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TRW Takes $87-Million Charge in 1st Quarter

May 15, 1999|Bloomberg News

TRW Inc. revised its first-quarter earnings report to include $87 million in charges associated with its recent, $6.5-billion purchase of LucasVarity. The one-time charges resulted in a loss of $28.4 million, or 24 cents a share, rather than profit of $58.6 million, or 48 cents, including a restructuring charge, reported April 20. TRW's profit from operations for the quarter was $101.1 million, or 83 cents a share, down from $119.7 million, or 95 cents, a year ago, matching the average estimate of analysts surveyed by First Call Corp. "It [the charge] is in line with expectations. The important number we watch is the operating earnings," said Andrew Casey, an analyst at Midwest Research. The acquisition-related charges include $85.3 million for research and development at LucasVarity and $1.7 million in income tax expense. Cleveland-based TRW expects the acquisition to add to earnings beginning in the second quarter. TRW fell 19 cents to close at $47.13 on the NYSE.

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