TRW Again Withdraws 2008 Guidance On Production Declines
With U.S. auto sales in a steep decline, auto-parts suppliers such as TRW are falling victim to the same factors dragging down auto makers. Plunging demand for new vehicles, souring costs and the credit crisis that is restricting access to capital are additional factors. The Big 3 auto makers on Tuesday each posted sales drops of at least 30% for November.
TRW Chief Executive John Plant said Thursday that "the second half of 2008 continues to be an unprecedented period for the automotive industry," adding that production continues to decline.
In late October, TRW projected 2008 earnings of 90 cents to $1.10 a share on revenue of about $15.3 billion. Analysts polled by Thomson Reuters were last looking for 88 cents and $15.24 billion, respectively.
Three weeks before that, TRW pulled its 2008 outlook, noting the slump in North American and European production levels.
Plant on Thursday said the company was continuing to align capacity and reduce its cost structure globally in response to the difficult climate. TRW said it continues to maintain a strong capital structure with strong liquidity and said it expects positive cash flow in its 2008 fourth quarter.
For the third quarter, the company in October said it swung to a loss amid slumping margins caused by North American auto-production reductions.
Shares were up 0.4% to $2.82 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=G8rN%2BJs%2FXaaSgxy4%2FPCYtg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
December 04, 2008 17:09 ET (22:09 GMT)
Publié le 04 Décembre 2008 Copyright © 2008 Dowjones
Partager sur:
