“StockWatchIndex on ”

TRW REPORTS THIRD QUARTER 2013 FINANCIAL RESULTS

INCREASES ITS SHARE REPURCHASE AUTHORIZATION TO $2 BILLION

LIVONIA, Mich., Oct. 29, 2013 /PRNewswire/ — TRW Automotive Holdings Corp. (NYSE: TRW), the global leader in active and passive safety systems, today reported third quarter 2013 financial results with sales of $4.2 billion, an increase of 6% compared to the prior year period.  The Company reported GAAP third quarter net earnings of $197 million or $1.60 per diluted share, which compares to net earnings of $163 million or $1.28 per diluted share in the prior year period.

Excluding special items from the Company’s current and prior year quarterly results, the Company reported third quarter 2013 net earnings of $187 million, or $1.52 per diluted share, which compares to net earnings of $157 million or $1.24 per diluted share in the prior year period.

In addition to the solid financial results achieved during the third quarter and first nine months of the year, the Company’s Board of Directors authorized an additional $1 billion in share repurchases, bringing the total repurchase authorization to $2 billion.  The available remaining repurchase authorization of $1.47 billion, which is expected to be executed over three years, reflects approximately 16% of TRW’s present market capitalization.  Through the first nine months of 2013, the Company used $460 million of cash to repurchase approximately 6.5 million shares of its common stock.

“TRW had another quarter of strong operating performance and continues to build on its positive momentum,” said John C. Plant, Chairman and Chief Executive Officer.  “Increasing the size of our share repurchase program reflects our confidence in sustaining positive earnings and cash flow from our operations and further demonstrates our commitment to maximizing shareholder returns over time.”

Third Quarter 2013 The Company reported third quarter 2013 sales of $4.2 billion, an increase of $247 million from the prior year period.  The higher level of sales was driven by increasing demand for TRW’s innovative technologies, higher vehicle production volumes in North America and China and the positive impact of currency movements between the two periods.

The Company’s third quarter 2013 operating income was $289 million, compared with $262 million in the 2012 period.  The 2013 and 2012 periods included restructuring charges of $5 million and $3 million, respectively.  Excluding these charges, the $29 million year-to-year increase in profit and corresponding improvement in margin was primarily driven by the higher level of sales between the two quarters, partially offset by planned increases in costs to support future growth.
Net interest expense for the third quarter of 2013 totaled $33 million, which compares to $26 million in the 2012 period.  In addition, a net loss on retirement of debt totaling $1 million was recognized in the third quarter of 2012.

Tax expense for the third quarter of 2013 was $62 million, which compares to a tax expense of $68 million in the prior year period.  Both the 2013 and 2012 periods included net tax benefits of $15 million and $10 million, respectively, primarily related to the reduction in corporate income tax rates in the United Kingdom.

The Company reported 2013 third quarter GAAP net earnings of $197 million, or $1.60 per diluted share, which compares to GAAP net earnings of $163 million, or $1.28 per diluted share in the 2012 period.

Excluding special items, the Company reported third quarter 2013 net earnings of $187 million, or $1.52 per diluted share, which compares to net earnings of $157 million or $1.24 per diluted share in the 2012 period.
Earnings before interest, taxes, depreciation and amortization and special items (“adjusted EBITDA”) were $403 million in the third quarter of 2013, compared to the prior year level of $361 million.  See page A6 for a description of the special items excluded in calculating adjusted EBITDA.

Year-to-Date 2013, For the nine-month period ended September 27, 2013, the Company reported sales of $12.9 billion, an increase of $527 million compared to prior year sales.  The increase in sales resulted primarily from a higher level of demand for TRW’s broad array of active and passive safety products and improved vehicle production volumes in North America and China, partially offset by lower vehicle production volumes in Europe.

For the year-to-date period, the Company reported operating income of $927 million, which compares to $930 million of operating income in the prior year period.  Both the 2013 and 2012 periods included restructuring charges totaling$43 million and $7 million, respectively.  Excluding these items from both periods, the Company reported operating income of $970 million in the 2013 period, which compares to $937 million in the prior year.  The positive contribution from the higher level of sales was partially offset by several factors including planned increases in costs to support future growth.

Net interest expense for the first nine months of 2013 totaled $97 million, which compares to $82 million in the prior year period.  In addition, the current year-to-date period included a net loss on retirement of debt totaling $5 million, compared with the first nine months of 2012, which recognized a net loss on retirement of debt totaling $6 million.

Year-to-date tax expense was $221 million, which compares to $253 million in the prior year.  Excluding the tax benefits related to the special items previously noted in both periods, tax expense was $248 million and $266 million in the first nine months of 2013 and 2012, respectively.

The Company reported year-to-date 2013 GAAP net earnings of $607 million, or $4.88 per diluted share, which compares to GAAP net earnings of $589 million, or $4.58 per diluted share in the prior year period. Excluding special items, the Company reported 2013 year-to-date net earnings of $628 million, or $5.05 per diluted share, which compares to net earnings of $589 million or $4.58 per diluted share in the 2012 period.

Adjusted EBITDA totaled $1,291 million for the first nine months of 2013, compared to $1,244 million in the prior year period.  See page A6 for a description of the special items excluded in calculating adjusted EBITDA.

Cash Flow and Capital Structure Third quarter 2013 net cash flow provided by operating activities totaled $147 million, which compares to $156 million in the third quarter of 2012.  Capital expenditures were $140 million in the current quarter compared to $125 million last year.  Third quarter free cash flow (cash flow from operating activities less capital expenditures) was $7 million, compared to $31 million in the prior year quarter.

During the third quarter of 2013, TRW used approximately $260 million of cash to repurchase over 3.5 million shares of its common stock.

For the nine-month period, ended September 27, 2013, net cash provided by operating activities was $240 million, which compares to $245 million in the prior year period.  Year-to-date capital expenditures were $411 million compared to $325 million in 2012.  Free cash flow was an outflow of $171 million, compared to an outflow of $80 million for the same period last year.  The unfavorable outcome compared to last year resulted primarily from higher working capital requirements and planned increases in capital expenditures to support future growth.

During the first nine months of 2013, TRW used approximately $460 million of cash to repurchase approximately 6.5 million shares of its common stock and $96 million of cash to retire $91 million of face value senior notes.

As of September 27, 2013, the Company had $1,891 million of debt and $1,013 million of cash and cash equivalents, resulting in net debt (defined as debt less cash and cash equivalents) of $878 million.

2013 Outlook TRW expects full year industry production volumes to total 16.2 million units in North America and 18.9 million units in Europe.  In addition, the Company continues to expect expansion in vehicle production volumes in China and rest of world regions.  Based on these production levels, the Company’s performance through the first nine months of 2013 and expectations for foreign currency exchange rates, full year 2013 sales are expected to be approximately $17.1 billion.

“Increased demand for TRW’s innovative products combined with the Company’s operating performance achieved through September will support another strong year for TRW,” said Mr. Plant.  “We remain focused on a good conclusion to the year and building on the Company’s positive momentum to further enhance value to our shareholders.”

Third Quarter 2013 Conference Call The Company will host its third quarter conference call at 8:30 a.m. (Eastern time) today, Tuesday, October 29^th, to discuss financial results and other related matters. To participate in the conference call, please dial (877) 852-7898 for U.S. locations, or (706) 634-1095 for international locations.

An audio replay of the conference call will be available approximately two hours after the conclusion of the call and will be accessible afterward for approximately two weeks. To access the replay, U.S. locations should dial (855) 859-2056, and locations outside the U.S. should dial (404) 537-3406. The replay code is 71376522. A live audio webcast and replay of the conference call will also be available on the Company’s website at www.trw.com.

Reconciliation to GAAP In addition to GAAP results included within this press release, the Company has provided certain information which is not calculated according to GAAP (“non-GAAP”), such as net earnings, operating income, tax expense and diluted earnings per share each excluding special items; adjusted EBITDA; and free cash flow. Management uses these non-GAAP measures to evaluate the operating performance of the Company and its business segments and to forecast future periods. Management believes that investors will likewise find these non-GAAP measures useful in evaluating such performance. Such measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry.

Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For a reconciliation of non-GAAP measures to the most comparable GAAP financial measure and for share amounts used to derive earnings per share, please see the financial schedules that accompany this release.

About TRW With 2012 sales of $16.4 billion, TRW Automotive ranks among the world’s leading automotive suppliers. Headquartered in Livonia, Michigan, USA, the Company, through its subsidiaries, operates in 25 countries and employs approximately 65,000 people worldwide. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. All references to “TRW Automotive”, “TRW” or the “Company” in this press release refer to TRW Automotive Holdings Corp. and its subsidiaries, unless otherwise indicated. TRW Automotive news is available on the internet atwww.trw.com.

Forward-Looking Statements This release contains statements that are not statements of historical fact, but instead are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We caution readers not to place undue reliance on these statements, which speak only as of the date hereof. All forward-looking statements are subject to numerous assumptions, risks and uncertainties which could cause our actual results to differ materially from those suggested by the forward-looking statements, including those set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (our “Form 10-K”) and our Reports on Form 10-Q for the fiscal quarters ended March 29, 2013 and June 28, 2013, such as: any developments related to antitrust investigations adversely affecting our financial condition, results, cash flows or reputation; the loss of any of our largest customers or the loss of a significant amount of their business materially adversely affecting us; economic conditions adversely affecting our business, results or the viability of our supply base; the unsuccessful implementation of our current expansion efforts adversely impacting our business or results; any shortage of supplies causing a production disruption for any customers or us; strengthening of the U.S. dollar and other foreign currency exchange rate fluctuations impacting our results; risks associated with non-U.S. operations, including economic and political uncertainty in some regions, adversely affecting our business, results or financial condition; any inability to protect our intellectual property rights adversely affecting our business or our competitive position; commodity inflationary pressures adversely affecting our profitability or supply base; pricing pressures from our customers adversely affecting our profitability; costs of product liability, warranty and recall claims and efforts by customers to adversely alter contract terms and conditions concerning warranty and recall participation; costs or adverse effects on our business, reputation or results from governmental regulations; costs or liabilities relating to environmental, health and safety regulations adversely affecting our results; any increase in the expense of our pension and other postretirement benefits or the funding requirements of our pension plans reducing our profitability; work stoppages or other labor issues at our facilities or at the facilities of our customers or those in our supply chain adversely affecting our business, results or financial condition; any disruption in our information technology systems adversely impacting our business and operations; any impairment of a significant amount of our goodwill or other intangible assets adversely affecting our financial condition; and other risks and uncertainties set forth in our Form 10-K and in our other filings with the U.S. Securities and Exchange Commission. We do not undertake any obligation to release publicly any update or revision to any of the forward-looking statements.

A1

TRW Automotive Holdings Corp.

Index of Condensed Consolidated Financial Information

The accompanying unaudited condensed consolidated financial information and reconciliation schedules should be read in conjunction with the TRW Automotive Holdings Corp. Annual Report on Form 10-K for the year ended December 31, 2012, Quarterly Reports on Form 10-Q for the periods ended March 29, 2013 and June 28, 2013, and the August 1, 2013 Current Report on Form 8-K, each of which was filed with the United States Securities and Exchange Commission.

A6

TRW Automotive Holdings Corp.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

EBITDA, Adjusted EBITDA and free cash flow are not recognized terms under GAAP and do not purport to be alternatives to the most comparable GAAP amounts.  Further, since not all companies use identical calculations, our definition and presentation of these measures may not be comparable to similarly titled measures reported by other companies.   EBITDA and Adjusted EBITDA EBITDA as calculated below is a measure used by management to evaluate the operating performance of the Company and its business segments and to forecast future periods.  Adjusted EBITDA is defined as EBITDA excluding restructuring charges, asset impairments and other significant special items.  Management uses Adjusted EBITDA to evaluate the performance of ongoing operations separate from items that may have a disproportionate impact in any particular period.  EBITDA and Adjusted EBITDA are frequently used by securities analysts, institutional investors and other interested parties in the evaluation of companies in our industry.   EBITDA and Adjusted EBITDA do not purport to be alternatives to net earnings as an indicator of operating performance, nor to cash flows from operating activities as a measure of liquidity.  Additionally, neither is intended to be a measure of free cash flow for management’s discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments and debt service requirements.  

Free Cash Flow Free cash flow represents net cash provided by operating activities less capital expenditures, and is used by management in analyzing the Company’s ability to service and repay its debt and to forecast future periods.  However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures.  

SOURCE TRW Automotive Holdings Corp.

For further information: Investor Relations Contact – Mark Oswald, (734) 855-3140, or Media Contact – John Wilkerson, (734) 855-3864

StockWatchIndex, LLC 4712 Admiralty Way #173 Marina del Rey, CA 90292 www.stockwatchindex.com info@stockwatchindex.com twitter.com/stockwatchindex facebook.com/stockwatchindex