TRW posts smaller profit; 'cautious' on Europe
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DETROIT (Reuters) -- TRW Automotive Holdings Corp. made a smaller profit in the second quarter due to higher taxes and raw material costs as well as expenses tied to the company's growth plans.
The company remains "cautious in the near-term" due to the deepening economic crisis in Europe, CEO John Plant said in a statement. TRW generates about half of its global sales in Europe.
The automotive parts supplier posted a net income of $220 million, or $1.71 per share, compared with $293 million, or $2.21 per share a year earlier.
Excluding one-time items, TRW reported a profit of $1.72 per share. Revenue rose slightly to $4.24 billion from $4.23 billion.
Michigan-based TRW, which makes brake systems, seat belts and airbags, projected annual sales of up to $16.4 billion and third-quarter revenue of $3.9 billion.
On Monday, a German subsidiary of TRW agreed to plead guilty in a U.S. Department of Justice probe into price fixing of auto parts, such as airbags, steering wheels and seat belts. TRW, the seventh company to settle in the DOJ probe, agreed to pay a $5.1 million fine.
TRW ranks No. 12 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $14.7 billion in 2011. Europe accounted for 49 percent of that total.
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