TRW Automotive Withdraws Full-Year 2008 Guidance; Expects Third Quarter Net Loss
LIVONIA, Mich., Oct. 7, 2008 - TRW Automotive Holdings Corp. , today announced the withdrawal of its Full-Year 2008 sales and earnings guidance provided on July 31, 2008. In addition, the Company now expects a net loss for its 2008 third quarter on lower than anticipated sales, significantly higher restructuring expenses and increased commodity costs.
In recent months and subsequent to providing the 2008 Full-Year guidance on July 31, 2008, both actual and forecasted levels of vehicle production in Europe and North America have declined. In addition, the mix shift away from pickup trucks and sport utility vehicles to smaller and more fuel efficient cars in North America and from large and mid-sized passenger cars to small cars in Europe is having a more dramatic impact than previously anticipated. The effects of the lower vehicle production levels, mix shift of vehicles produced and the increased commodity costs will negatively impact the Company's second half. Given these challenges, TRW continues to realign its capacity and reduce its fixed cost structure, which will result in a higher level of restructuring and asset impairment expense in the second half of 2008.
"It has truly been an unprecedented period for the automotive industry. The challenges of lower production and commodity inflation have worsened in North America and conditions in Europe have now deteriorated," said John Plant, TRW's President and CEO. "We are taking the actions expected in this environment to adjust our cost base to ensure the competitiveness of the business and to align our organization with changing industry conditions as we move into 2009."
TRW plans to provide updated guidance for Full-Year 2008 when the Company announces its third quarter financial results on October 30, 2008.
Third Quarter 2008 Conference Call
The Company will host its third quarter conference call at 8:00 a.m. (EDT) on Thursday, October 30, 2008 to discuss financial results and other related matters. To access the conference call, U.S. locations should dial (877) 852-7898, and locations outside the U.S. should dial (706) 634-1095.
A replay of the conference call will be available approximately two hours after the conclusion of the call and will be accessible afterward for approximately one week. To access the replay, U.S. locations should dial (800) 642-1687, and locations outside the U.S. should dial (706) 645-9291. The replay code is 66236676.