TRW 3Q earnings fall on higher raw material costs

LIVONIA (AP) -- Auto parts maker TRW Automotive Holdings Corp. said Wednesday that its profit tumbled 21 percent in the third quarter as costs for raw materials, legal fees and development expenses rose. The company, which makes airbags, seatbelts, steering and braking systems and other automotive parts, reported net income of $158 million, or $1.22 per share, for the three months ended Sept. 30, down from $199 million, or $1.54 per share, a year earlier. TRW said higher car sales during the period helped push revenue up 14 percent to $3.92 billion from $3.43 billion a year earlier. But higher costs, including a $19 million loss on retirement of debt, helped push profit lower. Excluding the debt retirement charges, TRW said it earnings came to $1.37 per share. Analysts expected adjusted earnings of $1.40 per share on sales of $3.89 billion. Its shares fell 83 cents, or 2.1 percent, to $38.01 in premarket trading. The company said it is working to sell businesses in Asia that do not involve automotive safety systems and that it expects to complete the sale in the fourth quarter. The company said it expects U.S. car sales to total 12.9 million in 2011 and European car sales to reach 19.9 million. Based on those production volumes, the company expects full year revenue of $16.2 billion. Published: Thu, Nov 3, 2011