Auto, Defense Components Maker Says Earnings Up 14 Percent
CLEVELAND (AP) _ TRW Inc. on Monday reported third-quarter earnings increased more than 14 percent, in part because of new contracts in its defense and aerospace unit.
Earnings for the quarter totaled $93.6 million, or $1.39 a share, compared with $81.8 million, or $1.26 a share, in the same period a year ago. Sales rose 11 percent to $2.40 billion from $2.16 billion.
TRW said both sales and profit set records for the quarter.
Although profit rose, the results were below analysts’ expectations, and TRW stock was down $1.25 at $69.75 a share in afternoon trading on the New York Stock Exchange.
Cleveland-based TRW makes auto, defense and aerospace components and has a credit reporting company.
The automotive segment is performing well despite a slowdown in vehicle production and intense price pressure on manufacturers, said Joseph Gorman, TRW’s chairman. The defense and aerospace segment is winning new contracts both in and out of traditional markets.
Sales dipped slightly in the information systems and services segment.
``Even with uncertainty in the markets we serve, TRW is on track to post another record year in sales and earnings per share,″ Gorman said.
For the first nine months of this year, TRW earned a record $331.4 million, or $4.97 a share, on sales of $7.71 billion. For the same period last year, the company reported net income of $232.5 million, or $3.56 a share, on sales of $6.64 billion.