percentage of lower-profit products sales, as well as planned increases in costs to support future growth.
Without taking into consideration the one-time items, TRW earned $1.51 a share or with 7 cents more than analysts’ estimations and revenue reached $4.21 billion, up from $4.13 billion that analysts predicted.
“The ability to mitigate the challenging automotive industry conditions in Europe, where vehicle demand and production continues to decline, demonstrates the benefits of TRW’s global footprint and highly diversified product and customer mix,” said John C. Plant, chairman and CEO. “We expect our strong market position will continue to strengthen in the future as the Company executes its significant growth strategy.”
TRW, which manufactures airbags, seat belts and braking systems, predicts sales this year will range between $16.6 billion to $16.9 billion, an increase from the February forecast of between $16.4 billion to $16.7 billion. Second quarter sales are expected to reach around $4.3 billion.