CHICAGO -- TRW Automotive Holdings Corp., which makes airbags and other safety equipment, on Tuesday said quarterly earnings fell 23 percent because of higher restructuring and raw materials costs.
TRW, which reported earnings slightly better than company forecasts, said a tough environment will test its ability to post flat to moderate earnings growth in 2006.
Net earnings fell to $10 million, or 10 cents per share, in its third quarter, from $13 million, or 13 cents per share, a year earlier, Livonia, Mich.-based TRW said.
Results included restructuring and asset impairment costs of $35 million. Excluding one-time items, analysts had expected TRW to earn 2 cents a share, according to Reuters Estimates.
Revenue rose 6.5 percent to $2.92 billion at TRW, which also makes anti-lock brakes and tire-pressure monitoring sensors. Analysts had expected revenue of $2.83 billion.
TRW said it expects fourth-quarter earnings per share of 23 cents to 38 cents, with revenue of $3.1 billion, including pretax restructuring and asset impairment expenses totaling about $34 million. Analysts have expected 44 cents per share with revenue of $3.27 billion, excluding items.
TRW expects full-2005 earnings per share of $1.65 to $1.80, with revenue of $12.6 billion. Excluding a one-time tax benefit and a loss on retirement of debt, TRW expects 2005 earnings per share of $1.55 to $1.70, while analysts have expected $1.70 on revenue of $12.65 billion.
TRW is ninth on the Automotive News ranking of top suppliers to North American manufacturers with $4.2 billion in original equipment sales in 2004.