TRW Swings To 4Q Loss Amid Write-Downs, Sees Bleak 2009

   DOW JONES NEWSWIRES 
 

Auto-parts maker TRW Automotive Holdings Corp. (TRW) swung to a fourth-quarter loss amid $854 million in write-downs and slumping demand. The company also projected upcoming sales will be well below analysts' expectations.

With the industry in a slump, parts suppliers have deepened cost-cutting efforts in recent months and followed the lead of Detroit in seeking aid from the U.S. government.

Assuming auto production declines 27% in North America and 20% in Europe this year, TRW forecasts 2009 sales of $10.9 billion to $11.3 billion, with about $2.4 billion coming in the first quarter. On average, analysts polled by Thomson Reuters were looking for $12.8 billion and $2.97 billion, respectively.

Meanwhile, the supplier of automotive safety systems like brakes and airbags reported a fourth-quarter net loss of $946 million, or $9.35 a share, compared with year-earlier net income of $56 million, or 55 cents a share. Excluding the write-downs and restructuring impacts, the loss would have been 73 cents.

Despite the auto industry's woes, TRW's revenue hit an annual record in 2008. Fourth-quarter sales slumped 28% to $2.81 billion amid plunging auto production and impacts from the stronger dollar.

Analysts expected a loss of $1.41 a share with $2.93 billion in revenue.

Gross margins tumbled to 3.4% from 8.3% on the sales weakness.

TRW shares closed Thursday's session at $2.38, and there was no premarket trading. The stock has fallen nearly 90% in the last six months.

-By Shirleen Dorman and Kevin Kingsbury, Dow Jones Newswires; 201-938-2310; [e-mail]