TRW 3Q net income up 3 pct on higher NA demand

LIVONIA (AP) -- Auto parts maker TRW Automotive Holdings Corp. said Tuesday that its third-quarter net income rose 3 percent, helped by higher vehicle production levels in North America. The Livonia-based company earned $163 million, or $1.28 per share, up from $158 million, or $1.22 per share, in the same quarter last year. Excluding one-time items, the company said it posted an adjusted profit of $1.24 per share. Revenue rose about 1 percent to $3.97 billion from $3.92 billion. Excluding the effects of currency exchange rates and divestitures, TRW said its sales rose 9 percent. TRW, like other companies that do significant business outside the U.S., can be hurt by a rising dollar because revenue earned in foreign currencies shrinks when it's translated back into a stronger U.S. dollar. The auto supplier said it got a boost from higher vehicle production in North America, but it was partially offset by declines in European vehicle production. The company said its results also were hurt by a higher tax rate. Income tax expense rose to $68 million for $37 million. Based on its expectations for global vehicle production, TRW said it expects its 2012 revenue to total between $16.2 billion and $16.3 billion. The company added that it will need to cut costs because of the drop in European vehicle production. As a result, it expects its fourth-quarter results to include restructuring charges of between $65 million and $75 million. Published: Thu, Nov 1, 2012