TRW to a Take Loss as It Restates Results
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Inc. restated its third-quarter results to a loss from a profit, after writing off the value of its investment in failed satellite venture Astrolink International.
TRW said it took a $157-million write-off and will not invest further in the venture, which is controlled by Lockheed Martin Corp. TRW revised its previously announced third-quarter results to a loss of $80 million, or 65 cents a share, from net income of $77 million, or 61 cents.
Meanwhile, Lockheed said in a regulatory filing that it expects to write down the value of its $400-million investment in Astrolink, another sign that the $3.7-billion satellite communications project may fold.
ViaSat Inc., a Carlsbad, Calif.-based manufacturer of satellite telecommunications and wireless signal-processing equipment, also announced that Astrolink had terminated two contracts.
Cleveland-based TRW holds a 19% stake in Astrolink; Lockheed owns 31%.
If Lockheed writes off the full investment, the expense would reduce earnings by about $275 million after taxes, the Bethesda, Md.-based company said.
A company spokesman said the write-down would be taken only if Astrolink failed to get more financing.
TRW stock rose 77 cents to $37.45, while Lockheed fell $1.14 to $47.85, both on the New York Stock Exchange.
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