TRW Automotive Holdings Corp. (TRW) plans to expand its electrically powered steering systems manufacturing facility in Poland in order to meet growing demand for electronic steering systems across the world. The expansion involves an additional manufacturing space of 9,000 square meters, which will be established in Bielsko Biala, close to the existing site in Czechowice-Dziedzice.
The expanded facility will start its operations in the first quarter of 2012. It will create 250 jobs initially.
Apart from Bielsko Biala, the company has plants in Czestochowa, Gliwice and Pruszkow in Poland. It employs 6,000 people in the country.
TRW has been continuously improving and expanding its electrically powered steering operations in order to capture the emerging markets by making it more affordable. The company expects the demand for electronic steering systems will continue to grow. It believes about 80% of vehicles will be equipped with them by 2015.
The Zacks #3 Rank (Hold) company reported a profit of $292 million or $2.21 per share (excluding special items) in the first quarter of 2011, beating the Zacks Consensus Estimate by an impressive margin of 42 cents per share. The profits improved 40% from $209 million and 34% from or $1.65 per share (excluding special items) in the first quarter of 2010, driven by higher sales volume.
Revenues in the quarter escalated 15% to $4.11 billion, up from the Zacks Consensus Estimate of $3.93 billion. The increase in sales was attributable to higher global vehicle production volumes and rising demand for TRW's active and passive safety products.
TRW anticipates full year production of 13.0 million units in North America and 19.3 million units in Europe. The company assumed a loss in light vehicle production in the second quarter due to supply chain disruptions resulting from the earthquake and tsunami in Japan.
However, production in China and the rest of world regions is expected to remain relatively stable throughout the year as near-term production disruptions are expected to have a lesser impact on those regions.
Based on the production level guidance and the company's revised expectations for foreign currency exchange rates, sales are expected to range between $15.7 billion and $16.0 billion for full year 2011, including sales of $3.9 billion for the second quarter of 2011.
Meanwhile, TRW’s competitor, Autoliv Inc. (ALV), posted a 43% rise in profit to $181.5 million in the first quarter of 2011 from $126.5 million in the same quarter of 2010. On earnings per share basis, the company recorded a profit of $1.93, up 39% from $1.39 a year ago and exceeding the Zacks Consensus Estimate by 19 cents per share.
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