Auto-parts maker TRW Automotive Holdings Corp. (TRW) swung to a first-quarter loss as global vehicle production continued to slump.

TRW also lowered its 2009 sales forecast by $800 million to a range of $10.1 billion to $10.5 billion, with $2.5 billion coming in the second quarter. On average, analysts polled by Thomson Reuters were looking for $2.86 billion in the second quarter.

The maker of brakes and airbags swung to a first-quarter loss of $131 million, or $1.30 a share, from year-earlier earnings of $94 million, or 92 cents. The latest results included 16 cents in restructuring charges and write-downs. Analysts were expecting a loss of $1.71 a share.

Sales slumped 42% to $2.39 billion, amid plunging worldwide auto production and the effects of the stronger dollar. The company's February forecast was $2.4 billion. Gross margins fell to 1.3% from 8.2%.

TRW expects full-year automobile production to total 8.2 million units in North America and 15.9 million units in Europe, down 12% and 3.6%, respectively, from February's forecast.

Parts suppliers have taken major financial hits as U.S. auto makers cut production in the wake of slumping sales both at home and around the world.

On top of that, Chrysler LLC's Chapter 11 bankruptcy filing stands to have a dramatic impact on suppliers. The auto maker is idling all of its U.S. plants for the 60 days the company expects the bankruptcy process to last. That is compounded by General Motors Corp.'s (GM) planning to shut down many of its North American plants this summer to control inventory.

TRW said its drew down additional funds under its $1.4 billion credit revolver early last month amid the ongoing credit-market constraints. In February, accounting firm Ernst & Young LLP raised questions about TRW's ability to continue as a going concern if it were unable to obtain a waiver or amendment should it breach debt covenants.

TRW shares closed Tuesday at $9.40 and were inactive premarket. The stock has more than doubled in value this year, but remains down 55% from September.

-By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com