TRW Automotive Results Tops Street, Outlook Strong; Stock Up - Update

(RTTNews) - TRW Automotive Holdings Corp. (TRW) Friday reported a decline in fourth-quarter profit due mainly to lower tax benefit even as sales climbed 12 percent. Nonetheless, results for the quarter came in well ahead of Wall Street estimates.

The company provided some robust sales outlook for the first quarter and fiscal 2014 on prospects for China and North America, The announcement lifted TRW shares 4 percent in morning trade on the New York Stock Exchange.

TRW supplies automotive systems, modules and components to automotive original equipment manufacturers.

The Livonia, Michigan-based company posted fourth-quarter net earnings of $363 million or $3.00 per share, compared with $419 million or $3.26 per share last year.

Results for the quarter include, among other items, a tax benefit of $107 million versus a benefit of $286 million in the prior year.

Excluding items, adjusted earnings for the quarter were $222 million or $1.84 per share, compared with $199 million or $1.55 per share a year ago. On average, 12 analysts polled by Thomson Reuters expected earnings of $1.64 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the fourth quarter climbed 12 percent to $4.5 billion from $4.03 billion in the prior year. Eleven analysts had a consensus sales estimate of $4.22 billion for the quarter.

Growth was on higher demand for TRW's innovative technologies, increased vehicle production volumes and the positive impact of currency movements.

For the first quarter, TRW projects sales of about $4.3 billion, while analysts expect $4.28 billion.

For fiscal 2014, the company expects sales of $17.3 billion to $17.6 billion, compared with analysts' projections of $17.36 billion.

TRW said its expectations for industry production volumes in 2014 are nearly 16.8 million units in North America and 19.5 million units in Europe, up 4 percent and 1 percent, respectively, compared with a year ago.

The company's stock is trading at $79.58, up $3.24 or 4.24%, on a volume of 1 million shares.