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TRW 1Q profits decline
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April 20, 1999: 1:55 p.m. ET
Automotive-parts maker says recent acquisition, restructuring to blame
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CLEVELAND (CNNfn) - TRW Inc., hindered by costs associated with its recent purchase of LucasVariety PLC and restructuring charges at its automotive-parts production plants, Tuesday reported a 14-percent drop in its first-quarter earnings per share.
Net income for the quarter ended March 31 was $101.1-million, or 83 cents a share compared to $119.7-million, or 95 cents in the year-earlier period, matching the 83-cent-a-diluted share estimate provided by First Call Corp.
First-quarter 1999 revenue of $3.1-billion was almost unchanged from the year-earlier period, the company said.
CEO Joseph Gorman said he was disappointed with the results, which were supposed to have benefited from improved efficiencies within the Cleveland-based company's automotive units.
"Clearly, we are not satisfied with our overall operating performance, and it is being clearly addressed with the utmost urgency," Gorman said.
Plans to boost sales in subsequent quarters include a program with Motorola Inc. (MOT) to develop enhanced safety systems within cars and trucks and a contract with NEC Corp. (NIPNY) to produce software that will enable Japan to better prepare itself for natural disasters, humanitarian assistance and national defense.
Including unusual items, TRW said its net earnings were $58.6-million, or 48 cents a share compared with $129.4-million, or $1.03 a share in the first quarter of 1998.
TRW shares rose 1/8 to 45-1/4 in mid-afternoon trading on the New York Stock Exchange. The company's stock touched a 52-week high of 59-7/8 in early January. 
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TRW Inc.
LucasVariety
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