TRW Profits Surge on Rising Auto Parts Sales
CLEVELAND (AP) _ TRW Inc. reported Tuesday that profits rose 57 percent in the fourth quarter and 70 percent for the year, bolstered by strong auto parts sales and a growing space-defense business.
The company earned $100.2 million, or $1.49 per share, in the three months ended Dec. 31, compared with profits of $63.6 million, or 96 cents per share, in the same period a year earlier. Sales rose to $2.45 billion from $2 billion.
Chairman Joseph T. Gorman attributed the gains in part to improved productivity and strong demand in North America and Europe for the company’s auto safety and steering systems.
``We expect the North American automotive market to remain strong in 1995, and Europe should continue to gain strength,″ he said.
Auto parts and systems accounted for about 64 percent of total sales for the most recent quarter.
For all of 1994, TRW earned a record $332.7 million, or $5.01 per share, compared with profits of $195.4 million, or $2.97 per share, in 1993. Sales rose to $9.09 billion from $7.95 billion.
Full year automotive product sales were $5.68 billion, or about 62 percent of total sales and a 25.1 percent increase over the 1993.
Sales for TRW’s space and defense business rose 1 percent 1994, the first increase since 1990.
TRW shares fell $1.87 1/2 to close at $63 in trading on the New York Stock Exchange.