TRW Automotive Holdings Corp. reported $199 million or $1.68 per diluted share in net earnings in the first quarter of 2014 (GAAP), compared to $162 million or $1.29 per diluted share in the same period in 2013. Excluding special items, TRW logged a 20-percent rise in earnings to $215 million, or $1.81 per diluted share, from $1.51 per diluted share in the prior year period.
In terms of revenues, the company posted a 5-percent boost to $4.4 billion. John C. Plant, chairman and chief executive, remarked that the company was off to a strong start this year, thanks to increasing global demand for TRW's safety technologies, particularly in China where sales surged 16 percent year-on-year. He also cited hiked vehicle production in each of TRW’s major regions.
The higher level of sales was also driven by the positive impact of currency movements between the two quarterly periods. However, currency-related gains were partially offset by the negative effects of exiting certain businesses within its North American brake component and assembly operations.
TRW posted $308 million in operating income in the first quarter of 2014, hurt by restructuring and asset impairment charges amounting to $20 million. This compared to $253 million first quarter 2013 operating income, hurt by restructuring and asset impairment charges totaling $37 million.
Excluding restructuring and asset impairment charges, operating income for the first quarter of 2014 was $328 million, for a margin of 7.4 percent.
TRW posted $31 million in net interest expense and $78 million in tax expense for the period. Both the 2014 and 2013 quarterly periods included tax benefits tied to restructuring actions.