TRW Automotive reported third quarter 2005 financial results with sales of $2.9 billion, up 6.5% from the prior year. Net earnings were $10 million, lower than the $13 million in the prior year due to higher restructuring costs and commodity inflation. The company completed the acquisition of Dalphimetal, enhancing its occupant safety business. For the full year, TRW expects revenues of $12.6 billion and earnings per share of $1.65-$1.80, excluding certain one-time items.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
2. News Release
TRW Automotive
12001 Tech Center Drive
Livonia, MI 48150
Investor Relations Contact:
Patrick R. Stobb
(734) 855-3140
Media Contact:
Manley Ford
(734) 855-2616
TRW Automotive Reports Third Quarter 2005 Financial Results
LIVONIA, MICHIGAN, November 1, 2005 — TRW Automotive Holdings Corp. (NYSE:
TRW), the global leader in active and passive safety systems, today reported third-
quarter 2005 financial results with sales of $2.9 billion, an increase of 6.5 percent
compared to the same period a year ago. Net earnings for the quarter were $10 million
or $0.10 per diluted share, which compares to $13 million or $0.13 per diluted share in
the prior year quarter. Consistent with the Company’s expectations, net debt increased
from the previous quarter due to the impact of seasonal factors on its cash flows.
Third quarter net earnings were slightly above previously provided guidance due to
better than expected operating results, but below the comparable prior year period
primarily due to higher restructuring costs and increased commodity inflation levels in
the 2005 quarter. Additionally, during the quarter, the Company announced an
agreement to acquire a majority stake in Dalphi Metal Espana, S.A. (“Dalphimetal”), a
European based manufacturer of airbags and steering wheels. Subsequent to the
quarter-end, on October 27, the Company completed its acquisition of Dalphimetal,
which it funded with a combination of cash and existing credit facilities.
“In addition to posting solid results for the quarter and achieving our operational and
financial objectives, we made progress on our strategic initiatives with the acquisition of
Dalphimetal, which enhances our Occupant Safety Systems business and further
broadens the Company’s leading sales diversification,” said John Plant, president and
chief executive officer.
1
3. Mr. Plant added, “We’ve taken an aggressive approach to our cost reduction efforts this
year, driven by our need to adapt to changing industry conditions and growing
economic pressures. We believe the results of our cost reduction efforts and other
strategic initiatives will improve our long term competitiveness and best position the
Company to support the growing global demands of our customers.”
Third Quarter 2005
The Company reported third-quarter 2005 sales of $2.9 billion, an increase of $178
million or 6.5 percent compared to prior year sales of $2.7 billion. The increase
resulted primarily from higher product sales and foreign currency translation, partially
offset by pricing provided to customers and lower vehicle production volumes.
Operating income for third-quarter 2005 was $74 million, a decrease of $21 million
compared to the prior year period total of $95 million. The decrease resulted primarily
from the continued impact of commodity inflation above prior year levels, increased
restructuring and impairment expenses, and a higher level of research and
development costs, which were partially offset by the benefits of higher sales and cost
reduction programs in excess of pricing provided to customers and non-commodity
inflation. Restructuring and asset impairment expenses in the third quarter of 2005
were $35 million, which compares to $5 million in the prior year quarter. Operating
income after excluding the impact of restructuring and impairment expenses from both
periods increased by 9 percent compared to the prior year period.
Net interest and securitization expense for third-quarter 2005 totaled $59 million, which
is slightly below the prior year level of $60 million. The year-to-year reduction was
lessened by the impact of rising interest costs offsetting the Company’s deleveraging
activities, which include debt reduction and other capital structure improvement efforts.
During the quarter, the Company revised its annual tax rate assumption slightly
downward to 47 percent before one-time items. As a result of this change, tax expense
in the third quarter was $5 million (33 percent effective tax rate), which is the amount
required to bring the tax rate for the nine month period to the level of the revised annual
tax rate assumption of 47 percent. The Company reported third-quarter 2005 net
earnings of $10 million or $0.10 per diluted share, compared to net earnings of $13
million or $0.13 per diluted share in the 2004 period.
2
4. Earnings before interest, securitization costs, loss on retirement of debt, taxes,
depreciation and amortization (“EBITDA”) were $200 million for third-quarter 2005,
which compares to prior year EBITDA of $215 million. The decline in EBITDA resulted
primarily from the increase in restructuring charges and asset impairments.
Year-to-Date 2005
For the nine month period ended September 30, 2005, the Company reported sales of
$9.5 billion, an increase of $682 million or 7.7 percent compared to prior year sales of
$8.8 billion. The increase resulted primarily from higher product sales together with
foreign currency translation and the effect of five additional calendar days in the first
nine months of 2005, partially offset by pricing provided to customers and lower vehicle
production volumes. Operating income for the 2005 year-to-date period was $427
million, a decrease of $23 million compared to the prior year total of $450 million. The
decrease resulted primarily from the impact of commodity inflation above prior year
levels, increased restructuring and asset impairment costs, a higher level of research
and development expenses and the impact of customer solvency issues, partially offset
by the benefits of higher sales and cost reduction programs in excess of pricing
provided to customers and non-commodity inflation. Restructuring and asset
impairment expenses in the first nine months of 2005 were $56 million, compared to
$18 million in the prior year period. Operating income after excluding the impact of
restructuring and impairment expenses from both periods increased by 3 percent
compared to the prior year level.
Net interest and securitization expense for the first nine months of 2005 totaled $173
million, which compares to $183 million in the 2004 period. The reduction can be
attributed to the benefits derived from past deleveraging efforts in excess of the impact
of rising interest rates associated with the Company’s debt. During the 2005 period, the
Company incurred $7 million for loss on retirement of debt related to the partial
redemption of its Euro denominated 10-⅛ percent senior notes. The comparable 2004
period included debt retirement and refinancing expenses of $48 million related to the
Company’s initial public offering and a bank debt refinancing transaction.
3
5. Tax expense for the year-to-date 2005 period was $102 million, which included a one-
time tax benefit of $17 million resulting from a tax law change in Poland. The
Company’s year-to-date 2005 effective tax rate after excluding the $17 million tax
benefit and the effects of the $7 million loss on retirement of debt was 47 percent. Net
earnings for the first nine months of 2005 were $145 million or $1.42 per diluted share,
which compares to net earnings of $91 million or $0.91 per diluted share in the prior
year period. Net earnings excluding the impact of the $17 million one-time tax benefit
in 2005 and the previously mentioned losses on retirement of debt from both periods
were $135 million or $1.32 per diluted share in the 2005 period compared to $139
million or $1.39 per diluted share in the prior year.
EBITDA for the first nine months of 2005 totaled $807 million, which compares to $816
million in the prior year period. The decline in EBITDA resulted primarily from the
increase in restructuring charges and asset impairments.
Capital Structure/Liquidity
Net cash flow from operating activities during the third quarter and the first nine months
of 2005 was a use of $(90) million and a source of $122 million, respectively. Capital
expenditures for the quarter were $107 million compared to $86 million in the prior year
quarter. Year to date capital expenditures totaled $281 million, which compares to
$248 million in the prior year period. As of September 30, 2005, the Company had
$2,831 million of debt and $317 million of cash and marketable securities, resulting in
net debt (defined as debt less cash and marketable securities) of $2,514 million. Net
debt increased by $188 million compared to the end of the second quarter 2005 and
$142 million compared to year-end 2004, primarily due to seasonal factors.
Subsequent Event
On October 27, 2005, the Company completed its acquisition of a 68.4 percent stake of
Dalphimetal, which it purchased for approximately €112 million, or $134 million, subject
to post-closing adjustment, and the assumption of debt of approximately €80 million or
$96 million. The acquisition was funded with a combination of cash and existing credit
facilities. TRW will report Dalphimetal as a consolidated entity effective the date of the
acquisition.
4
6. 2005 Outlook
The Company is updating its full-year 2005 outlook to reflect, among other factors,
revised foreign currency and interest rate assumptions, updated production volumes
and an increased level of net pre-tax restructuring and asset impairment costs that are
expected to total $90 million. Conversely, the Company’s outlook has not been
updated to include the consolidation of Dalphimetal, which, excluding the potential
impact of purchase accounting adjustments, is not expected to have a material impact
on its 2005 operating results. As a result, the Company now expects full year revenues
of approximately $12.6 billion and earnings per diluted share in the range of $1.65 to
$1.80. Full year outlook after excluding the previously mentioned $17 million one-time
tax benefit and the $7 million loss on retirement of debt is expected to be in the range of
$1.55 to $1.70 per diluted share.
For the fourth quarter of 2005, the Company expects revenue of approximately $3.1
billion and net earnings in the range of $0.23 to $0.38 per diluted share. Fourth quarter
guidance includes net pre-tax restructuring and asset impairment expenses of
approximately $34 million.
Mr. Plant commented, “We’ve performed to the expectations we set at the beginning of
the year despite facing a more difficult industry environment than originally anticipated.
Much of our success under these conditions can be attributed to the dedication and
commitment of our employees and their ability to deliver the many cost reduction
initiatives demanded of them throughout the year. As we assess the mounting
challenges of the coming year and set our operating and financial objectives
accordingly, the same level of commitment and high level of execution will be essential
as we envision an environment that will test our ability to post flat to moderate earnings
growth in 2006.”
Third Quarter 2005 Conference Call
The Company will host its third-quarter 2005 conference call at 9:00 a.m. (EST) today,
Tuesday, November 1, to discuss financial results and other related matters. To
access the conference call, U.S. locations should dial (877) 852-7898, and locations
outside the U.S. should dial (706) 634-1095.
5
7. A replay of the conference call will be available approximately two hours after the
conclusion of the call and accessible for approximately one week. To access the
replay, U.S. locations should dial (800) 642-1687, and locations outside the U.S. should
dial (706) 645-9291. The replay code is 1178039.
A live audio web cast and subsequent replay of the conference call will also be
available on the Company’s website at www.trwauto.com/results.
Reconciliation to GAAP
In addition to GAAP results included within this press release, the Company has
provided certain information, which is not calculated according to GAAP (“non-GAAP”).
Management believes these non-GAAP measures are useful to evaluate operating
performance and/or regularly used by security analysts, institutional investors and other
interested parties in the evaluation of the Company. Non-GAAP measures are not
purported to be a substitute for any GAAP measure and as calculated, may not be
comparable to other similarly titled measures of other companies. For a reconciliation
of non-GAAP measures to the closest GAAP measure and for share amounts used to
derive earnings per share, please see the financial schedules that accompany this
release.
About TRW
With 2004 sales of $12.0 billion, TRW Automotive ranks among the world's leading
automotive suppliers. Headquartered in Livonia, Michigan, USA, the Company, through
its subsidiaries, employs approximately 60,000 people in 24 countries. TRW
Automotive products include integrated vehicle control and driver assist systems,
braking systems, steering systems, suspension systems, occupant safety systems
(seat belts and airbags), electronics, engine components, fastening systems and
aftermarket replacement parts and services. All references to quot;TRW Automotivequot;,
“TRW” or the quot;Companyquot; in this press release refer to TRW Automotive Holdings Corp.
and its subsidiaries, unless otherwise indicated. TRW Automotive news is available on
the internet at www.trwauto.com.
6
8. Forward-Looking Statements
This release contains statements that are not statements of historical fact, but instead
are forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All forward-looking statements involve risks and uncertainties.
Our actual results could differ materially from those contained in forward-looking
statements made in this release. Such risks, uncertainties and other important factors
which could cause our actual results to differ materially from those contained in our
forward-looking statements are set forth in our Report on Form 10-K for the fiscal year
ended December 31, 2004 (the “10-K”) and our Reports on Form 10-Q for the quarters
ended April 1 and July 1, 2005, and include: our ability to successfully integrate
Dalphimetal’s operations into the Company, which includes the retention of their
customer base; possible production cuts or restructuring by our customers; efforts by
our customers to consolidate their supply base; escalating pricing pressures from our
customers; severe inflationary pressures impacting the market for commodities; non-
performance by, or insolvency of, our suppliers and customers, which may be
exacerbated by recent bankruptcies; our substantial leverage; interest rate risk arising
from our variable rate indebtedness; product liability and warranty and recall claims; our
dependence on our largest customers; loss of market share by domestic vehicle
manufacturers; limitations on flexibility in operating our business contained in our debt
agreements; fluctuations in foreign exchange rates; the possibility that our owners'
interests will conflict with ours; work stoppages or other labor issues at our facilities or
at the facilities of our customers or suppliers and other risks and uncertainties set forth
under quot;Risk Factorsquot; in the 10-K and in our other SEC filings. We do not intend or
assume any obligation to update any of these forward-looking statements.
###
7
9. TRW Automotive Holdings Corp.
Index of Condensed Consolidated Financial Information
Page
Consolidated Statements of Operations (unaudited)
for the three months ended September 30, 2005 and September 24, 2004..................................A2
Consolidated Statements of Operations (unaudited)
for the nine months ended September 30, 2005 and September 24, 2004...................................A3
Consolidated Balance Sheets
as of September 30, 2005 (unaudited) and December 31, 2004 .................................................. A4
Condensed Consolidated Statements of Cash Flows (unaudited)
for the nine months ended September 30, 2005 and September 24, 2004................................... A5
Reconciliation of GAAP Net Earnings to EBITDA (unaudited)
for the three and nine months ended September 30, 2005 and September 24, 2004 ................... A6
Reconciliation of Impact of Debt Retirement and Income Tax Items
for the nine months ended September 30, 2005........................................................................... A7
The accompanying unaudited consolidated financial information and reconciliation schedules should be
read in conjunction with the TRW Automotive Holdings Corp. Form 10-K for the year ended December
31, 2004 and Forms 10-Q for the quarterly periods ended April 1, 2005 and July 1, 2005 as filed with
the United States Securities and Exchange Commission on February 23, 2005, May 5, 2005 and August
2, 2005, respectively.
A1
10. TRW Automotive Holdings Corp.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
September 30, September 24,
2005 2004
(In millions, except per share amounts)
Sales.......................................................................................... $ 2,917 $ 2,739
Cost of sales.............................................................................. 2,623 2,458
Gross profit......................................................................... 294 281
Administrative and selling expenses......................................... 135 130
Research and development expenses ........................................ 43 36
Amortization of intangible assets ............................................. 8 8
Restructuring charges and asset impairments ........................... 35 5
Other (income) expense — net ................................................. (1) 7
Operating income ............................................................... 74 95
Interest expense — net.............................................................. 59 59
Accounts receivable securitization costs .................................. — 1
Earnings before income taxes........................................... 15 35
Income tax expense................................................................... 5 22
Net earnings ...................................................................... $ 10 $ 13
Basic earnings per share:
Earnings per share................................................................... $ 0.10 $ 0.13
Weighted average shares ........................................................ 99.1 98.9
Diluted earnings per share:
Earnings per share................................................................... $ 0.10 $ 0.13
Weighted average shares ........................................................ 103.1 101.2
A2
11. TRW Automotive Holdings Corp.
Consolidated Statements of Operations
(Unaudited)
Nine Months Ended
September 30, September 24,
2005 2004
(In millions, except per share amounts)
Sales ......................................................................................... $ 9,507 $ 8,825
Cost of sales ............................................................................. 8,443 7,840
Gross profit ........................................................................ 1,064 985
Administrative and selling expenses ........................................ 397 386
Research and development expenses........................................ 149 115
Amortization of intangible assets ............................................. 24 25
Restructuring charges and asset impairments........................... 56 18
Other (income) expense — net................................................. 11 (9)
Operating income............................................................... 427 450
Interest expense — net ............................................................. 171 181
Loss on retirement of debt........................................................ 7 48
Accounts receivable securitization costs .................................. 2 2
Earnings before income taxes .......................................... 247 219
Income tax expense .................................................................. 102 128
Net earnings ...................................................................... $ 145 $ 91
Basic earnings per share:
Earnings per share .................................................................. $ 1.46 $ 0.93
Weighted average shares ........................................................ 99.0 97.4
Diluted earnings per share:
Earnings per share .................................................................. $ 1.42 $ 0.91
Weighted average shares ........................................................ 102.0 100.2
A3
12. TRW Automotive Holdings Corp.
Consolidated Balance Sheets
As of
September 30, December 31,
2005 2004
(Unaudited)
(Dollars in millions)
Assets
Current assets:
Cash and cash equivalents......................................................................... $ 300 $ 790
Marketable securities ................................................................................ 17 19
Accounts receivable — net ....................................................................... 1,959 1,813
Inventories................................................................................................. 656 684
Prepaid expenses ....................................................................................... 83 34
Deferred income taxes .............................................................................. 162 176
Total current assets ..................................................................................... 3,177 3,516
Property, plant and equipment — net ......................................................... 2,405 2,635
Goodwill ..................................................................................................... 2,357 2,357
Intangible assets — net ............................................................................... 740 765
Prepaid pension cost ................................................................................... 214 190
Deferred income taxes ................................................................................ 120 91
Other assets ................................................................................................. 577 560
Total assets .............................................................................................. $ 9,590 $ 10,114
Liabilities, Minority Interests and Stockholders’ Equity
Current liabilities:
Short-term debt ......................................................................................... $ 38 $ 40
Current portion of long-term debt............................................................. 17 19
Trade accounts payable............................................................................. 1,721 1,887
Accrued compensation.............................................................................. 285 309
Income taxes payable................................................................................ 242 233
Other current liabilities ............................................................................. 995 992
Total current liabilities ................................................................................ 3,298 3,480
Long-term debt............................................................................................ 2,776 3,122
Post-retirement benefits other than pensions .............................................. 930 959
Pension benefits .......................................................................................... 715 843
Deferred income taxes ................................................................................ 261 268
Long-term liabilities.................................................................................... 307 272
Total liabilities......................................................................................... 8,287 8,944
Minority interests ........................................................................................ 56 65
Commitments and contingencies
Stockholders’ equity:
Capital stock.............................................................................................. 1 1
Treasury stock........................................................................................... — —
Paid-in-capital ........................................................................................... 1,139 1,131
Retained earnings (accumulated deficit)................................................... 73 (72)
Accumulated other comprehensive earnings ............................................ 34 45
Total stockholders’ equity........................................................................... 1,247 1,105
Total liabilities, minority interests, and stockholders’ equity.................. $ 9,590 $ 10,114
A4
13. TRW Automotive Holdings Corp.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30, September 24,
2005 2004
(Dollars in millions)
Operating Activities
Net earnings......................................................................................................... $ 145 $ 91
Adjustments to reconcile net earnings to net cash used in operating
activities:
Depreciation and amortization ................................................................... 380 366
Other — net..................................................................................................... (84) 64
Changes in assets and liabilities, net of effects of businesses acquired
or divested ......................................................................................................... (319) (485)
Net cash provided by operating activities....................................................... 122 36
Investing Activities
Capital expenditures ............................................................................................ (281) (248)
Acquisitions, net of cash acquired....................................................................... (3) (5)
Investments in affiliates....................................................................................... (8) —
Net proceeds from asset sales and divestitures.................................................... 4 79
Net cash used in investing activities ......................................................... (288) (174)
Financing Activities
Change in short-term debt ................................................................................... (1) 6
Proceeds from issuance of long-term debt .......................................................... 1,313 1,290
Redemption of long-term debt............................................................................. (1,601) (1,855)
Debt issue costs ................................................................................................... (4) (7)
Issuance of capital stock, net of fees ................................................................... 143 635
Repurchase of capital stock ................................................................................. (143) (319)
Proceeds from exercise of stock options ............................................................. 2 —
Net cash used in financing activities.......................................................... (291) (250)
Effect of exchange rate changes on cash ............................................................. (33) (2)
Decrease in cash and cash equivalents ................................................................ (490) (390)
Cash and cash equivalents at beginning of period............................................... 790 828
Cash and cash equivalents at end of period ......................................................... $ 300 $ 438
A5
14. TRW Automotive Holdings Corp.
Reconciliation of GAAP Net Earnings to EBITDA
(Unaudited)
The reconciliation schedule below should be read in conjunction with the TRW Automotive Holdings Corp. Form 10-K
for the year ended December 31, 2004 and Forms 10-Q for the quarterly periods ended April 1, 2005 and July 1, 2005,
which contain summary historical data.
The EBITDA measure calculated in the following schedule is a measure used by management to evaluate operating
performance. Management believes that EBITDA is a useful measurement because it is frequently used by securities
analysts, institutional investors and other interested parties in the evaluation of companies in our industry.
EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net earnings (losses) as an
indicator of operating performance, or to cash flows from operating activities as a measure of liquidity. Additionally,
EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider
certain cash requirements such as interest payments, tax payments and debt service requirements. Because not all
companies use identical calculations, this presentation of EBITDA may not be comparable to other similarly titled
measures of other companies.
Three Months Ended
September 30, September 24,
2005 2004
(Dollars in millions)
GAAP net earnings............................................................... $ 10 $ 13
Income tax expense.......................................................... 5 22
Interest expense, net of interest income ........................... 59 59
Accounts receivable securitization costs.......................... — 1
Depreciation and amortization......................................... 126 120
EBITDA ................................................................................ $ 200 $ 215
Nine Months Ended
September 30, September 24,
2005 2004
(Dollars in millions)
GAAP net earnings............................................................... $ 145 $ 91
Income tax expense.......................................................... 102 128
Interest expense, net of interest income ........................... 171 181
Accounts receivable securitization costs.......................... 2 2
Loss on retirement of debt ............................................... 7 48
Depreciation and amortization......................................... 380 366
EBITDA ................................................................................ $ 807 $ 816
A6
15. TRW Automotive Holdings Corp.
Reconciliation of Impact of Debt Retirement
and Income Tax Items
(unaudited)
In conjunction with the Company’s May 3, 2005 repurchase of approximately €48 million principal amount of its
10⅛% Senior Notes, the Company incurred $7 million of losses on retirement of debt consisting of $6 million of
related redemption premium and $1 million for write-off of deferred debt issuance costs. Such debt retirement
expenses were U.S.-based, and therefore carry zero tax benefit due to the Company’s tax loss position in this
jurisdiction.
Income tax expense for the nine months ended September 30, 2005 includes a one-time benefit of $17 million
resulting from a tax law change in Poland related to investment tax credits for companies operating in certain special
economic zones within the country. The investment tax credits replace the tax holiday that was previously in effect for
the Company.
The following adjustments exclude the loss on retirement of debt, as well as the one-time income tax benefit, to show
the impact as if these transactions had not occurred.
Nine Months Nine Months
ended ended
September 30, September 30,
2005 2005
Actual Adjustments Adjusted
(In millions, except per share amounts)
Operating income.................................................. $ 427 $ — $ 427
Interest expense, net.............................................. 171 — 171
(a)
Loss on retirement of debt..................................... 7 (7) —
Account Receivable Securitization ....................... 2 — 2
Earnings before income taxes ........................... 247 7 254
(b)
Income tax expense .............................................. 102 17 119
Net earnings ...................................................... $ 145 $ (10) $ 135
Effective tax rate ................................................... 41% 47%
Basic earnings per share:
Earnings per share............................................... $ 1.46 $ 1.36
Weighted average shares..................................... 99.0 99.0
Diluted earnings per share:
Earnings per share............................................... $ 1.42 $ 1.32
Weighted average shares..................................... 102.0 102.0
(a) Reflects the elimination of the loss on retirement of debt incurred in conjunction with repurchase of a portion of the
Company’s 10⅛% Senior Notes.
(b) Reflects the elimination of one-time income tax benefit related to a tax law change in Poland.
A7
16. TRW Automotive Holdings Corp.
2005 Third Quarter Financial
Results Conference Call
November 1, 2005
“The Global Leader in Automotive Safety Systems”