LIVONIA — The Livonia auto safety systems supplier TRW Automotive Holdings Corp. (NYSE: TRW) Tuesday reported net income of $265 million or $2.27 a share in the second quarter ended June 27, up from $248 million or $1.99 a share in the same quarter a year earlier.
Revenue was $4.59 billion, up 2 percent from $4.51 billion a year earlier.
In a written statement, TRW chairman and CEO John C. Plant said: “TRW’s second quarter results reflect the company’s focus and ability to capitalize on increasing global demand for its active and passive safety technologies. ”
Company officials said the higher level of sales was driven by increasing demand for TRW’s active and passive safety technologies, higher vehicle production volumes in the company’s major markets, and the positive impact of currency movements between the two periods, partially offset by the negative impact related to exiting certain businesses within the company’s North American brake component and assembly operations.
For the six months ended June 27, net income was $464 million or $4.14 a share, up from $410 million or $3.44 a share a year earlier. Revenue was $9.01 billion in the half, up from $8.73 billion in the first half of 2013.
During the first half of 2014, TRW used $400 million of cash to initially repurchase 3.9 million shares of its common stock through an accelerated share repurchase agreement. The agreement, as previously disclosed, is expected to be completed by the end of the third quarter 2014.
As of June 27, the company had $1,892 million of debt and $931 million of cash and cash equivalents, resulting in net debt (defined as debt less cash and cash equivalents) of $961 million. The $222 million decrease in total gross debt compared to year end 2013 primarily reflects $469 million of face value bond debt that matured during the first quarter, partially offset by an increase in borrowings under short-term uncommitted lines of credit.
TRW said it expects full year industry production volumes to total 17.0 million units in North America and 19.9 million units in Europe. Within the forecast for Europe, normal seasonality is expected to place modest downward pressure on vehicle production in the near-term despite continuing signs the industry in the region appears to be headed in the right direction. Outside North America and Europe, the Company continues to expect expansion in vehicle production volumes in China whereas Brazil remains challenged by negative
economic conditions. Based on these production levels, the company’s first half performance and expectations for foreign currency exchange rates, full year 2014 sales are expected to range between $17.5 billion and $17.7 billion, with third quarter sales expected to be approximately $4.2 billion.
To listen to a replay of the conference call discussing the results, call (855) 859-2056 in the United States and (404) 537-3406 elsewhere. The replay code is 66704166. A replay of the conference call will also be available at www.trw.com.