DETROIT (Reuters) -- TRW Automotive Holdings Corp., crippled by production cuts at automakers, posted a fourth-quarter loss today after a year-earlier profit and said revenue would drop at least 25 percent this year.
The supplier of auto-safety equipment also said it would step up restructuring actions, including job cuts and facility closures, in response to the deep industry downturn after slashing 10,000 positions last year, or 13 percent of its global work force.
From automakers to their parts suppliers and dealership groups, the slump in U.S. vehicle sales to levels unseen in more than 25 years has prompted job cuts, plant closures and decreases in capital spending.
Economic weakness drove U.S. light-vehicle sales down 18 percent to 13.2 million units last year, and analysts and executives have forecast a further decline to as low as 10 million units for 2009.
TRW, which makes airbags and electronic stability controls, reported a fourth-quarter net loss of $946 million compared with a year-earlier profit of $56 million. Excluding asset writedowns and other charges, the loss was $74 million.
The third straight quarter without a profit dragged the company to a loss of $779 million for the year, its first annual deficit since 2003.
Quarterly sales fell 28 percent to $2.8 billion.
TRW expects 2009 sales of $10.9 billion to $11.3 billion, down from $15 billion last year.First-quarter sales could drop about 41 percent to $2.4 billion, the company said.
Auto-parts suppliers have come under intense pressure from tight credit conditions and from a prolonged downturn in consumer demand that has prompted major automakers to slash output.
TRW expects industrywide vehicle production volumes to decline 50 percent in North America and 40 percent in Western Europe in the first quarter.