TRW Automotive Turns 3Q Profit On Lower Costs

LIVONIA, Mich. (AP) — TRW Automotive Holdings Corp. posted a third-quarter profit of $56 million on Wednesday, as cost cuts helped the auto parts supplier recover from a loss a year earlier. It also raised its full-year sales forecast.

Its shares rose $1.27, or 7.5 percent, to close at $18.25.

The maker of automotive safety systems attributed the improved third-quarter results to cost cutting efforts, which helped offset falling sales. TRW and other auto parts suppliers have been forced to slash costs as automakers have cut production over the last year, though the company said that trend has begun to reverse.

"The benefits achieved from our restructuring and cost containment actions combined with increasing vehicle production schedules had a significant positive impact on our third quarter results," John C. Plant, President and CEO, said in a statement.

The company said its profit for the quarter ended Oct. 2 came to 50 cents per share, well ahead of Wall Street's expectations. The company lost $54 million, or 53 cents per share, in the same period last year.