TRW Automotive Posts Upbeat Q1 Earnings, But Lowers Revenue Forecast

reported better-than-expected earnings for the first quarter, but the company lowered its revenue forecast for the full year. The Livonia, Michigan-based company posted quarterly net income of $366 million, or $3.13 per share, compared to $199 million, or $1.68 per share, in the year-ago period. Excluding non-recurring items, the company earned $2.01 per share. Its revenue slipped 6.8 percent to $4.14 billion. However, analysts were expecting a profit of $1.87 per share on revenue of $4.18 billion. The average estimate among 5 Estimize users was for earnings of $2.17 per share and revenue of $4.63 billion. Its operating income climbed to $534 million, versus $308 million in the year-ago period. Net interest expense slipped to $23 million from $31 million. As of April 3, 2015, TRW Automotive had $1,594 million of debt and $1,017 million of cash and cash equivalents. "TRW achieved a strong start to 2015, which will provide a solid foundation as we enter the merger with ZF," said John C. Plant, Chairman and Chief Executive Officer. "The agreement signed with ZF, which we expect to close during the second 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." For the full year, TRW now projects revenue of $16.2 billion to $16.5 billion, versus earlier forecast of $16.6 billion to 16.9 billion. TRW shares gained 0.17 percent to close at $105.25 yesterday.