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TRW Profit Will Be Lower Than Forecast

September 08, 2000|Bloomberg News

TRW Inc. said its third-quarter profit will be below forecasts because of currency fluctuations, production cutbacks by Ford Motor Co. and slower electronics sales and said fourth-quarter profit could also be hurt. TRW shares tumbled $5.75, or 13%, to $39.50 in after-hours trading after closing off 61 cents at $45.25 on the New York Stock Exchange. After the markets closed, TRW said it expects third-quarter profit to be cut by 19 cents to 24 cents a share. Analysts had forecast TRW earnings of $1.05 a share, according to First Call/Thomson Financial. The Cleveland-based company also will take third-quarter charges of $36 million to consolidate its air-bag operations, and $14 million for a recall on truck parts. Other auto-parts suppliers have also cited Ford for botched profit forecasts. TRW is also seeing lower-than-expected revenue at its space and electronics businesses and is spending more on new technology.

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