TRW Automotive Holdings Corp. (TRW) recently unveiled its next-generation adaptive frontal passenger airbags, which are expected to be launched by 2013. These airbags have updated features, which will enable efficient adjustment of both the airbag pressure and size.
The adaptive occupancy technologies used in the product include high efficient dual stage inflators that are based on various factors including deployment force, the bag geometry, stiffness and shape. All these have been combined together by TRW engineers to increase protection against crash and to enhance the safety of occupants irrespective of their size, the speed and impact of the crash, occupant position, belted, unbelted and others.
TRW Automotive is a leading manufacturer of advanced technology products and services for the automotive markets. Headquartered in Michigan, U.S., the company operates in 27 countries through its subsidiaries. These operations primarily involve the design, manufacture and sale of active and passive safety related products.
The company’s Occupancy Safety Systems division possesses huge growth potential going forward. The segment’s expansion largely depends on the enforcement of regulation introduced by the U.S. National Highway Traffic Safety Administration, which will require all passenger cars to install side-impact safety devices from 2013 onwards. The law is expected to boost the company’s sales significantly.
In the last reported quarter, TRW Automotive witnessed a 6% fall in profit to $177 million or $1.37 per share (excluding debt retirement charges) from $189 million or $1.47 per share (excluding debt retirement charges and favorable tax benefits) in the prior-year quarter.
The decline in profit was attributable to increased raw material costs, higher legal fees and planned increases in costs to support the company’s future growth.
However, revenues in the quarter grew 14% to $3.9 billion on higher vehicle production volumes, strong demand for the company’s active and passive safety products as well as a positive impact of currency movements.
We have reiterated our “Neutral” recommendation on the shares of TRW over the long term.
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