TRW Automotive Holdings Corp. (TRW): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report
Summary:
TRW Automotive reported a 15.1% increase in its third-quarter 2014 earnings to $1.75 per share, which exceeded the Zacks Consensus Estimate by $0.06. However, revenues dropped 1.3% to $4.16 billion and missed the Zacks Consensus Estimate of $4.2 billion. TRW Automotive continues to return value to shareholders through regular share repurchases. In addition, the company keeps investing in innovative products and is expanding its Electronics business to meet the rising demand. We are concerned about the impending takeover by ZF Friedrichshafen. TRW Automotive also decreased its revenue guidance for fiscal 2014 due to the negative impact of currency headwinds and divested businesses. We are maintaining a Neutral recommendation on the stock.
Overview:
TRW Automotive Holdings Corp. (TRW) is a leading manufacturer of advanced technology products and services for automotive markets. Headquartered in Michigan, the company operates in more than 185 locations, covering every vehicle-producing region worldwide. These operations primarily involve the design, manufacture and sale of active and passive safety-related products.
TRW Automotive is among the world's largest suppliers of automotive systems, modules and components to global automotive manufacturers. The company is a leading supplier to original equipment manufacturers (OEMs), who generated 83% of its revenues in 2013.
TRW Automotive has four business divisions: Chassis Systems, Occupant Safety Systems, Automotive Components and Electronics.
The Chassis Systems division (64.5% of segment sales in the first nine months of 2014) manufactures automotive and commercial steering systems, foundation brake components and systems, seat belt systems, engine valves and valve train systems.
The Occupant Safety Systems division (19.4%) makes air bags, seat belts, crash sensors as well as other safety and security electronics. The company is also among the global leaders in brake control systems, airbag systems, safety electronics, body control systems, steering wheels, engineered fasteners in foundation brakes and seat belts.
The Automotive Components division (10.9%) offers valves, plastic components and body controls. Globally, the company is the second largest supplier of engine valves.
The Electronics division (5.2%) focuses on the design, manufacture and sales of electronic components and systems in areas of safety, radio frequency, chassis, driver assistance and powertrain.
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