TRW Rises to Record as Auto Sales Help Profit Beat EstimatesMark Clothier
TRW Automotive Holdings Corp., the world’s biggest vehicle-safety equipment supplier, rose to a record after beating analysts’ estimates for fourth-quarter profit as auto sales climbed.
The shares gained 4.5 percent to $79.81 in New York, the highest close since TRW’s February 2004 initial public offering. The Livonia, Michigan-based company’s stock has advanced 7.3 percent this year after a 39 percent increase in 2013.
TRW, which makes collision-warning systems and adaptive cruise control for carmakers, has benefited as the auto industry rebounds from the U.S. recession that ended in 2009. Last year’s global sales totaled 76.3 million vehicles, a 33 percent jump from a recession-era low of 57.2 million in 2008, according to data compiled by Bloomberg. Fourth-quarter deliveries rose 7.4 percent from a year earlier to 19.5 million, the data show.
The company’s quarterly per-share profit excluding some items was $1.84, according to a statement today. That exceeded the $1.64 average of estimates compiled by Bloomberg. Sales climbed 12 percent to $4.5 billion, compared with analysts’ projection of $4.23 billion.