As carmakers raised their production to cope with demand, TRW Automotive Holdings Corp.’s quarterly profit more than tripled. TRW raised its full-year sales forecast and said that the recovery observed in the overall auto industry will be able to support a strong year for the company.
In the third quarter, net income increased to $199 million, or $1.54 per share, from $56 million, or 50 cents per share, a year ago.
Excluding one-time items, TRW posted earnings of $1.47 per share. Thomson Reuters I/B/E/S said that on this basis, analysts on average had anticipated 78 cents. Revenue had climbed by 10% to $3.4 billion, higher than the $3.15 billion that analysts predicted.
TRW said that its results were supported by the boost in vehicle production and the past years’ restructuring that had cut costs. He also said that results were also affected by negative currency movements and a modest increase in raw materials prices.
JPMorgan analyst Himanshu Patel said in a note that the quarterly performance was solid even after accounting for a tax rate that was lower than expected and some potentially nonrecurring benefits.
TRW’s sales forecast for the entire year was raised to $14.1 billion from what it disclosed in its second-quarter earnings release of a range of $13.2 billion to $13.6 billion. The 2010 forecast has taken into account its fourth quarter sales expectations of about $3.4 billion. TRW manufactures auto safety equipment such as airbags and electronic stability controls systems. [via autonews - sub. required]