UPDATED: 2/14/14 4:32 pm ET - adds stock hits record high
DETROIT -- Automotive safety components supplier TRW Automotive Inc. today said its fourth-quarter net income fell 13 percent to $363 million from the year-earlier period because the company received a smaller tax benefit than last year.
Revenue for the quarter rose 12 percent to $4.5 billion from a year ago. TRW attributed the increase to stronger demand for its products, higher vehicle production and currency exchange benefits.
The company said a lower tax benefit of $103 million was recognized in the fourth quarter this year, down from a tax benefit if $286 million in the previous year.
The net income results exceeded analysts' expectations by 20 cents on a per-share basis and, as a result, TRW shares surged 4.5 percent to close the day at $79.81. Earlier in the day, the shares hit an all-time record $81.37, Bloomberg reported. The stock had advanced 2.6 percent this year through Thursday and increased 39 percent in 2013, Bloomberg reported.
For the year, TRW's net income slipped 4 percent to $970 million from 2012 because of debt retirement expenses. Revenue for the year increased 6 percent to $17.43 billion from a year earlier. The company cited higher demand for its products and more vehicle output in North America and China.
TRW said it expected vehicle output to rise 4 percent in North America and 1 percent in Europe this year. It also predicted growth in China and other global markets this year.
The earnings report comes after TRW walked away from a $700 million brake contract with General Motors in September. The companies disagreed over pricing in the contract.
TRW, of suburban Detroit, ranks No. 13 on the Automotive News list of the top 100 global suppliers with worldwide parts sales to automakers of $14.14 billion in 2012.
Bloomberg contributed to this report.
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