(Source: Associated Press/AP Online)
LIVONIA, Mich. - TRW Automotive Holdings Corp. posted a third-quarter profit of $56 million on Wednesday, as cost cuts helped the auto parts supplier recover from a loss a year earlier. It also raised its full-year sales forecast.
Its shares rose 7.7 percent to $18.30 in premarket trading.
The maker of automotive safety systems attributed the improved third-quarter results to cost cutting efforts, which helped offset falling sales. TRW and other auto parts suppliers have been forced to slash costs as automakers have cut production over the last year, though the company said that trend has begun to reverse.
"The benefits achieved from our restructuring and cost containment actions combined with increasing vehicle production schedules had a significant positive impact on our third quarter results," John C. Plant, President and CEO, said in a statement.
The company said its profit for the quarter ended Oct. 2 came to 50 cents per share, well ahead of Wall Street's expectations. The company lost $54 million, or 53 cents per share, in the same period last year.
Excluding restructuring and other charges, the company earned 68 cents per share.
Revenue fell 13.5 percent to $3.12 billion from $3.59 billion a year ago.
Analysts surveyed by Thomson Reuters expected the company to report a smaller profit of 16 cents per share on $2.87 billion in revenue, on average. Such estimates typically exclude charges and other one-time items.
The company said it expects 2009 sales of $11.4 billion. Earlier in the year, it forecast between $10.5 billion and $10.9 billion.
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