DOW JONES NEWSWIRES
Auto-parts maker TRW Automotive Holdings Corp. (TRW) swung to a
fourth-quarter loss amid $854 million in write-downs and slumping
demand. The company also projected upcoming sales will be well
below analysts' expectations.
With the industry in a slump, parts suppliers have deepened
cost-cutting efforts in recent months and followed the lead of
Detroit in seeking aid from the U.S. government.
Assuming auto production declines 27% in North America and 20%
in Europe this year, TRW forecasts 2009 sales of $10.9 billion to
$11.3 billion, with about $2.4 billion coming in the first quarter.
On average, analysts polled by Thomson Reuters were looking for
$12.8 billion and $2.97 billion, respectively.
Meanwhile, the supplier of automotive safety systems like brakes
and airbags reported a fourth-quarter net loss of $946 million, or
$9.35 a share, compared with year-earlier net income of $56
million, or 55 cents a share. Excluding the write-downs and
restructuring impacts, the loss would have been 73 cents.
Despite the auto industry's woes, TRW's revenue hit an annual
record in 2008. Fourth-quarter sales slumped 28% to $2.81 billion
amid plunging auto production and impacts from the stronger
dollar.
Analysts expected a loss of $1.41 a share with $2.93 billion in
revenue.
Gross margins tumbled to 3.4% from 8.3% on the sales
weakness.
TRW shares closed Thursday's session at $2.38, and there was no
premarket trading. The stock has fallen nearly 90% in the last six
months.
-By Shirleen Dorman and Kevin Kingsbury, Dow Jones Newswires;
201-938-2310; shirleen.dorman@dowjones.com