LIVONIA, Mich. (AP) — Auto parts maker TRW Automotive Holdings Corp. said Tuesday its first-quarter profit dropped 27 percent, pulled down by one-time charges and the effects of a higher tax rate.
The Livonia, Mich.-based company, which makes airbags, seatbelts, steering and braking systems, and other automotive parts, earned $206 million, or $1.59 per share, down from $281 million, or $2.13 per share, in the same quarter last year.
Excluding one-time debt-retirement and restructuring charges, along with a gain related to an acquisition, the company said it posted an adjusted profit of $1.62 per share for the recent quarter.
Sales rose 2.4 percent to $4.21 billion from $4.11 billion, as North American vehicle production continued to increase and boost demand for its products, but was partially offset by lower European production.
The results beat Wall Street predictions. Analysts, on average, expected a profit of $1.60 per share on $4.16 billion in sales, according to a FactSet poll.
TRW attributed the drop in profit to a higher effective tax rate, which sent its income tax expenses up 66 percent to $93 million, and an increase in costs related to future growth initiatives.
Based on current vehicle production predictions, TRW said it expects to post second-quarter sales of about $4.2 billion and full-year sales of between $16.3 billion and $16.6 billion.
Analysts polled by FactSet expect second-quarter sales of $4.29 billion and 2012 sales of $16.55 billion.
Shares of TRW fell 40 cents to $45.31 Tuesday morning.