TRW Automotive Holdings Corp. (TRW, Financial) filed Quarterly Report for the period ended 2010-10-01.
Trw Automotive Holdings Corp. has a market cap of $5.58 billion; its shares were traded at around $46.99 with a P/E ratio of 8.6 and P/S ratio of 0.5. TRW is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Gross profit increased by $86 million for the three months ended October 1, 2010 as compared to the three months ended October 2, 2009. The increase was driven primarily by increased volume (net of adverse mix) of $103 million and the reversal of accruals related to litigation matters of $12 million. Partially offsetting these favorable items were price reductions and higher inflation (net of cost reductions) and the non-recurrence of favorable customer settlements that occurred in the prior period, which totaled $13 million. Additionally, increased warranty expense and unfavorable foreign currency exchange, totaling $8 million, and higher pension and postretirement benefit expense of $7 million negatively impacted gross profit. Gross profit as a percentage of sales for the three months ended October 1, 2010 was 11.3% compared to 9.7% for the three months ended October 2, 2009.
Administrative and selling expenses decreased by $11 million for the three months ended October 1, 2010 as compared to the three months ended October 2, 2009. This improvement was driven primarily by favorable adjustments resulting in lower insurance and environmental expenses of $8 million and favorable foreign currency exchange of $3 million. Administrative and selling expenses as a percentage of sales were 3.5% for the three months ended October 1, 2010, as compared to 4.2% for the three months ended October 2, 2009.
Restructuring charges and fixed asset impairments net to zero for the three months ended October 1, 2010 as compared to $24 million for the three months ended October 2, 2009. This decrease was driven by lower severance-related postemployment benefits of $22 million and reduced fixed asset impairments of $2 million.
(Gain) loss on retirement of debt net was a loss of $1 million for the three months ended October 1, 2010 and the three months ended October 2, 2009. During the third quarter of 2010, we recognized a loss on retirement of debt of $1 million, including the write-off of deferred financing fees, discounts and premiums, related to the repurchase
Income tax expense for the three months ended October 1, 2010 was $28 million on pre-tax earnings of $236 million as compared to an income tax expense of $28 million on pre-tax earnings of $90 million for the three months ended October 2, 2009. The tax expense for the three months ended October 1, 2010 is net of tax benefits of $11 million relating to favorable resolutions of various tax matters in foreign jurisdictions. The income tax rate varies from the United States statutory income tax rate due primarily to results in the United States and certain foreign jurisdictions that are currently in a valuation allowance position for which pre-tax earnings or losses do not result in the recognition of a corresponding income tax expense or benefit, as well as favorable foreign tax rates, holidays, and credits.
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Trw Automotive Holdings Corp. has a market cap of $5.58 billion; its shares were traded at around $46.99 with a P/E ratio of 8.6 and P/S ratio of 0.5. TRW is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Sales increased by $318 million for the three months ended October 1, 2010 as compared to the three months ended October 2, 2009. The increase in sales was driven primarily by favorable volume (net of price reductions provided to customers) of $431 million, which is mainly attributable to increased vehicle production volumes in the North American, Asia-Pacific and South American geographic regions. Foreign currency exchange had a net unfavorable impact on sales of $113 million.Gross profit increased by $86 million for the three months ended October 1, 2010 as compared to the three months ended October 2, 2009. The increase was driven primarily by increased volume (net of adverse mix) of $103 million and the reversal of accruals related to litigation matters of $12 million. Partially offsetting these favorable items were price reductions and higher inflation (net of cost reductions) and the non-recurrence of favorable customer settlements that occurred in the prior period, which totaled $13 million. Additionally, increased warranty expense and unfavorable foreign currency exchange, totaling $8 million, and higher pension and postretirement benefit expense of $7 million negatively impacted gross profit. Gross profit as a percentage of sales for the three months ended October 1, 2010 was 11.3% compared to 9.7% for the three months ended October 2, 2009.
Administrative and selling expenses decreased by $11 million for the three months ended October 1, 2010 as compared to the three months ended October 2, 2009. This improvement was driven primarily by favorable adjustments resulting in lower insurance and environmental expenses of $8 million and favorable foreign currency exchange of $3 million. Administrative and selling expenses as a percentage of sales were 3.5% for the three months ended October 1, 2010, as compared to 4.2% for the three months ended October 2, 2009.
Restructuring charges and fixed asset impairments net to zero for the three months ended October 1, 2010 as compared to $24 million for the three months ended October 2, 2009. This decrease was driven by lower severance-related postemployment benefits of $22 million and reduced fixed asset impairments of $2 million.
(Gain) loss on retirement of debt net was a loss of $1 million for the three months ended October 1, 2010 and the three months ended October 2, 2009. During the third quarter of 2010, we recognized a loss on retirement of debt of $1 million, including the write-off of deferred financing fees, discounts and premiums, related to the repurchase
Income tax expense for the three months ended October 1, 2010 was $28 million on pre-tax earnings of $236 million as compared to an income tax expense of $28 million on pre-tax earnings of $90 million for the three months ended October 2, 2009. The tax expense for the three months ended October 1, 2010 is net of tax benefits of $11 million relating to favorable resolutions of various tax matters in foreign jurisdictions. The income tax rate varies from the United States statutory income tax rate due primarily to results in the United States and certain foreign jurisdictions that are currently in a valuation allowance position for which pre-tax earnings or losses do not result in the recognition of a corresponding income tax expense or benefit, as well as favorable foreign tax rates, holidays, and credits.
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