TRW which provides advanced-technology products and services for the automotive, aerospace, and systems markets, said it has agreed to sell its Aeronautical Systems business (formerly Lucas Aerospace) for $1.5 billion in cash to Goodrich Corp.
After the sale, TRW's operating earnings per share from continuing operations in the second quarter of 2002 are expected to be $0.98 to $1, excluding unusual items.
The sale of TRW's Aeronautical Systems business is subject to customary US and European regulatory approvals, and is expected to close by the early fourth quarter of 2002.
Proceeds will be used to reduce debt.
TRW said the sale is part of a strategy to enhance shareholder value. It is exploring other strategic alternatives, and is in the process of sharing confidential information with several interested parties.
TRW said expects to update its guidance for the year at the time of its second quarter earnings release.
AFP