Well, this is not good!
biz.yahoo.com
Thursday September 7, 5:59 pm Eastern Time
TRW to miss third-quarter earnings expectations
(UPDATE: adds details, stock price)
NEW YORK, Sept 7 (Reuters) - TRW Inc. (NYSE:TRW - news) on Thursday said it
expects to miss Wall Street estimates for third-quarter earnings due to weakening foreign
currency, production cutbacks at Ford, and other problems that could carry over into the
fourth quarter.
The Cleveland-based manufacturer of automotive, space and defence products from airbags to space telescopes said
third-quarter earnings would be 19 to 24 cents below the analysts' consensus estimate of $1.05 per share.
TRW blamed weakening foreign currency, production cutbacks at Ford Motor Co. (NYSE:F - news), weaker than expected
revenues at its space and electronics business, and a higher level of interest expense. It also cited increased investments
partnerships to develop new commercial uses for technologies it has developed.
A spokesman declined to elaborate on the reasons for some of the unexpected shortfalls, but said the currency weakness and
Ford cutbacks are affecting all auto suppliers.
The announcement came after the close of regular trading. The shares were trading at $41-3/4 after hours, according to
Instinet, down from their close on the New York Stock Exchange of $45-1/4, where that had lost 1/2 already in regular-hours
trading.
TRW said it believes it will achieve its previously announced cash flow goal of reducing net debt by about $300 million in the
second half of 2000.
The company also said it would take a primarily noncash, after-tax charge of $36 million to consolidate its air bag operations in
order to optimize operating efficiencies, and $14 million in third-quarter, after-tax charges for a recall involving truck parts
treated by a TRW business and inventory adjustments at two automotive manufacturing facilities.
TRW plans to report third-quarter earnings on Oct. 18. |
