TRW Automotive Holdings Corp. reported net earnings of $85 million ($0.83 per-share) on sales of $3.4 billion for its second quarter, ended June 30. Net earnings a year ago were $76 million ($0.75 per-share) on sales of $3.2 billion.
Earnings were above previously provided guidance due to the timing of TRW’s closure of its Burgos, Spain, facility closure, a $17 million one-time tax benefit, a $7 million loss on retirement of debt, and improved operating performance, the company said. Expenses related to the closure will be recorded in the third quarter.
For the first half of 2005, TRW recorded net earnings of $135 million ($1.33 per-share) on sales of $6.6 billion. In last year’s first half, net earnings were $78 million ($0.78 per-share) on sales of $6.1 billion.
"For the remainder of the year, we expect our diversification and our portfolio of safety products to continue to bolster our results,” said John C. Plant, president and CEO. "We will also continue to execute our operating plans with precision and take aggressive actions to counter the effects of challenging industry conditions, which is the primary reason why we have elected to decisively increase our restructuring efforts this year."
Restructuring expenses in the first half of 2005 were $21 million, as compared to $13 million in the prior year period.