TRW says Q1 revenue up 7%, profits rise
TRW Automotive Holdings Corp., which is being acquired by German supplier ZF Friedrichshafen, said that first quarter revenue grew 7 percent from last year, excluding the effects of currency and divested business.
The automotive safety systems supplier posted a net profit of $366 million, or $3.13 per share, compared with net income of $199 million, or $1.68 a share, during the same quarter last year. The recent quarter results included a $186 million gain from the sale of TRW’s engine valve business to Federal-Mogul Holdings Corp.
Excluding one-time items, TRW said first-quarter 2015 net earnings increased 11 percent to $235 million, or $2.01 per diluted share.
First quarter revenue of $4.1 billion was down $300 million from the previous year, however, excluding effects of currency and divested business, sales increased $270 million, TRW said.
TRW entered an agreement with ZF in September to be acquired by the German company in a transaction valued at $12.4 billion, or $105.60 per share. TRW shares increased by more than 2 percent year-to-date to $105.25.
The transaction is expected to close by the end of this month, TRW said in an updated statement today. The U.S. Federal Trade Commission has cleared the acquisition, TRW said.
"Subject to the receipt of antitrust approval in Mexico, which the parties expect to obtain shortly, and the satisfaction of other customary closing conditions, ZF's proposed acquisition is expected to close later this month," the statement said.
In addition to the acquisition by ZF, TRW signed an agreement in April to divest its linkage and suspension business for $400 million in cash to THK Co. That is expected to close by the end of the third quarter.
The supplier said it expects full-year revenue to reach between $16.2 billion and $16.5 billion.
TRW ended the quarter with $1.6 billion in debt and $1 billion in cash and equivalents.