TRW Automotive Holdings Corp. posted a net profit of $56 million in the fourth quarter of 2007 vs. a $33 million profit a year earlier, thanks to cost cutting, overseas growth and strong demand for the company’s safety systems.
Revenue jumped 19% to $3.9 billion for the quarter, with favourable exchange rates contributing about half that gain.
For the full year, TRW netted $90 million, down from $176 million in 2006, on record revenue of $14.7 billion, up 12%..
TRW, which generates 70% of its sales outside North America, predicts that strong overseas sales will boost 2008 revenue to $15.6 billion-$16 billion; it anticipates earnings of $2.15-$2.45 per share, compared to 88 cents last year.
The company forecasts North American auto production of 14.5 million vehicles, the lowest volume in 15 years, as domestic OEMs cut output by 800,000 units. TRW cautions that the resulting downturn, combined with rising material costs, will pressure its smaller suppliers.