TRW Announces Second Quarter 2000 Results; Net Earnings Increase 9 Percent Over Second Quarter 1999.Business Editors CLEVELAND--(BUSINESS WIRE)--July 26, 2000 TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc Inc. (NYSE NYSE See: New York Stock Exchange :TRW)
Financial Highlights Second Quarter
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2000 1999
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-- Sales $4.5 billion $4.8 billion
-- Excluding Unusual Items
- Net Earnings $166.9 million $153.5 million
- Diluted Earnings Per Share $1.33 per share $1.25 per share
-- Including Unusual Items
- Net Earnings $199.5 million $139.8 million
- Diluted Earnings Per Share $1.59 per share $1.14 per share
-- Net Debt to Total Capital 68.2 percent 83.7 percent
TRW Inc. (NYSE:TRW) today reported that for the second quarter ended June June: see month. 30, 2000, net earnings excluding unusual items increased 9 percent to a record $166.9 million from $153.5 million last year. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, the related earnings per share increased 6 percent to a record $1.33 from $1.25 per share a year ago. Second quarter 2000 sales were $4.5 billion, compared with $4.8 billion in the second quarter of 1999. Sales for the second quarter of 2000 were comparable to the prior year's level, adjusted for businesses divested subsequent to the second quarter of 1999, primarily Lucas Lucas (l  `kəs), variant of Luke. Diesel Systems.Commenting on the company's results, Joseph T. Gorman Joseph T. Gorman is on the Board of Directors of Alcoa. Principal occupation: Chairman and Chief Executive Officer of Moxahela Enterprises, LLC, a venture capital firm, since 2001. Recent business experience: Mr. Gorman retired as Chairman of TRW Inc. , TRW chairman and chief executive officer, said, "I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in extremely pleased with our company's performance in the second quarter, especially in light of the business environment in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , higher interest rates, and the strong U.S. dollar. Overall, revenue and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of in the quarter were reduced by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $140 million and $0.09 per share, respectively, due primarily to the dollar's strength. Absent this effect, our earnings per share, excluding unusual items, would have improved 14 percent. "I continue to be encouraged by the strong cash flow generation and the progress we have made to reduce debt. In the first half of the year, we reduced net debt by approximately $1.5 billion, which contributed to a reduction in interest expense of $14.5 million in the second quarter. Combined with the $1.0 billion of net debt reduction achieved in 1999 since the acquisition of LucasVarity LucasVarity plc was a UK motor parts manufacturer, created by a merger of the British Lucas Industries plc and the North American Varity Corporation in August 1996. Foundation At the time of the merger LucasVarity announced plans for a £65 million pound savings programme. , we have reached our $2.5 billion debt reduction goal six months ahead of schedule. I have now challenged our businesses to achieve an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. $300 million of debt reduction for a total of $2.8 billion by the end of this year," Gorman Gorman may refer to: People with the surname Gorman
Including unusual items, net earnings in the second quarter of 2000 were $199.5 million, or $1.59 per share, compared with $139.8 million, or $1.14 per share, in 1999. In the second quarter of 2000, unusual items resulted in net earnings of $32.6 million, or $0.26 per share. After-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gains consisted of $27.9 million from the sale of RF Micro Devices RF Micro Devices (NASDAQ: RFMD) is a manufacturer of integrated circuits, founded in Greensboro, NC, in 1991 by William J. Pratt, Powell T. Seymour and Jerry D. Neal.[1]. (RFMD RFMD RF Micro Devices (NASDAQ) RFMD Rotary Fluid Management Device ) stock; $22.5 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the merger of TRW Milliwave Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , with Endgate Corporation to form Endwave Corporation, of which TRW currently owns 53 percent; and $14.8 million on the sale of TRW's interest in Paracel Inc. for shares in Celera Genomics ge·no·mics n. The study of all of the nucleotide sequences, including structural genes, regulatory sequences, and noncoding DNA segments, in the chromosomes of an organism. Corporation. These gains were partially offset by $9.6 million of automotive restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and $23.0 million of unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on foreign currency hedges Currency hedge Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). . Second quarter 1999 net earnings included unusual items that resulted in after-tax charges of $13.7 million, or $0.11 per share. These charges included $39.5 million for automotive restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions and $25.9 million for expenses related to the LucasVarity acquisition, partially offset by $51.7 million of gains primarily from the sale of RFMD stock. Net earnings before unusual items for the six-month period ended June 30, 2000, improved 24 percent to $319.0 million, compared with $257.7 million in 1999. The related earnings per share on a diluted basis increased 21 percent to $2.55 from $2.10 a year ago. Sales for the first six months of 2000 were $9.0 billion, an increase of 15 percent, compared with $7.9 billion of sales in the first half of 1999. The increase in both sales and earnings before unusual items resulted primarily from the acquisition of LucasVarity. "We continue to make strides to lower our cost base companywide. One contributing initiative is our recently announced strategic alliance with Satyam Computer Services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. , Ltd., based in Hyderabad Hyderabad, former state and modern city, India Hyderabad (hī`dərəbăd'), former princely state, S central India. The former princedom of Hyderabad is now divided among the states of Karnataka, Maharashtra, and Andhra Pradesh. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . This newly formed joint venture will provide TRW's automotive, aerospace, and information systems businesses with world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. information systems and engineering services. Over five years, TRW intends to channel approximately $200 million of business through the new company," Gorman said. "The commercialization of the TRW technology bank continues well into its second year," said Gorman. "Our previously announced transaction relating to the formation of Endwave was completed in the second quarter. Early in the quarter, we formed a strategic partnership with Wireless, Inc., to develop and market high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. wireless Internet-access equipment. Our most recent partnership, with SpaceBridge Networks Corporation to develop broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). network access products, brings to 11 the number of ventures now under way." Automotive Operations Second quarter sales in TRW's automotive business declined 12 percent to $2.9 billion, compared with $3.3 billion in the second quarter of 1999. This was due primarily to the disposal of several businesses, including the Lucas Diesel Systems business, which was sold in January January: see month. of 2000, and by the effect of the strong U.S. dollar. Adjusting for these factors, second quarter sales increased 2 percent, as compared with the prior year. Higher volume resulting from increased automotive production was partially offset by the effect of price reductions. Total automotive profit before unusual items for the second quarter of 2000 increased to $241.1 million, compared with $238.2 million in the second quarter of 1999. Automotive profit improved 9 percent in the second quarter, excluding the profit related to the divested businesses and the negative effect of the strong U.S. dollar. This improvement was primarily due to improved operational efficiencies, benefits from the company's cost-reduction programs, and an increase in volume, partially offset by the effect of continuing price reductions. "Our automotive operations had a solid second quarter, reporting an 8.3 percent margin, compared with 7.2 percent last year," David M. Cote David M. Cote is chairman and CEO of Honeywell. He was first elected president, CEO and a member of the Board of Honeywell in February 2002, and became chairman of the Board of Directors on July 1 2002. , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said. "Clearly, this margin improvement is evidence of operational efficiencies, improved production scheduling, and on-time delivery. In addition, close management of capital and a sharp focus on operating working capital have contributed to strong cash flow. "During the quarter, TRW expanded its global brake manufacturing capability with a new facility in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and announced plans for one in Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, ," Cote said. "The plant in Santa Rosa Santa Rosa, city, Argentina Santa Rosa, city (1991 pop. 80,629), capital of La Pampa prov., central Argentina. It is a modern city and road junction surrounded by a rich agricultural and cattle-raising area. Jauegui, Mexico, will supply seven automakers serving Mexico and other markets and will also serve as the company's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Center of Excellence for the production of actuation ac·tu·ate tr.v. ac·tu·at·ed, ac·tu·at·ing, ac·tu·ates 1. To put into motion or action; activate: electrical relays that actuate the elevator's movements. 2. systems. When completed in early 2001, the new braking actuation facility in Gliwice Gliwice (glĭvē`tsĕ), Ger. Gleiwitz, city (1993 est. pop. 216,000), Śląskie prov., SW Poland. A coal-mining and steel-making center of the Katowice region, it also produces machinery and chemicals. , Poland, will be TRW's fourth manufacturing site in that country." Aerospace and Information Systems In TRW's aerospace and information systems business, second quarter sales, driven by organic growth, increased 6 percent to $1.6 billion, compared with $1.5 billion in the second quarter of 1999. This growth was driven by increased sales to the civil federal marketplace specifically related to the U.S. Census census, periodic official count of the number of persons and their condition and of the resources of a country. In ancient times, among the Jews and Romans, such enumeration was mainly for taxation and conscription purposes. program, growth in the company's missile defense systems Noun 1. missile defense system - naval weaponry providing a defense system missile defence system naval weaponry - weaponry for warships business and increased sales in space-related programs, including Astrolink. Total aerospace and information systems second quarter profit before unusual items was $141.9 million, which is comparable to the $141.3 million reported in the second quarter of 1999. Second quarter 2000 profit margin was 9.0 percent, compared with 9.5 percent in 1999. The decline in margin was driven primarily by the change in mix of major programs in the space and electronics business from maturing to early-phase programs, as profit levels are typically higher in the later years of space-related programs. This effect was offset by improved profitability in the aeronautical aer·o·nau·tic also aer·o·nau·ti·cal adj. Of or relating to aeronautics. aer  o·nau systems business due to operational
improvement programs."During the quarter, TRW added to its impressive program performance record," Cote said. "In a watershed watershed, elevation or divide separating the catchment area, or drainage basin, of one river system or group of river systems from another system or group of systems. The term is also often used synonymously with drainage basin. event for defense systems, TRW, along with the U.S. Army and the Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. Ministry of Defense, demonstrated for the first time that an integrated laser weapon system can intercept intercept in mathematical terms the points at which a curve cuts the two axes of a graph. an artillery artillery, originally meant any large weaponry (including such ancient engines of war as catapults and battering rams) or war material, but later applied only to heavy firearms as opposed to small arms. rocket. The company also continued its modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, of the Securities and Exchange Commission's EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. system, completing upgrades that enable companies to use the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the to transmit To send data over a communications line. See transfer. filings. TRW also reached a milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. on its Census 2000 data capture program, processing the 100 millionth form. "With an emphasis on leading-edge technology, we added several impressive new programs," Cote said. "TRW joined with Lockheed Martin Space Systems Lockheed Martin Space Systems is one of the 4 major business divisions of Lockheed Martin. It is headquartered in Denver, Colorado. From a rich history of major companies Lockheed Martin has brought them together to offer design, integration, and production of: tr.v. dig·i·tized, dig·i·tiz·ing, dig·i·tiz·es To put (data, for example) into digital form. dig business with the U.S. Army by signing two significant low-rate initial production contracts in excess of $94 million for battlefield computers and combat identification equipment. The Air Force also awarded TRW a contract valued up to $285 million for its Distributed Mission Training program. "In addition, we are taking a lead in industry efforts to e-transform our businesses," Cote said. "The UK Council for Electronic Business cited our new www.trwaerospares.com Web initiative for being that industry's most significant implementation of e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. techniques. The Web page links directly to the company's spares logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. system, providing customers access to all TRW commercial aircraft spares -- which include 166,000 part numbers -- 24 hours a day, anywhere in the world." TRW provides advanced-technology products and services for the automotive, aerospace, and information systems markets. The company's news releases are available through TRW's corporate Web site, www.trw.com, or at the Business Wire Web site, www.businesswire.com/trw/. Statements that are not statements of historical fact may be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Important factors that could cause TRW's actual results to differ materially from the forward-looking statements contained in this release include the ability to continue technical innovation and the development of and demand for new products and contract awards; the ability to effectively implement the company automotive restructuring program and improve automotive margins; the ability to develop and market products and services for customers outside of the traditional aerospace and information systems markets; the ability to reduce debt; and the ability to design and develop e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. initiatives for business systems and processes. Additional factors can be found in Item 7, "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial -- Forward-Looking Statements," in the company's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . TRW undertakes no obligation to update any forward-looking statement.
TRW STATISTICAL SUMMARY (UNAUDITED)
(Dollar Amounts in Millions Except for Per Share Data)
SECOND QUARTER 2000
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Margin Unusual Margin
Operations % Items Total %
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Sales
Occupant Safety Systems $ 727.7 $ 727.7
Chassis Systems 1,510.8 1,510.8
Automotive Electronics 437.3 437.3
Other Automotive 217.2 217.2
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Total Automotive 2,893.0 2,893.0
Space & Electronics 467.0 467.0
Systems & Information
Technology 837.5 837.5
Aeronautical Systems 277.9 277.9
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Total Aerospace
& Information Systems 1,582.4 1,582.4
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Sales $4,475.4 $4,475.4
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Profit Before Taxes
Occupant Safety Systems $ 60.1 8.3% $ (0.7)$ 59.4 8.2%
Chassis Systems 119.1 7.9% (7.1) 112.0 7.4%
Automotive Electronics 36.0 8.2% (3.4) 32.6 7.5%
Other Automotive 25.9 11.9% (2.9) 23.0 10.6%
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Total Automotive 241.1 8.3% (14.1) 227.0 7.8%
Space & Electronics 48.7 10.4% 94.4 143.1 30.6%
Systems & Information
Technology 54.7 6.5% 22.7 77.4 9.2%
Aeronautical Systems 38.5 13.9% - 38.5 13.9%
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Total Aerospace
& Information Systems 141.9 9.0% 117.1 259.0 16.4%
Profit Before Taxes 383.0 8.6% 103.0 486.0 10.9%
Corporate Expense
and Other (49.9) (35.5) (85.4)
Financing Costs (127.7) - (127.7)
Pension Income 54.0 - 54.0
In-process Research
and Development - (11.7) (11.7)
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Earnings(Loss)
Before Income Taxes $ 259.4 5.8% $ 55.8 $ 315.2 7.0%
Income Taxes 92.5 23.2 115.7
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Net Earnings(Loss) $ 166.9 3.7% $ 32.6 $ 199.5 4.5%
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Diluted earnings
(loss) per share $ 1.33 $ 0.26 $ 1.59
Basic earnings
(loss) per share $ 1.36 $ 0.26 $ 1.62
Dividends paid
per common share $ 0.33
Common stock outstanding 123.9
Shares used in computing
per share amounts
Diluted 125.6
Basic 123.2
TRW STATISTICAL SUMMARY (UNAUDITED)
(Dollar Amounts in Millions Except for Per Share Data)
SECOND QUARTER 1999
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Margin Unusual Margin
Operations % Items Total %
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Sales
Occupant Safety Systems $ 779.0 $ 779.0
Chassis Systems 1,538.2 1,538.2
Automotive Electronics 540.1 540.1
Other Automotive 436.2 436.2
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Total Automotive 3,293.5 3,293.5
Space & Electronics 453.2 453.2
Systems & Information
Technology 756.9 756.9
Aeronautical Systems 281.8 281.8
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Total Aerospace
& Information Systems 1,491.9 1,491.9
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Sales $ 4,785.4 $ 4,785.4
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Profit Before Taxes
Occupant Safety Systems $ 46.6 6.0% $ (6.7)$ 39.9 5.1%
Chassis Systems 133.0 8.6% (63.7) 69.3 4.5%
Automotive Electronics 36.0 6.7% (10.3) 25.7 4.8%
Other Automotive 22.6 5.2% 1.4 24.0 5.5%
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Total Automotive 238.2 7.2% (79.3) 158.9 4.8%
Space & Electronics 61.1 13.5% 78.5 139.6 30.8%
Systems & Information
Technology 50.7 6.7% 1.0 51.7 6.8%
Aeronautical Systems 29.5 10.5% - 29.5 10.5%
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Total Aerospace
& Information Systems 141.3 9.5% 79.5 220.8 14.8%
Profit Before Taxes 379.5 7.9% 0.2 379.7 7.9%
Corporate Expense
and Other (58.1) (7.1) (65.2)
Financing Costs (142.2) (12.8) (155.0)
Pension Income 58.0 - 58.0
In-process Research
and Development - - -
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Earnings(Loss)
Before Income Taxes $ 237.2 5.0% $ (19.7)$ 217.5 4.5%
Income Taxes 83.7 (6.0) 77.7
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Net Earnings(Loss) $ 153.5 3.2% $ (13.7)$ 139.8 2.9%
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Diluted earnings
(loss) per share $ 1.25 $ (0.11)$ 1.14
Basic earnings
(loss) per share $ 1.27 $ (0.11)$ 1.16
Dividends paid
per common share $ 0.33
Common stock outstanding 120.9
Shares used in computing
per share amounts
Diluted 123.2
Basic 120.6
TRW STATISTICAL SUMMARY (UNAUDITED)
(Dollar Amounts in Millions Except for Per Share Data)
SIX MONTHS ENDED 2000
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Margin Unusual Margin
Operations % Items Total %
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Sales
Occupant Safety Systems $ 1,488.2 $ 1,488.2
Chassis Systems 3,038.9 3,038.9
Automotive Electronics 908.8 908.8
Other Automotive 491.9 491.9
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Total Automotive 5,927.8 5,927.8
Space & Electronics 953.0 953.0
Systems & Information
Technology 1,611.3 1,611.3
Aeronautical Systems 548.6 548.6
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Total Aerospace
& Information Systems 3,112.9 3,112.9
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Sales $ 9,040.7 $ 9,040.7
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Profit Before Taxes
Occupant Safety Systems $ 114.7 7.7% $ (41.3)$ 73.4 4.9%
Chassis Systems 241.9 8.0% (51.1) 190.8 6.3%
Automotive Electronics 72.6 8.0% (7.6) 65.0 7.2%
Other Automotive 53.4 10.9% 28.1 81.5 16.6%
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Total Automotive 482.6 8.1% (71.9) 410.7 6.9%
Space & Electronics 101.6 10.7% 268.1 369.7 38.8%
Systems & Information
Technology 101.6 6.3% 22.7 124.3 7.7%
Aeronautical Systems 66.0 12.0% - 66.0 12.0%
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Total Aerospace
& Information Systems 269.2 8.6% 290.8 560.0 18.0%
Profit Before Taxes 751.8 8.3% 218.9 970.7 10.7%
Corporate Expense
and Other (101.3) (47.6) (148.9)
Financing Costs (264.5) (0.7) (265.2)
Pension Income 111.4 - 111.4
In-process Research
and Development - (11.7) (11.7)
----------------------------------------------------------------------
Earnings(Loss)
Before Income Taxes $ 497.4 5.5% $ 158.9 $ 656.3 7.3%
Income Taxes 178.4 69.1 247.5
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Net Earnings(Loss) $ 319.0 3.5% $ 89.8 $ 408.8 4.5%
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----------------------------------------------------------------------
Diluted earnings
(loss) per share $ 2.55 $ 0.72 $ 3.27
Basic earnings
(loss) per share $ 2.60 $ 0.73 $ 3.33
Dividends paid
per common share $ 0.66
Common stock outstanding 123.9
Shares used in computing
per share amounts
Diluted 125.1
Basic 122.8
TRW STATISTICAL SUMMARY (UNAUDITED)
(Dollar Amounts in Millions Except for Per Share Data)
SIX MONTHS ENDED 1999
--------------------------------------------
Margin Unusual Margin
Operations % Items Total %
----------------------------------------------------------------------
Sales
Occupant Safety Systems $ 1,574.2 $ 1,574.2
Chassis Systems 2,152.0 2,152.0
Automotive Electronics 857.4 857.4
Other Automotive 674.5 674.5
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Total Automotive 5,258.1 5,258.1
Space & Electronics 914.4 914.4
Systems & Information
Technology 1,409.9 1,409.9
Aeronautical Systems 299.9 299.9
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Total Aerospace
& Information Systems 2,624.2 2,624.2
----------------------------------------------------------------------
Sales $ 7,882.3 $ 7,882.3
----------------------------------------------------------------------
----------------------------------------------------------------------
Profit Before Taxes
Occupant Safety Systems $ 103.0 6.5% $ (9.8)$ 93.2 5.9%
Chassis Systems 172.4 8.0% (68.4) 104.0 4.8%
Automotive Electronics 59.3 6.9% (11.4) 47.9 5.6%
Other Automotive 49.0 7.3% 0.6 49.6 7.4%
----------------------------------------------------------------------
Total Automotive 383.7 7.3% (89.0) 294.7 5.6%
Space & Electronics 111.0 12.1% 111.6 222.6 24.3%
Systems & Information
Technology 89.5 6.3% (31.5) 58.0 4.1%
Aeronautical Systems 31.6 10.5% - 31.6 10.5%
----------------------------------------------------------------------
Total Aerospace
& Information Systems 232.1 8.8% 80.1 312.2 11.9%
Profit Before Taxes 615.8 7.8% (8.9) 606.9 7.7%
Corporate Expense
and Other (89.0) (57.3) (146.3)
Financing Costs (183.8) (25.0) (208.8)
Pension Income 58.0 - 58.0
In-process Research
and Development - (85.3) (85.3)
----------------------------------------------------------------------
Earnings(Loss)
Before Income Taxes $ 401.0 5.1% $ (176.5)$ 224.5 2.8%
Income Taxes 143.3 (30.2) 113.1
----------------------------------------------------------------------
Net Earnings(Loss) $ 257.7 3.3% $ (146.3)$ 111.4 1.4%
----------------------------------------------------------------------
----------------------------------------------------------------------
Diluted earnings
(loss) per share $ 2.10 $ (1.19)$ 0.91
Basic earnings
(loss) per share $ 2.14 $ (1.22)$ 0.92
Dividends paid
per common share $ 0.66
Common stock outstanding 120.9
Shares used in computing
per share amounts
Diluted 123.0
Basic 120.4
TRW STATISTICAL SUMMARY (UNAUDITED)
(Dollar Amounts in Millions)
SELECTED CASH FLOW ITEMS Six Months Ended
June 30, 2000 June 30, 1999
------------- -------------
Net earnings(loss) $ 409 $ 111
Gains on sale of nonoperating assets (239) (95)
Gain on Endwave merger (55) -
Depreciation and amortization 427 363
Pension income (128) (61)
Deferred income taxes 117 (131)
Operating working capital (66) (66)
Capital expenditures including other
intangibles (312) (356)
Acquisitions, net of cash acquired 21 (6,049)
Net proceeds from divestitures 1,396 91
Net increase(decrease) in debt (1,454) 6,598
Dividends paid (82) (80)
Purchased in-process research and
development 12 85
SUMMARY BALANCE SHEETS
June 30, 2000 December 31, 1999
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ASSETS
Cash and cash equivalents $ 235 $ 228
Accounts receivable 2,634 2,480
Inventories 943 1,039
Net assets of acquired businesses
held for sale - 827
Other current assets 571 625
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Total current assets 4,383 5,199
Property, plant & equipment-net 3,688 3,894
Intangible assets-net 4,315 4,331
Investments in affiliated companies 1,304 1,185
Other notes and accounts receivable 297 257
Prepaid pension cost 2,821 2,876
Other assets 511 524
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Total assets $17,319 $18,266
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LIABILITIES AND SHAREHOLDERS'
INVESTMENT
Short-term debt $ 1,610 $ 2,444
Trade accounts payable 1,711 1,638
Current portion of long-term debt 601 758
Other current liabilities 1,823 1,889
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Total current liabilities 5,745 6,729
Long-term liabilities 2,119 1,991
Long-term debt 4,865 5,369
Deferred income taxes 1,393 1,352
Minority interests in subsidiaries 206 113
Total shareholders' investment 2,991 2,712
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Total liabilities and
shareholders' investment $17,319 $18,266
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