TRW's revenue slips 1%, net income falls 4% in Q3
Safety technology supplier TRW Automotive Holdings Corp., preparing for its $13.5 billion acquisition by Germany's ZF Friedrichshafen, said Tuesday that its third-quarter revenue dropped 1 percent to $4.16 billion from a year earlier, while net income fell 4 percent.
Demand for active and passive safety technologies and higher vehicle production in North America and China benefited sales, but revenue was “more than offset by the negative impact of exiting businesses,” the company said in a statement.
Net income was $189 million for the quarter, down from $197 million a year earlier.
When adjusting for one-time expenses -- including $13 million in costs related to its corporate transactions and $10 million in restructuring charges -- adjusted net income came in at $205 million, up 15 percent from last year .
“TRW stakeholders continue to benefit from the company’s strong operational performance,” TRW CEO John Plant said in the statement.
Last month partsmaker ZF reached a deal to buy TRW for $105.60 per share in a total deal valued at $13.5 billion.
TRW did not comment on the deal during an earnings conference call Tuesday morning, saying that the companies are still in a quiet period.
The deal requires approval from TRW stockholders but is expected to be finalized during the first half of 2015. TRW will be operated as a business division within ZF, a company statement said last month.
“The TRW Automotive agreement signed with ZF during the third quarter provides significant benefits for our shareholders who will receive full and certain value for their shares, as well as for our employees, customers and communities, all of which will reap the benefits of being part of a larger, more diversified global organization,” Plant said.
Federal-Mogul Holdings Corp. agreed to acquire TRW’s engine valve business last month for $385 million. The deal is also expected to close in the first quarter of 2015.
TRW, headquartered in suburban Detroit, ranks No. 11 on the Automotive News Europe list of top 100 global suppliers, with worldwide parts sales to automakers of $16.1 billion in 2013. Europe accounted for 41 percent of that total.