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LIVONIA — Shares of TRW Automotive Holdings Corp. surged Tuesday after the company reported a second-quarter loss that was narrower than analysts' expectations.
The auto supplier which provides safety systems said it lost $11 million, or 11 cents per share, in the quarter, compared with a profit a $127 million, or $1.24 per share, in the same quarter a year ago.
Shares rose 11.8 percent or $2.08 to $19.65 in midday trading.
Analysts surveyed by Thomson Reuters estimated a per share loss of 83 cents on revenue of $2.56 billion.
Revenue fell 38.6 percent, to $2.73 billion from $4.45 billion for the same quarter in 2008.
Excluding special items, which included impairment charges and a $1 million gain on retirement of debt, TRW earned $8 million, or 8 cents per share, in the quarter, compared with $148 million or $1.44 a share, in the year ago quarter.
TRW was able to reduce spending in the quarter. Free cash flow was $14 million in the quarter, compared with $80 million in the same quarter in 2008.
During the quarter, TRW reached an agreement with its secured lenders to access more than $1 billion in liquidity to keep its loan covenants through the auto industry downturn.
"The restructuring and cost containment actions implemented over the previous three quarters had a significant positive impact on TRW's second-quarter results and helped offset the effects of the reduced vehicle production levels," said John C. Plant, TRW's president and CEO in a written statement. "Finalizing the agreement with our lenders to protect our liquidity, in addition to our cost containment actions, should allow us to manage through the downturn and positions the company for continued success as a leading supplier to the world's car manufacturers."
