TRW Cuts Satellite Investment
Nov. 06, 2001
CLEVELAND (AP) _ TRW Inc. abandoned its investment in telecom venture Astrolink International on Tuesday and revised its third quarter earnings to an $80 million net loss, or 65 cents per share.
In October, TRW announced earnings of $75 million, or 59 cents per share, on third-quarter sales of $3.9 billion. The company earned $91 million, or 73 cents per share, on $4.1 billion in sales for the July-September period last year.
``We are taking a charge to earnings to reflect an impaired asset, which is an investment in Astrolink,'' said Jay McCaffery, spokesman for the automotive, aerospace and defense products maker.
Astrolink is a satellite telecommunications joint venture between TRW, Lockheed Martin, Liberty Media Group and Telespazio. Lockheed Martin announced last week that it was ceasing investment in the venture.
TRW stock closed at $37.45 per share Tuesday, up 77 cents on the New York Stock Exchange.
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