TRW Profit to Fall Short
<i> From Bloomberg News</i>
CLEVELAND — TRW Inc. warned Wednesday that its profit would be below analysts’ estimates for the first quarter because of delayed contracts in its space and defense business and shrinking margins in its automotive business.
TRW expects to earn 83 cents a share, below the $1 average estimate of analysts surveyed by First Call Corp. Delays in restructuring its automotive unit have narrowed margins, the company said.
The warning comes as TRW is about to complete its biggest acquisition ever. It agreed in January to buy LucasVarity, which makes auto brakes, for $6.6 billion in cash. TRW’s auto unit provided about 60% of its 1998 revenue of $11.9 billion.
TRW shares fell $1.06 to close at $41.94 on the NYSE.
