This document provides financial results and an outlook for TRW Automotive Holdings Corp. for the second quarter and first half of 2008. It includes a press release summarizing key financial figures, as well as supplementary financial summaries and presentation slides. For the second quarter, TRW reported sales of $4.4 billion, an 18.4% increase from the prior year, and net earnings of $127 million. For the first half, sales were $8.6 billion, up 17.3%, and net earnings were $221 million. The company increased its full year 2008 sales and earnings guidance but noted deteriorating conditions in North America and expectations of a softening European market.
This document brings together a set of latest data points and publicly available information relevant for Financial Services Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
This document brings together a set of latest data points and publicly available information relevant for Financial Services Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
The secret way to sell pi coins effortlessly.DOT TECH
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What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
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@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
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How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
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.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
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.
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.
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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.
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@Pi_vendor_247
2. News Release
TRW Automotive
12001 Tech Center Drive
Livonia, MI 48150
Investor Relations Contact:
Eric Birge
(734) 855-3115
Media Contact:
John Wilkerson
(734) 855-3864
TRW Automotive Reports Second Quarter 2008 Financial Results;
Provides Update on 2008 Outlook
LIVONIA, MICHIGAN, July 31, 2008 — TRW Automotive Holdings Corp. (NYSE:
TRW), the global leader in active and passive safety systems, today reported second-
quarter 2008 financial results with sales of $4.4 billion, an increase of 18.4 percent
compared to the same period a year ago. The Company reported second quarter net
earnings of $127 million or $1.24 per diluted share, which compares to net earnings of
$97 million or $0.94 per diluted share in the prior year period.
During the second quarter of the previous year, the Company completed the final step
of its 2007 debt recapitalization plan with the successful refinancing of its $2.5 billion
credit facilities. The second quarter results of last year included $8 million of costs
related to this refinancing. Excluding the refinancing costs in 2007, the Company
earned $127 million or $1.24 per diluted share in the 2008 quarter compared to $105
million, or $1.02 per diluted share in the prior year. The current quarter benefited from
a higher level of operating income, despite increased restructuring and asset
impairment charges between the two periods, and also from a lower level of interest
expense.
“Our second quarter and first half results have demonstrated the strength of TRW’s
safety product portfolio, leading customer and geographical diversification and the
Company’s intense cost reduction efforts,” said John Plant, President and Chief
Executive Officer. “These strengths have allowed TRW to mitigate the increasingly
challenging industry conditions, primarily in North America, and provide the basis for
the continued advancement of the Company’s strategic and operational objectives.”
1
3. Mr. Plant added, “The transformation of TRW is not complete as we need to
successfully react to the changing automotive landscape, while continuing to provide
leading safety technologies, whose prospects we expect will be further enhanced by
growth in emerging markets. We continue to explore strategies that will strengthen our
competitiveness and help to achieve our goal of growing the Company profitably over
the long term.”
Second Quarter 2008
The Company reported second-quarter 2008 sales of $4.4 billion, an increase of $692
million or 18.4 percent over the prior year period. The 2008 quarter benefited from the
positive effect of foreign currency translation, higher customer vehicle production in
Europe and China and continued growth of safety products in all markets, including
above-trend sales of lower margin modules. These positive factors were partially offset
by lower vehicle production levels at our major customers in North America and price
reductions provided to customers.
Operating income for second-quarter 2008 was $224 million, which compares to $205
million in the prior year period. The year-to-year increase was driven by a number of
factors, including savings generated from cost improvement and efficiency programs,
including reductions in pension and other postretirement benefit related costs, higher
product volumes, the net positive effect of an insurance recovery totaling $14 million
received in the current quarter relating to a prior year business disruption at one of the
Company’s manufacturing facilities, and the non-recurrence of certain one-off items that
netted to an expense in the prior year. These positive factors were in part offset by
price reductions provided to customers, higher commodity prices, a negative mix of
products sold and a $13 million increase in restructuring and asset impairment
expenses.
Net interest and securitization expense for the second quarter of 2008 totaled $44
million, which compares to $57 million in the prior year. The year-to-year decline can
be attributed to the benefits derived from the Company’s 2007 debt recapitalization and
lower interest rates between the two periods. As mentioned previously, the 2007
quarter also included debt retirement costs of $8 million.
2
4. Second-quarter 2008 tax expense was $56 million, resulting in an effective tax rate of
31 percent, which compares to $45 million or 30 percent in the prior year, excluding
debt retirement expenses. The second-quarter 2008 tax rate is below the expected full
year rate primarily due to the Company’s geographic earnings profile and other factors
in the quarter.
The Company reported second-quarter 2008 net earnings of $127 million, or $1.24 per
diluted share, which compares to $97 million or $0.94 per diluted share in the 2007
period. Net earnings in the 2007 quarter excluding previously mentioned debt
retirement costs of $8 million were $105 million or $1.02 per diluted share.
Earnings before interest, securitization costs, loss on retirement of debt, taxes,
depreciation and amortization (“EBITDA”) were $380 million in the second quarter, as
compared to the prior year level of $344 million.
First Half 2008
The Company reported first-half 2008 sales of $8.6 billion, an increase of $1.3 billion or
17.3 percent compared to prior year sales of $7.3 billion. The 2008 period benefited
primarily from the positive effect of foreign currency translation, higher product volumes
related to new product growth, including above-trend sales of lower margin modules,
and robust industry sales in overseas markets. These positives were partially offset by
the continued decline in North American customer vehicle production and price
reductions provided to customers.
Operating income for the first half of 2008 was $412 million, which is an 8.4 percent
increase from the prior year result of $380 million. The year-to-year improvement was
driven by a number of factors, including savings generated from cost improvement and
efficiency programs, including reductions in pension and OPEB related costs, higher
product volumes, the net positive effect of an insurance recovery received in 2008
relating to a prior year business disruption, and the non-recurrence of certain one-off
items that netted to an expense in the prior year. These positives were partially offset
by price reductions provided to customers, negative product mix, higher commodity
prices and a higher level of restructuring and asset impairment expenses in 2008
compared to the prior year.
3
5. Net interest and securitization expense in the first-half 2008 period was $93 million,
which represents a significant improvement from the prior year result of $121 million.
The decline in interest expense resulted primarily from the Company’s debt
recapitalization completed in the first half of 2007 and lower interest rates between the
two periods. The 2007 period also included debt retirement costs of $155 million
related to the debt recapitalization.
First-half 2008 tax expense was $103 million, resulting in an effective tax rate of 32
percent, which compares to $98 million or 37 percent excluding previously mentioned
debt retirement expenses in the prior year.
The Company reported first-half 2008 net earnings of $221 million, or $2.16 per diluted
share, which compares to $11 million or $0.11 per diluted share in the 2007 period.
The comparison of net earnings, excluding the previously mentioned debt retirement
costs from the prior year, were $221 million, or $2.16 per diluted share in 2008 as
compared to $166 million or $1.62 per diluted share in 2007.
EBITDA was $717 million in the first half of 2008, which is a 9.8 percent increase from
the prior year level of $653 million primarily due to the higher level of operating income
in the current year.
Cash Flow and Capital Structure
Second quarter 2008 net cash provided by operations was $40 million, which compares
to $290 million in the prior year. Cash flow in the 2007 period included proceeds of
$127 million related to outstanding borrowings under the Company’s U.S. based
Accounts Receivable Securitization Facility (“Receivable Facility”). Absent these
proceeds, the Company’s cash flow from operations in the 2007 quarter was $163
million. Second quarter 2008 capital expenditures were $120 million compared to $109
million in 2007.
For the six month period ended June 27, 2008, the Company had a net cash usage in
operating activities of $75 million, which compares to net cash generated of $69 million
in the prior year. Excluding proceeds related to outstanding borrowings under the
Receivable Facility, cash flow from operations was a use of $58 million in the 2007
period. The year-to-year decline resulted primarily from higher working capital
4
6. requirements, partly offset by higher operating income. First half capital expenditures
were $217 million compared to $228 million in 2007.
As mentioned previously, the Company refinanced substantially all of its debt in 2007.
The Company incurred debt retirement charges of approximately $155 million during
the 2007 year-to-date period related to these transactions.
As of June 27, 2008, the Company had $3,122 million of debt and $453 million of cash
and marketable securities, resulting in net debt (defined as debt less cash and
marketable securities) of $2,669 million. Net debt is $324 million higher than the
balance at the end of 2007.
2008 Outlook
The Company increased its full year outlook to reflect the strong second quarter
outcome, partially offset by a lower outlook for the second half of 2008. Sales are now
expected to be in the range of $16.4 to $16.8 billion (including third quarter sales of
approximately $3.9 billion). Full year net earnings per share are now expected to be in
the range of $2.40 to $2.70.
This guidance range reflects pre-tax restructuring and asset impairment charges of
approximately $75 million (including approximately $25 million in the third quarter). The
effective tax rate is expected to be in the range of approximately 38 to 42 percent.
Lastly, the Company expects capital expenditures in 2008 to be approximately 3.5
percent of sales.
“In recent months, the outlook for the North American automotive industry has further
deteriorated with the decline in overall production of light vehicles, the shift of
production away from light trucks to passenger cars and severe commodity inflation
being the primary pressures in this market,” said Mr. Plant. “Our updated 2008 outlook
provided today reflects the weaker outlook for the North American market as well as our
expectations for a softening production environment in Europe.” Mr. Plant added, “The
pressures we are seeing for the second half of 2008 will undoubtedly continue into
2009.”
Second Quarter 2008 Conference Call
The Company will host its second-quarter conference call at 8:30 a.m. (EDT) today,
Thursday, July 31, to discuss financial results and other related matters. To access the
5
7. conference call, U.S. locations should dial (877) 852-7898, and locations outside the
U.S. should dial (706) 634-1095.
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 55410719. A live audio webcast and
subsequent replay of the conference call will also be available on the Company’s
website at www.trw.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 2007 sales of $14.7 billion, TRW Automotive ranks among the world's leading
automotive suppliers. Headquartered in Livonia, Michigan, USA, the Company, through
its subsidiaries, operates in 27 countries and employs approximately 66,300 people
worldwide. 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;, quot;TRWquot; 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.trw.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. We caution readers not to place undue reliance on these
statements, which speak only as of the date hereof. All forward-looking statements are
subject to numerous assumptions, risks and uncertainties which can cause our actual
results to differ materially from those suggested by the forward-looking statements,
including those set forth in our Report on Form 10-K for the fiscal year ended
December 31, 2007, such as: loss of market share, production cuts and capacity
reductions by domestic North American vehicle manufacturers and resulting
restructuring initiatives, including bankruptcy actions, of our suppliers and customers;
escalating pricing pressures from our customers; commodity inflationary pressures
adversely affecting our profitability and supply base, including any resulting inability of
our suppliers to perform as we expect; our dependence on our largest customers;
product liability, warranty and recall claims and efforts by customers to alter terms and
conditions concerning warranty and recall participation; strengthening of the U.S. dollar
and other foreign currency exchange rate fluctuations; work stoppages or other labor
issues at our facilities or at the facilities of our customers or suppliers; our substantial
debt and resulting vulnerability to an economic or industry downturn and to rising
interest rates; cyclicality of automotive production and sales; any increase in the
expense and funding requirements of our pension and other postretirement benefits;
risks associated with non-U.S. operations, including foreign exchange risks and
economic uncertainty in some regions; any impairment of our goodwill or other
intangible assets; volatility in our annual effective tax rate resulting from a change in
earnings mix or other factors; adverse effects of environmental and safety regulations;
assertions by or against us relating to intellectual property rights; the possibility that our
largest shareholder's interests will conflict with ours; and other risks and uncertainties
set forth in our Report on Form 10-K and in our other filings with the Securities and
Exchange Commission. We do not undertake any obligation to release publicly any
revision to any of these forward-looking statements.
###
7
9. TRW Automotive Holdings Corp.
Index of Condensed Consolidated Financial Information
Page
Consolidated Statements of Earnings (unaudited)
for the three months ended June 27, 2008 and June 29, 2007 .......................................................A2
Consolidated Statements of Earnings (unaudited)
for the six months ended June 27, 2008 and June 29, 2007 ...........................................................A3
Condensed Consolidated Balance Sheets as of
June 27, 2008 (unaudited) and December 31, 2007 .......................................................................A4
Condensed Consolidated Statements of Cash Flows (unaudited)
for the six months ended June 27, 2008 and June 29, 2007 ...........................................................A5
Reconciliation of GAAP Net Earnings to EBITDA (unaudited)
for the three and six months ended June 27, 2008 and June 29, 2007 ...........................................A6
Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited)
for the three months ended June 29, 2007 ......................................................................................A7
Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited)
for the six months ended June 29, 2007..........................................................................................A8
The accompanying unaudited condensed consolidated financial information and reconciliation
schedules should be read in conjunction with the TRW Automotive Holdings Corp. Annual Report
on Form 10-K for the year ended December 31, 2007 and Quarterly Report on Form 10-Q for the
period ended March 28, 2008, as filed with the United States Securities and Exchange
Commission on February 21, 2008 and April 30, 2008, respectively.
10. TRW Automotive Holdings Corp.
Consolidated Statements of Earnings
(Unaudited)
Three Months Ended
(In millions, except per share amounts)
June 27, 2008 June 29, 2007
Sales ........................................................................................... $ 4,446 $ 3,754
Cost of sales ............................................................................... 4,045 3,417
Gross profit............................................................................ 401 337
Administrative and selling expenses........................................... 136 140
Amortization of intangible assets ................................................ 9 9
Restructuring charges and asset impairments............................ 24 11
Other expense (income) — net................................................... 8 (28)
Operating income.................................................................. 224 205
Interest expense — net............................................................... 43 56
Loss on retirement of debt .......................................................... — 8
Accounts receivable securitization costs .................................... 1 1
Equity in earnings of affiliates, net of tax .................................... (8) (9)
Minority interest, net of tax.......................................................... 5 7
Earnings before income taxes ............................................. 183 142
Income tax expense.................................................................... 56 45
Net earnings ....................................................................... $ 127 $ 97
Basic earnings per share:
Earnings per share.................................................................... $ 1.26 $ 0.97
Weighted average shares outstanding ..................................... 101.1 99.5
Diluted earnings per share:
Earnings per share.................................................................... $ 1.24 $ 0.94
Weighted average shares outstanding ..................................... 102.6 103.4
A2
11. TRW Automotive Holdings Corp.
Consolidated Statements of Earnings
(Unaudited)
Six Months Ended
(In millions, except per share amounts)
June 27, 2008 June 29, 2007
Sales ........................................................................................... $ 8,590 $ 7,321
Cost of sales ............................................................................... 7,848 6,668
Gross profit............................................................................ 742 653
Administrative and selling expenses........................................... 268 268
Amortization of intangible assets ................................................ 18 18
Restructuring charges and asset impairments............................ 32 19
Other expense (income) — net................................................... 12 (32)
Operating income.................................................................. 412 380
Interest expense — net............................................................... 91 119
Loss on retirement of debt .......................................................... — 155
Accounts receivable securitization costs .................................... 2 2
Equity in earnings of affiliates, net of tax .................................... (15) (15)
Minority interest, net of tax.......................................................... 10 10
Earnings before income taxes ............................................. 324 109
Income tax expense.................................................................... 103 98
Net earnings ....................................................................... $ 221 $ 11
Basic earnings per share:
Earnings per share.................................................................... $ 2.19 $ 0.11
Weighted average shares outstanding ..................................... 100.9 99.0
Diluted earnings per share:
Earnings per share.................................................................... $ 2.16 $ 0.11
Weighted average shares outstanding ..................................... 102.3 102.5
A3
12. TRW Automotive Holdings Corp.
Condensed Consolidated Balance Sheets
As of
(Dollars in millions)
June 27, December 31,
2008 2007
(Unaudited)
Assets
Current assets:
Cash and cash equivalents .................................................... $ 453 $ 895
Marketable securities.............................................................. — 4
Accounts receivable — net..................................................... 3,165 2,313
Inventories .............................................................................. 944 822
Prepaid expenses and other current assets ........................... 419 292
Total current assets..................................................................... 4,981 4,326
Property, plant and equipment — net ......................................... 2,987 2,910
Goodwill ...................................................................................... 2,249 2,243
Intangible assets — net............................................................... 715 710
Pension asset.............................................................................. 1,500 1,461
Other assets................................................................................ 711 640
Total assets ............................................................................. $ 13,143 $ 12,290
Liabilities, Minority Interests and Stockholders’ Equity
Current liabilities:
Short-term debt ...................................................................... $ 90 $ 64
Current portion of long-term debt........................................... 16 30
Trade accounts payable......................................................... 2,710 2,406
Accrued compensation .......................................................... 329 298
Other current liabilities ........................................................... 1,133 917
Total current liabilities ................................................................. 4,278 3,715
Long-term debt............................................................................ 3,016 3,150
Postretirement benefits other than pensions............................... 580 591
Pension benefits.......................................................................... 493 497
Other long-term liabilities ............................................................ 1,055 1,011
Total liabilities.......................................................................... 9,422 8,964
Minority interests ......................................................................... 149 134
Commitments and contingencies
Stockholders’ equity:
Capital stock .......................................................................... 1 1
Treasury stock........................................................................ — —
Paid-in-capital ........................................................................ 1,189 1,176
Retained earnings .................................................................. 622 398
Accumulated other comprehensive earnings ......................... 1,760 1,617
Total stockholders’ equity............................................................ 3,572 3,192
Total liabilities, minority interests, and stockholders’ equity .... $ 13,143 $ 12,290
A4
13. TRW Automotive Holdings Corp.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
(Dollars in millions)
June 27, 2008 June 29, 2007
Operating Activities
Net earnings ....................................................................................... $ 221 $ 11
Adjustments to reconcile net earnings to net cash (used in)
provided by operating activities:
Depreciation and amortization.......................................................... 300 268
Net pension and other postretirement benefits income and
contributions ................................................................................... (105) (94)
Net gains on sale of assets .............................................................. (3) (12)
Loss on retirement of debt................................................................ — 155
Other — net ...................................................................................... 18 21
Changes in assets and liabilities, net of effects of businesses
acquired:
Accounts receivable — net............................................................. (710) (450)
Inventories ...................................................................................... (59) (54)
Trade accounts payable ................................................................. 176 201
Prepaid expense and other assets ................................................. (107) (38)
Other liabilities ................................................................................ 194 61
Net cash (used in) provided by operating activities ........................ (75) 69
Investing Activities
Capital expenditures, including other intangible assets ..................... (217) (228)
Acquisitions of businesses, net of cash acquired............................... (40) (12)
Termination of interest rate swaps ..................................................... — (12)
Investment in affiliates........................................................................ (5) —
Proceeds from sale/leaseback transactions....................................... 1 6
Net proceeds from asset sales........................................................... 3 17
Net cash used in investing activities............................................... (258) (229)
Financing Activities
Change in short-term debt.................................................................. 26 50
Net (repayments on) proceeds from revolving credit facility ............. (129) 200
Proceeds from issuance of long-term debt, net of fees ...................... 4 2,582
Redemption of long-term debt............................................................ (55) (2,993)
Proceeds from exercise of stock options............................................ 4 28
Net cash used in financing activities .............................................. (150) (133)
Effect of exchange rate changes on cash .......................................... 41 (10)
Decrease in cash and cash equivalents............................................. (442) (303)
Cash and cash equivalents at beginning of period............................. 895 578
Cash and cash equivalents at end of period ...................................... $ 453 $ 275
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.
Annual Report on Form 10-K for the year ended December 31, 2007 and Quarterly Report on Form 10-Q
for the period ended March 28, 2008.
The EBITDA measure calculated in the following schedules 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
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 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
(Dollars in millions)
June 27, 2008 June 29, 2007
GAAP net earnings ....................................................... $ 127 $ 97
Income tax expense ................................................ 56 45
Interest expense — net ........................................... 43 56
Loss on retirement of debt ...................................... — 8
Accounts receivable securitization costs................. 1 1
Depreciation and amortization ................................ 153 137
EBITDA ......................................................................... $ 380 $ 344
Six Months Ended
(Dollars in millions)
June 27, 2008 June 29, 2007
GAAP net earnings ....................................................... $ 221 $ 11
Income tax expense ................................................ 103 98
Interest expense — net ........................................... 91 119
Loss on retirement of debt ...................................... — 155
Accounts receivable securitization costs................. 2 2
Depreciation and amortization ................................ 300 268
EBITDA ......................................................................... $ 717 $ 653
A6
15. TRW Automotive Holdings Corp.
Reconciliation of GAAP Net Earnings to Adjusted Earnings
(Unaudited)
In conjunction with the Company’s tender offer and repurchases of its then outstanding 9⅜% Senior
Notes and 10⅛% Senior Notes in original principal amounts of $925 million and €200 million,
respectively, and 11% Senior Subordinated Notes and 11¾% Senior Subordinated Notes in original
principal amounts of $300 million and €125 million, respectively (collectively, the “Old Notes”), the
Company recorded a loss on retirement of debt of $1 million during the three months ended June 29,
2007 for additional redemption premiums paid.
The Company entered into its Fifth Amended and Restated Credit Agreement dated as of May 9, 2007,
which provides for $2.5 billion in senior secured credit facilities, consisting of (i) a 5-year $1.4 billion
Revolving Credit Facility, (ii) a 6-year $600 million Term Loan A-1 Facility and (iii) a 6.75-year $500 million
Term Loan B-1 Facility (collectively, the “Facilities”). Proceeds from the Facilities were used to refinance
$2.5 billion of existing senior secured credit facilities and pay fees and expenses related to the
refinancing. The Company recorded a loss on retirement of debt related to the transaction of $7 million
during the second quarter of 2007.
The following reconciliation excludes the impact of the loss on retirement of debt.
Three Months Three Months
Ended Ended
June 29, 2007 June 29,2007
Actual Adjustments Adjusted
(In millions, except per share amounts)
Sales ..................................................................... $ 3,754 $ — $ 3,754
Cost of sales ......................................................... 3,417 — 3,417
Gross profit........................................................ 337 — 337
Administrative and selling expenses..................... 140 — 140
Amortization of intangible assets .......................... 9 — 9
Restructuring charges and asset impairments...... 11 — 11
Other income — net .............................................. (28) — (28)
Operating income.............................................. 205 — 205
Interest expense, net............................................. 56 — 56
(a)
Loss on retirement of debt .................................... 8 (8) —
Accounts receivable securitization costs .............. 1 — 1
Equity in earnings of affiliates, net of tax .............. (9) — (9)
Minority interest, net of tax .................................... 7 — 7
Earnings before income taxes .......................... 142 8 150
Income tax expense ............................................. 45 — 45
Net earnings ..................................................... $ 97 $ 8 $ 105
Effective tax rate ................................................... 32% 30%
Basic earnings per share:
Earnings per share.............................................. $ 0.97 $ 1.06
Weighted average shares outstanding ............... 99.5 99.5
Diluted earnings per share:
Earnings per share.............................................. $ 0.94 $ 1.02
Weighted average shares outstanding ............... 103.4 103.4
(a) Reflects the elimination of the loss on retirement of debt.
A7
16. TRW Automotive Holdings Corp.
Reconciliation of GAAP Net Earnings to Adjusted Earnings
(Unaudited)
In conjunction with the Company’s tender offer and repurchases of its then outstanding Old Notes, the Company
recorded a loss on retirement of debt of $148 million during the six months ended June 29, 2007. This loss included
$112 million for redemption premiums paid, $20 million for the write-off of deferred debt issuance costs, $11 million
relating to the principal amount in excess of carrying value of the 9⅜% Senior Notes and $5 million of fees.
The Company entered into its Fifth Amended and Restated Credit Agreement dated as of May 9, 2007, which
provides for $2.5 billion in senior secured credit facilities, consisting of (i) a 5-year $1.4 billion Revolving Credit
Facility, (ii) a 6-year $600 million Term Loan A-1 Facility and (iii) a 6.75-year $500 million Term Loan B-1 Facility
(collectively, the “Facilities”). Proceeds from the Facilities were used to refinance $2.5 billion of existing senior
secured credit facilities and pay fees and expenses related to the refinancing. The Company recorded a loss on
retirement of debt related to the transaction of $7 million during the second quarter of 2007.
The following reconciliation excludes the impact of the loss on retirement of debt.
Six Months Six Months
Ended Ended
June 29, 2007 June 29, 2007
Actual Adjustments Adjusted
(In millions, except per share amounts)
Sales ..................................................................... $ 7,321 $ — $ 7,321
Cost of sales ......................................................... 6,668 — 6,668
Gross profit ....................................................... 653 — 653
Administrative and selling expenses..................... 268 — 268
Amortization of intangible assets .......................... 18 — 18
Restructuring charges and asset impairments ..... 19 — 19
Other income — net.............................................. (32) — (32)
Operating income.............................................. 380 — 380
Interest expense, net ............................................ 119 — 119
(a)
Loss on retirement of debt .................................... 155 (155) —
Accounts receivable securitization costs .............. 2 — 2
Equity in earnings of affiliates, net of tax .............. (15) — (15)
Minority interest, net of tax.................................... 10 — 10
Earnings before income taxes .......................... 109 155 264
Income tax expense ............................................. 98 — 98
Net earnings ..................................................... $ 11 $ 155 $ 166
Effective tax rate ................................................... 90% 37%
Basic earnings per share:
Earnings per share ............................................. $ 0.11 $ 1.68
Weighted average shares outstanding ............... 99.0 99.0
Diluted earnings per share:
Earnings per share ............................................. $ 0.11 $ 1.62
Weighted average shares outstanding ............... 102.5 102.5
(a) Reflects the elimination of the loss on retirement of debt.
A8