##### 









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549





FORM 10-Q


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|  
|   |  | For the quarterly period ended April 1, 2005                                                
|  
|or
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the transition period
    from           to                                             

Commission File No. 001-31970





TRW Automotive Holdings Corp.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|Delaware                                                           |  | 81-0597059                                 
|(State or other jurisdiction of
    Incorporation or Organization) |  | (I.R.S. Employer
    Identification Number)

12001 Tech Center Drive


Livonia, Michigan 48150


(734) 855-2600


(Address, Including Zip Code, and Telephone Number,
Including


Area Code, of Registrants Principal Executive
Offices)


Securities registered pursuant to Section 12(b) of the
Act:


|                                        |  |                                          
|--------------------------------------- |  | -----------------------------------------
|Title of Each Class                     |  | Name of Each Exchange on Which Registered
|                                        |  |                                          
|Common Stock, $0.01 par value per share |  | New York Stock Exchange                  

Securities registered pursuant to Section 12(g) of the
Act:


None


þ o


o þ












---



##### 












TRW Automotive Holdings Corp.


Index


|                                   |  |                                                                                          |  |      |    | 
|---------------------------------- |  | ---------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                   |  |                                                                                          |  | Page |   
|                                   |  |                                                                                          |  |      |   
|PART I  FINANCIAL
    INFORMATION
|                                  
|Item 1                             |  | CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)                                        |  |      | 1  | 
|Item 2                             |  | MANAGEMENTS DISCUSSION AND ANALYSIS
    OF FINANCIAL CONDITION AND RESULTS OF OPERATION |  |      | 17 | 
|Item 3                             |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES
    ABOUT MARKET RISKS                          |  |      | 31 | 
|Item 4                             |  | CONTROLS AND PROCEDURES                                                                  |  |      | 32 | 
|                                  
|PART II  OTHER
    INFORMATION   
|                                  
|Item 1                             |  | LEGAL PROCEEDINGS                                                                        |  |      | 33 | 
|Item 2                             |  | UNREGISTERED SALES OF EQUITY SECURITIES AND
    USE OF PROCEEDS                          |  |      | 33 | 
|Item 5                             |  | OTHER INFORMATION                                                                        |  |      | 33 | 
|Item 6                             |  | EXHIBITS                                                                                 |  |      | 34 | 

i



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##### 






PART I







|        |                                  
|------- | ---------------------------------
|ITEM 1. | CONSOLIDATED FINANCIAL STATEMENTS

TRW Automotive Holdings Corp.


Consolidated Statements of Operations


(Unaudited)


|                                            |                         |                                |                              |       |                |    |       |      |     |    | 
|------------------------------------------- | ----------------------- | ------------------------------ | ---------------------------- | ----- | -------------- | -- | ----- | ---- | --- | -- | 
|                                            |                         | Three Months Ended             |                             
|                                            |                         |                                |                             
|                                            |                         | April 1, 2005                  |                              |       | March 26, 2004 |   
|                                            |                         |                                |                              |       |                |   
|                                            |                         | (In millions, except per share |                             
|                                            |                         | amounts)                       |                             
|Sales                                       |                         | $                              | 3,225                        |       |                | $  | 2,923 |     
|Cost of sales                               |                         |                                | 2,861                        |       |                |    | 2,599 |     
|                                            |                         |                                |                              |       |                |   
|                                            |                         | Gross profit                   |                              |       | 364            |    |       |      | 324 |   
|Administrative and selling expenses         |                         |                                | 136                          |       |                |    | 124   |     
|Research and development expenses           |                         |                                | 54                           |       |                |    | 37    |     
|Amortization of intangible assets           |                         |                                | 8                            |       |                |    | 9     |     
|Restructuring charges and asset impairments |                         |                                | 8                            |       |                |    | 5     |     
|Other (income) expense  net                |                         |                                | 3                            |       |                |    | (4    | )   
|                                            |                         |                                |                              |       |                |   
|                                            |                         | Operating income               |                              |       | 155            |    |       |      | 153 |   
|Interest expense  net                      |                         |                                | 58                           |       |                |    | 62    |     
|Loss on retirement of debt                  |                         |                                |                             |       |                |    | 47    |     
|Accounts receivable securitization costs    |                         |                                | 1                            |       |                |    | 1     |     
|                                            |                         |                                |                              |       |                |   
|                                            |                         |                                | Earnings before income taxes |       |                | 96 |       |      |     | 43 | 
|Income tax expense                          |                         |                                | 46                           |       |                |    | 41    |     
|                                            |                         |                                |                              |       |                |   
|                                            |                         |                                | Net earnings                 |       | $              | 50 |       |      | $   | 2  | 
|                                            |                         |                                |                              |       |                |   
|Basic earnings per share:                   |                         |                                |                              |       |                |    |       |     
|                                            | Earnings per share      |                                | $                            | 0.51  |                |    | $     | 0.02 |    
|                                            |                         |                                |                              |       |                |   
|                                            | Weighted average shares |                                |                              | 99.0  |                |    |       | 94.3 |    
|                                            |                         |                                |                              |       |                |   
|Diluted earnings per share:                 |                         |                                |                              |       |                |    |       |     
|                                            | Earnings per share      |                                | $                            | 0.50  |                |    | $     | 0.02 |    
|                                            |                         |                                |                              |       |                |   
|                                            | Weighted average shares |                                |                              | 101.0 |                |    |       | 97.8 |    
|                                            |                         |                                |                              |       |                |   



1



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##### 



TRW Automotive Holdings Corp.


Consolidated Balance Sheets


|                                                             |                                          |                                                                     |       |       |                   |  |       |       |        | 
|------------------------------------------------------------ | ---------------------------------------- | ------------------------------------------------------------------- | ----- | ----- | ----------------- |  | ----- | ----- | ------ | 
|                                                             |                                          | As of                                                               |      
|                                                             |                                          |                                                                     |      
|                                                             |                                          | April 1, 2005                                                       |       |       | December 31, 2004 | 
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                             |                                          | (Unaudited)                                                         |       |       |                  
|                                                             |                                          | (Dollars in millions)                                               |      
|Assets                                                      
|Current assets:                                              |                                          |                                                                     |       |       |                   |  |       |      
|                                                             | Cash and cash equivalents                |                                                                     | $     | 435   |                   |  | $     | 790   |       
|                                                             | Marketable securities                    |                                                                     |       | 16    |                   |  |       | 19    |       
|                                                             | Accounts receivable  net                |                                                                     |       | 1,904 |                   |  |       | 1,813 |       
|                                                             | Inventories                              |                                                                     |       | 667   |                   |  |       | 684   |       
|                                                             | Prepaid expenses                         |                                                                     |       | 57    |                   |  |       | 34    |       
|                                                             | Deferred income taxes                    |                                                                     |       | 170   |                   |  |       | 176   |       
|                                                             |                                          |                                                                     |       |       |                   | 
|Total current assets                                         |                                          |                                                                     | 3,249 |       |                   |  | 3,516 |      
|Property, plant and equipment  net                          |                                          |                                                                     | 2,530 |       |                   |  | 2,635 |      
|Goodwill                                                     |                                          |                                                                     | 2,357 |       |                   |  | 2,357 |      
|Intangible assets  net                                      |                                          |                                                                     | 758   |       |                   |  | 765   |      
|Prepaid pension cost                                         |                                          |                                                                     | 201   |       |                   |  | 190   |      
|Deferred income taxes                                        |                                          |                                                                     | 98    |       |                   |  | 91    |      
|Other assets                                                 |                                          |                                                                     | 554   |       |                   |  | 560   |      
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                             |                                          | Total assets                                                        |       | $     | 9,747             |  |       | $     | 10,114 | 
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                            
|Liabilities, Minority Interests and Stockholders
    Equity
|Current liabilities:                                         |                                          |                                                                     |       |       |                   |  |       |      
|                                                             | Short-term debt                          |                                                                     | $     | 38    |                   |  | $     | 40    |       
|                                                             | Current portion of long-term debt        |                                                                     |       | 17    |                   |  |       | 19    |       
|                                                             | Trade accounts payable                   |                                                                     |       | 1,794 |                   |  |       | 1,887 |       
|                                                             | Accrued compensation                     |                                                                     |       | 267   |                   |  |       | 309   |       
|                                                             | Income taxes payable                     |                                                                     |       | 240   |                   |  |       | 233   |       
|                                                             | Other current liabilities                |                                                                     |       | 1,011 |                   |  |       | 992   |       
|                                                             |                                          |                                                                     |       |       |                   | 
|Total current liabilities                                    |                                          |                                                                     | 3,367 |       |                   |  | 3,480 |      
|Long-term debt                                               |                                          |                                                                     | 2,875 |       |                   |  | 3,122 |      
|Post-retirement benefits other than pensions                 |                                          |                                                                     | 953   |       |                   |  | 959   |      
|Pension benefits                                             |                                          |                                                                     | 813   |       |                   |  | 843   |      
|Deferred income taxes                                        |                                          |                                                                     | 267   |       |                   |  | 268   |      
|Long-term liabilities                                        |                                          |                                                                     | 275   |       |                   |  | 272   |      
|                                                             |                                          |                                                                     |       |       |                   | 
|Total liabilities                                            |                                          |                                                                     | 8,550 |       |                   |  | 8,944 |      
|Minority interests                                           |                                          |                                                                     | 60    |       |                   |  | 65    |      
|Commitments and contingencies                                |                                          |                                                                     |       |       |                   |  |       |      
|Stockholders equity:                                        |                                          |                                                                     |       |       |                   |  |       |      
|                                                             | Capital stock                            |                                                                     |       | 1     |                   |  |       | 1     |       
|                                                             | Treasury stock                           |                                                                     |       |      |                   |  |       |      |       
|                                                             | Paid-in-capital                          |                                                                     |       | 1,131 |                   |  |       | 1,131 |       
|                                                             | Accumulated deficit                      |                                                                     |       | (22   | )                 |  |       | (72   | )     
|                                                             | Accumulated other comprehensive earnings |                                                                     |       | 27    |                   |  |       | 45    |       
|                                                             |                                          |                                                                     |       |       |                   | 
|Total stockholders equity                                   |                                          |                                                                     | 1,137 |       |                   |  | 1,105 |      
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                             |                                          | Total liabilities, minority interests, and stockholders
    equity |       | $     | 9,747             |  |       | $     | 10,114 | 
|                                                             |                                          |                                                                     |       |       |                   | 



2



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##### 



TRW Automotive Holdings Corp.


Consolidated Statements of Cash Flows


(Unaudited)


|                                                                                          |                                                                              |                                                     |                                       |      |                |      |        |      |      |      |  
|----------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | --------------------------------------------------- | ------------------------------------- | ---- | -------------- | ---- | ------ | ---- | ---- | ---- | -
|                                                                                          |                                                                              | Three Months Ended                                  |                                      
|                                                                                          |                                                                              |                                                     |                                      
|                                                                                          |                                                                              | April 1, 2005                                       |                                       |      | March 26, 2004 |     
|                                                                                          |                                                                              |                                                     |                                       |      |                |     
|                                                                                          |                                                                              | (Dollars in millions)                               |                                      
|Operating Activities                                                                      |                                                                              |                                                     |                                       |      |                |      |        |     
|Net earnings                                                                              |                                                                              | $                                                   | 50                                    |      |                | $    | 2      |     
|Adjustments to reconcile net earnings to net cash used in
    operating activities:       |                                                                              |                                                     |                                       |      |                |      |        |     
|                                                                                          | Depreciation and amortization                                                |                                                     |                                       | 128  |                |      |        | 123  |     
|                                                                                          | Pension and other post-retirement benefits contributions, net of
    expense |                                                     |                                       | (29  | )              |      |        | (3   | )   
|                                                                                          | Amortization of deferred financing fees                                      |                                                     |                                       | 5    |                |      |        | 2    |     
|                                                                                          | Non-cash portion of loss on retirement of debt                               |                                                     |                                       |     |                |      |        | 17   |     
|                                                                                          | Deferred income taxes                                                        |                                                     |                                       | (2   | )              |      |        |     |     
|                                                                                          | Other  net                                                                  |                                                     |                                       | 6    |                |      |        | 16   |     
|Changes in assets and liabilities, net of effects of businesses
    acquired or divested: |                                                                              |                                                     |                                       |      |                |      |        |     
|                                                                                          | Accounts receivable, net                                                     |                                                     |                                       | (163 | )              |      |        | (524 | )   
|                                                                                          | Inventories                                                                  |                                                     |                                       | (2   | )              |      |        | 17   |     
|                                                                                          | Trade accounts payable                                                       |                                                     |                                       | (45  | )              |      |        | 111  |     
|                                                                                          | Prepaid expense and other assets                                             |                                                     |                                       | (19  | )              |      |        | (9   | )   
|                                                                                          | Other liabilities                                                            |                                                     |                                       | 20   |                |      |        | 39   |     
|                                                                                          |                                                                              |                                                     |                                       |      |                |     
|                                                                                          |                                                                              | Net cash used in operating activities               |                                       |      | (51            | )    |        |      | (209 | )   
|Investing Activities                                                                      |                                                                              |                                                     |                                       |      |                |      |        |     
|Capital expenditures                                                                      |                                                                              |                                                     | (83                                   | )    |                |      | (67    | )   
|Net proceeds from asset sales and divestitures                                            |                                                                              |                                                     |                                      |      |                |      | 107    |     
|Other  net                                                                               |                                                                              |                                                     |                                      |      |                |      | (2     | )   
|                                                                                          |                                                                              |                                                     |                                       |      |                |     
|                                                                                          |                                                                              | Net cash (used in) provided by investing activities |                                       |      | (83            | )    |        |      | 38   |     
|Financing Activities                                                                      |                                                                              |                                                     |                                       |      |                |      |        |     
|Decrease in short-term debt                                                               |                                                                              |                                                     | (1                                    | )    |                |      | (10    | )   
|Proceeds from issuance of long-term debt                                                  |                                                                              |                                                     | 1,293                                 |      |                |      | 1,268  |     
|Redemption of long-term debt                                                              |                                                                              |                                                     | (1,506                                | )    |                |      | (1,769 | )   
|Debt issue costs                                                                          |                                                                              |                                                     | (4                                    | )    |                |      | (6     | )   
|Issuance of capital stock, net of fees                                                    |                                                                              |                                                     | 143                                   |      |                |      | 635    |     
|Repurchase of capital stock                                                               |                                                                              |                                                     | (143                                  | )    |                |      | (319   | )   
|                                                                                          |                                                                              |                                                     |                                       |      |                |     
|                                                                                          |                                                                              |                                                     | Net cash used in financing activities |      |                | (218 | )      |      |      | (201 | )
|Effect of exchange rate changes on cash                                                   |                                                                              |                                                     | (3                                    | )    |                |      | (7     | )   
|                                                                                          |                                                                              |                                                     |                                       |      |                |     
|Decrease in cash and cash equivalents                                                     |                                                                              |                                                     | (355                                  | )    |                |      | (379   | )   
|Cash and cash equivalents at beginning of period                                          |                                                                              |                                                     | 790                                   |      |                |      | 828    |     
|                                                                                          |                                                                              |                                                     |                                       |      |                |     
|Cash and cash equivalents at end of period                                                |                                                                              | $                                                   | 435                                   |      |                | $    | 449    |     
|                                                                                          |                                                                              |                                                     |                                       |      |                |     



3



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TRW Automotive Holdings Corp.


Notes to Consolidated Financial Statements


(Unaudited)




|   |                        
|-- | -----------------------
|1. | Description of Business





|   |                      
|-- | ---------------------
|2. | Basis of Presentation







Earnings per share.


|                                    |  |                    |       |  |                |  |      | 
|----------------------------------- |  | ------------------ | ----- |  | -------------- |  | ---- | 
|                                    |  | Three Months Ended |      
|                                    |  |                    |      
|                                    |  | April 1, 2005      |       |  | March 26, 2004 | 
|                                    |  |                    |       |  |                | 
|                                    |  | (In millions)      |      
|Weighted average shares outstanding |  |                    | 99.0  |  |                |  | 94.3 | 
|Effect of dilutive securities       |  |                    | 2.0   |  |                |  | 3.5  | 
|                                    |  |                    |       |  |                | 
|Diluted shares outstanding          |  |                    | 101.0 |  |                |  | 97.8 | 
|                                    |  |                    |       |  |                | 

Warranties.


4



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##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|                                  |  |                       |     |         |          |   |          |               |  |            |                  |   |  |         |    |   |  |   |     | 
|--------------------------------- |  | --------------------- | --- | ------- | -------- | - | -------- | ------------- |  | ---------- | ---------------- | - |  | ------- | -- | - |  | - | --- | 
|                                  |  |                       |     |         |          |   |          | Changes in    |  |            |                 
|                                  |  |                       |     |         |          |   |          | Estimates And |  |            |                 
|                                  |  |                       |     | Current |          |   | Used for |               |  | Effects of |                  |   | 
|                                  |  | Beginning             |     |         | Period   |   |          | Purposes      |  |            | Foreign Currency |   |  | Ending  |   
|                                  |  | Balance               |     |         | Accruals |   |          | Intended      |  |            | Translation      |   |  | Balance |   
|                                  |  |                       |     |         |          |   |          |               |  |            |                  |   |  |         |   
|                                  |  | (Dollars in millions) |    
|Three months ended April 1, 2005  |  | $                     | 110 |         |          | $ | 17       |               |  | $          | (9               | ) |  | $       | (7 | ) |  | $ | 111 | 
|Three months ended March 26, 2004 |  |                       | 74  |         |          |   | 19       |               |  |            | (7               | ) |  |         |   |   |  |   | 86  | 

Stock-based compensation.




|                                                                                                  |             |                                |    |      |                |   |    |      | 
|------------------------------------------------------------------------------------------------- | ----------- | ------------------------------ | -- | ---- | -------------- | - | -- | ---- | 
|                                                                                                  |             | Three Months Ended             |   
|                                                                                                  |             |                                |   
|                                                                                                  |             | April 1, 2005                  |    |      | March 26, 2004 |  
|                                                                                                  |             |                                |    |      |                |  
|                                                                                                  |             | (In millions, except per share |   
|                                                                                                  |             | amounts)                       |   
|Net earnings, as reported                                                                         |             | $                              | 50 |      |                | $ | 2  |     
|Deduct: Stock-based compensation under SFAS 123 fair value
    method, net of related tax effects |             |                                | (2 | )    |                |   | (2 | )   
|                                                                                                  |             |                                |    |      |                |  
|Adjusted net earnings, fair value method                                                          |             | $                              | 48 |      |                | $ |   |     
|                                                                                                  |             |                                |    |      |                |  
|Basic earnings per share:                                                                         |             |                                |    |      |                |   |    |     
|                                                                                                  | As reported |                                | $  | 0.51 |                |   | $  | 0.02 | 
|                                                                                                  |             |                                |    |      |                |  
|                                                                                                  | Pro forma   |                                | $  | 0.49 |                |   | $  |     | 
|                                                                                                  |             |                                |    |      |                |  
|Diluted earnings per share:                                                                       |             |                                |    |      |                |   |    |     
|                                                                                                  | As reported |                                | $  | 0.50 |                |   | $  | 0.02 | 
|                                                                                                  |             |                                |    |      |                |  
|                                                                                                  | Pro forma   |                                | $  | 0.48 |                |   | $  |     | 
|                                                                                                  |             |                                |    |      |                |  

Comprehensive earnings (losses).


|                                         |  |                       |     |   |                |   |     |  
|---------------------------------------- |  | --------------------- | --- | - | -------------- | - | --- | -
|                                         |  | Three Months Ended    |    
|                                         |  |                       |    
|                                         |  | April 1, 2005         |     |   | March 26, 2004 |  
|                                         |  |                       |     |   |                |  
|                                         |  | (Dollars in millions) |    
|Net earnings                             |  | $                     | 50  |   |                | $ | 2   |  
|Foreign currency translation losses, net |  |                       | (31 | ) |                |   | (17 | )
|Realized net gains on cash flow hedges   |  |                       | 13  |   |                |   | 4   |  
|                                         |  |                       |     |   |                |  
|Comprehensive earnings (losses)          |  | $                     | 32  |   |                | $ | (11 | )
|                                         |  |                       |     |   |                |  

5



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##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)


Recent accounting pronouncements.




|   |                 
|-- | ----------------
|3. | Subsequent Event

 1 8 1 8




|   |                            
|-- | ---------------------------
|4. | Divestiture and Asset Sales







|   |              
|-- | -------------
|5. | Restructuring





6



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##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|                                  |  |                       |    |         |          |   |          |            |  |             |          |  |            |             |     |   |         |   |    |   |  |   |    | 
|--------------------------------- |  | --------------------- | -- | ------- | -------- | - | -------- | ---------- |  | ----------- | -------- |  | ---------- | ----------- | --- | - | ------- | - | -- | - |  | - | -- | 
|                                  |  |                       |    |         |          |   |          |            |  | Changes in  |          |  |           
|                                  |  |                       |    |         |          |   |          |            |  | Estimates   |          |  |           
|                                  |  |                       |    |         |          |   |          |            |  | and Effects |          |  |           
|                                  |  |                       |    | Current |          |   | Purchase |            |  | Used for    |          |  | of Foreign |             |     |  
|                                  |  | Beginning             |    |         | Period   |   |          | Price      |  |             | Purposes |  |            | Currency    |     |   | Ending  |  
|                                  |  | Balance               |    |         | Accruals |   |          | Allocation |  |             | Intended |  |            | Translation |     |   | Balance |  
|                                  |  |                       |    |         |          |   |          |            |  |             |          |  |            |             |     |   |         |  
|                                  |  | (Dollars in millions) |   
|Three months ended April 1, 2005  |  | $                     | 49 |         |          | $ | 8        |            |  | $           |         |  |            | $           | (12 | ) |         | $ | (4 | ) |  | $ | 41 | 
|Three months ended March 26, 2004 |  |                       | 79 |         |          |   | 5        |            |  |             | 2        |  |            |             | (25 | ) |         |   | (2 | ) |  |   | 59 | 





|   |            
|-- | -----------
|6. | Inventories



|                                      |                   |                       |     |     |                   |   |     |     | 
|------------------------------------- | ----------------- | --------------------- | --- | --- | ----------------- | - | --- | --- | 
|                                      |                   | As of                 |    
|                                      |                   |                       |    
|                                      |                   | April 1, 2005         |     |     | December 31, 2004 |  
|                                      |                   |                       |     |     |                   |  
|                                      |                   | (Dollars in millions) |    
|Finished products and work in process |                   | $                     | 360 |     |                   | $ | 373 |    
|Raw materials and supplies            |                   |                       | 307 |     |                   |   | 311 |    
|                                      |                   |                       |     |     |                   |  
|                                      | Total inventories |                       | $   | 667 |                   |   | $   | 684 | 
|                                      |                   |                       |     |     |                   |  



|   |                               
|-- | ------------------------------
|7. | Goodwill and Intangible Assets



| |         
| | --------
| | Goodwill



7



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##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




| |                  
| | -----------------
| | Intangible Assets



|                                    |                        |                       |     |     |                         |   |     |          |   |       |          |     |  |              |     |     |          |   |     |     |   |   |     |     | 
|----------------------------------- | ---------------------- | --------------------- | --- | --- | ----------------------- | - | --- | -------- | - | ----- | -------- | --- |  | ------------ | --- | --- | -------- | - | --- | --- | - | - | --- | --- | 
|                                    |                        | As of April 1, 2005   |     |     | As of December 31, 2004 |  
|                                    |                        |                       |     |     |                         |  
|                                    |                        | Gross                 |     |     |                         |   | Net |          |   | Gross |          |     |  |              | Net |    
|                                    |                        | Carrying              |     |     | Accumulated             |   |     | Carrying |   |       | Carrying |     |  | Accumulated  |     |     | Carrying |  
|                                    |                        | Amount                |     |     | Amortization            |   |     | Amount   |   |       | Amount   |     |  | Amortization |     |     | Amount   |  
|                                    |                        |                       |     |     |                         |   |     |          |   |       |          |     |  |              |     |     |          |  
|                                    |                        | (Dollars in millions) |    
|Definite-lived intangible assets:   |                        |                       |     |     |                         |   |     |          |   |       |          |     |  |              |     |     |          |   |     |     |   |   |     |    
|                                    | Customer relationships |                       | $   | 452 |                         |   | $   | (47      | ) |       | $        | 405 |  |              | $   | 452 |          |   | $   | (42 | ) |   | $   | 410 | 
|                                    | Developed technology   |                       |     | 82  |                         |   |     | (21      | ) |       |          | 61  |  |              |     | 81  |          |   |     | (18 | ) |   |     | 63  | 
|                                    |                        |                       |     |     |                         |   |     |          |   |       |          |     |  |              |     |     |          |  
|                                    | Total                  |                       |     | 534 |                         |   |     | (68      | ) |       |          | 466 |  |              |     | 533 |          |   |     | (60 | ) |   |     | 473 | 
|Indefinite-lived intangible assets: |                        |                       |     |     |                         |   |     |          |   |       |          |     |  |              |     |     |          |   |     |     |   |   |     |    
|                                    | Trademarks             |                       |     | 292 |                         |   |     |         |   |       |          | 292 |  |              |     | 292 |          |   |     |    |   |   |     | 292 | 
|                                    |                        |                       |     |     |                         |   |     |          |   |       |          |     |  |              |     |     |          |  
|Total                               |                        | $                     | 826 |     |                         | $ | (68 | )        |   | $     | 758      |     |  | $            | 825 |     |          | $ | (60 | )   |   | $ | 765 |    
|                                    |                        |                       |     |     |                         |   |     |          |   |       |          |     |  |              |     |     |          |  





|   |                             
|-- | ----------------------------
|8. | Other (Income) Expense  Net



|                                 |                              |                       |     |   |                |   |    |    |  
|-------------------------------- | ---------------------------- | --------------------- | --- | - | -------------- | - | -- | -- | -
|                                 |                              | Three Months Ended    |    
|                                 |                              |                       |    
|                                 |                              | April 1, 2005         |     |   | March 26, 2004 |  
|                                 |                              |                       |     |   |                |  
|                                 |                              | (Dollars in millions) |    
|Minority interest                |                              | $                     | 2   |   |                | $ | 3  |   
|Earnings of affiliates           |                              |                       | (5  | ) |                |   | (4 | ) 
|Foreign currency exchange losses |                              |                       | 5   |   |                |   | 3  |   
|Provision for bad debts          |                              |                       | 13  |   |                |   | 1  |   
|Miscellaneous other income       |                              |                       | (12 | ) |                |   | (7 | ) 
|                                 |                              |                       |     |   |                |  
|                                 | Other (income) expense  net |                       | $   | 3 |                |   | $  | (4 | )
|                                 |                              |                       |     |   |                |  





|   |                                   
|-- | ----------------------------------
|9. | Accounts Receivable Securitization





8



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)










 




9



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|    |             
|--- | ------------
|10. | Income Taxes









|    |                                                                            
|--- | ---------------------------------------------------------------------------
|11. | Pension Plans and Post-Retirement Benefits Other Than
    Pensions (OPEB)



| |              
| | -------------
| | Pension Plans



|                                               |  |                       |     |         |                |   |     |       |         |   |      |   |  |      |     |   |       |   |     |   |  |   |    |  
|---------------------------------------------- |  | --------------------- | --- | ------- | -------------- | - | --- | ----- | ------- | - | ---- | - |  | ---- | --- | - | ----- | - | --- | - |  | - | -- | -
|                                               |  | Three Months Ended    |    
|                                               |  |                       |    
|                                               |  | April 1, 2005         |     |         | March 26, 2004 |  
|                                               |  |                       |     |         |                |  
|                                               |  |                       |     | Rest of |                |   |     |       | Rest of |  
|                                               |  | U.S.                  |     |         | U.K.           |   |     | World |         |   | U.S. |   |  | U.K. |     |   | World |  
|                                               |  |                       |     |         |                |   |     |       |         |   |      |   |  |      |     |   |       |  
|                                               |  | (Dollars in millions) |    
|Defined benefit plans                          |  |                       |     |         |                |   |     |       |         |   |      |   |  |      |     |   |       |   |     |   |  |   |    |  
|Service cost                                   |  | $                     | 7   |         |                | $ | 9   |       |         | $ | 5    |   |  | $    | 8   |   |       | $ | 8   |   |  | $ | 5  |  
|Interest cost on projected benefit obligations |  |                       | 17  |         |                |   | 66  |       |         |   | 8    |   |  |      | 17  |   |       |   | 54  |   |  |   | 7  |  
|Expected return on plan assets                 |  |                       | (14 | )       |                |   | (89 | )     |         |   | (3   | ) |  |      | (13 | ) |       |   | (75 | ) |  |   | (3 | )
|                                               |  |                       |     |         |                |   |     |       |         |   |      |   |  |      |     |   |       |  
|Net pension cost (income)                      |  | $                     | 10  |         |                | $ | (14 | )     |         | $ | 10   |   |  | $    | 12  |   |       | $ | (13 | ) |  | $ | 9  |  
|                                               |  |                       |     |         |                |   |     |       |         |   |      |   |  |      |     |   |       |  



| |                                                          
| | ---------------------------------------------------------
| | Post-Retirement Benefits Other Than Pensions
    (OPEB)



10



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|                                    |  |                       |    |   |           |   |    | 
|----------------------------------- |  | --------------------- | -- | - | --------- | - | -- | 
|                                    |  | Three Months Ended    |   
|                                    |  |                       |   
|                                    |  | April 1,              |    |   | March 26, |  
|                                    |  | 2005                  |    |   | 2004      |  
|                                    |  |                       |    |   |           |  
|                                    |  | (Dollars in millions) |   
|Service cost                        |  | $                     | 2  |   |           | $ | 2  | 
|Interest cost                       |  |                       | 12 |   |           |   | 16 | 
|Amortization of unrecognized income |  |                       | (2 | ) |           |   |   | 
|                                    |  |                       |    |   |           |  
|Net post-retirement benefit cost    |  | $                     | 12 |   |           | $ | 18 | 
|                                    |  |                       |    |   |           |  



|    |     
|--- | ----
|12. | Debt



|                                             |                                        |                       |       |       |              |   |       |       | 
|-------------------------------------------- | -------------------------------------- | --------------------- | ----- | ----- | ------------ | - | ----- | ----- | 
|                                             |                                        | As of                 |      
|                                             |                                        |                       |      
|                                             |                                        | April 1,              |       |       | December 31, |  
|                                             |                                        | 2005                  |       |       | 2004         |  
|                                             |                                        |                       |       |       |              |  
|                                             |                                        | (Dollars in millions) |      
|Short-term debt                              |                                        | $                     | 38    |       |              | $ | 40    |      
|                                             |                                        |                       |       |       |              |  
|Long-term debt:                              |                                        |                       |       |       |              |   |       |      
|Senior Notes                                 |                                        | $                     | 1,042 |       |              | $ | 1,063 |      
|Senior Subordinated Notes                    |                                        |                       | 300   |       |              |   | 306   |      
|Term Loan facilities                         |                                        |                       | 1,298 |       |              |   | 1,512 |      
|Revolving credit facility                    |                                        |                       |      |       |              |   |      |      
|Lucas Industries Limited debentures due 2020 |                                        |                       | 198   |       |              |   | 202   |      
|Capitalized leases                           |                                        |                       | 36    |       |              |   | 39    |      
|Other borrowings                             |                                        |                       | 18    |       |              |   | 19    |      
|                                             |                                        |                       |       |       |              |  
|                                             | Total long-term debt                   |                       |       | 2,892 |              |   |       | 3,141 | 
|Less current portion                         |                                        |                       | 17    |       |              |   | 19    |      
|                                             |                                        |                       |       |       |              |  
|                                             | Long-term debt, net of current portion |                       | $     | 2,875 |              |   | $     | 3,122 | 
|                                             |                                        |                       |       |       |              |  



| |                                           
| | ------------------------------------------
| | Senior Notes and Senior Subordinated Notes

3 8 1 8  3 4 




11



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)






| |   |                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------
| |  | $117 million of such proceeds were used to repay 35% of the
    $300 million aggregate principal amount of 11% Senior
    Subordinated Notes;
|
| |  | $61 million was used to repay 35% of
    the 125 million
    aggregate principal amount of
    113/4% Senior
    Subordinated Notes;        
|
| |  | $109 million was used to repay 11% of the $925 million
    aggregate principal amount of
    93/8% Senior
    Notes; and                     
|
| |  | $30 million was used to repay 11% of
    the 200 million
    aggregate principal amount of
    101/8% Senior
    Notes.                     



 1 8




| |                  
| | -----------------
| | Credit Facilities

Senior Secured Credit Facilities.






12



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




January 2004 Refinancing. 


November 2004 Refinancing.




|    |              
|--- | -------------
|13. | Capital Stock

Repurchase of Northrop Shares.


Issuance and Registration of Shares.






13



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)


 1 8




Initial Public Offering.




|    |                         
|--- | ------------------------
|14. | Stock-based Compensation







|    |                           
|--- | --------------------------
|15. | Related Party Transactions

Blackstone.




Northrop.


14



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)










|    |                   
|--- | ------------------
|16. | Operating Segments



|                             |                         |                              |       |       |           |   |       |       |    | 
|---------------------------- | ----------------------- | ---------------------------- | ----- | ----- | --------- | - | ----- | ----- | -- | 
|                             |                         | Three Months Ended           |      
|                             |                         |                              |      
|                             |                         | April 1,                     |       |       | March 26, |  
|                             |                         | 2005                         |       |       | 2004      |  
|                             |                         |                              |       |       |           |  
|                             |                         | (Dollars in millions)        |      
|Sales to external customers: |                         |                              |       |       |           |   |       |      
|                             | Chassis Systems         |                              | $     | 1,847 |           |   | $     | 1,662 |   
|                             | Occupant Safety Systems |                              |       | 938   |           |   |       | 859   |   
|                             | Automotive Components   |                              |       | 440   |           |   |       | 402   |   
|                             |                         |                              |       |       |           |  
|Total Sales                  |                         | $                            | 3,225 |       |           | $ | 2,923 |      
|                             |                         |                              |       |       |           |  
|Segment profit before taxes: |                         |                              |       |       |           |   |       |      
|                             | Chassis Systems         |                              | $     | 68    |           |   | $     | 70    |   
|                             | Occupant Safety Systems |                              |       | 93    |           |   |       | 84    |   
|                             | Automotive Components   |                              |       | 34    |           |   |       | 35    |   
|                             |                         |                              |       |       |           |  
|Segment profit before taxes  |                         |                              | 195   |       |           |   | 189   |      
|Corporate expense and other  |                         |                              | (40   | )     |           |   | (36   | )    
|Financing costs              |                         |                              | (59   | )     |           |   | (63   | )    
|Loss on retirement of debt   |                         |                              |      |       |           |   | (47   | )    
|                             |                         |                              |       |       |           |  
|                             |                         | Earnings before income taxes |       | $     | 96        |   |       | $     | 43 | 
|                             |                         |                              |       |       |           |  
|Intersegment sales:          |                         |                              |       |       |           |   |       |      
|                             | Chassis Systems         |                              | $     | 3     |           |   | $     |      |   
|                             | Occupant Safety Systems |                              |       | 14    |           |   |       | 4     |   
|                             | Automotive Components   |                              |       | 12    |           |   |       | 13    |   
|                             |                         |                              |       |       |           |  
|                             |                         | $                            | 29    |       |           | $ | 17    |      
|                             |                         |                              |       |       |           |  

15



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|    |              
|--- | -------------
|17. | Contingencies









16



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)















|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS



Executive Overview


Our Business.




Recent Trends.


17



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)








Our Debt and Capital Structure.  1 8




18



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)


RESULTS OF OPERATIONS






| |                                    
| | -----------------------------------
| | TOTAL COMPANY RESULTS OF OPERATIONS

CONSOLIDATED STATEMENTS OF OPERATIONS


For the Three Months Ended April 1, 2005 and
March 26, 2004


(Unaudited)


|                                            |                              |                       |       |     |                |   |       |     | 
|------------------------------------------- | ---------------------------- | --------------------- | ----- | --- | -------------- | - | ----- | --- | 
|                                            |                              | Three Months Ended    |      
|                                            |                              |                       |      
|                                            |                              | April 1, 2005         |       |     | March 26, 2004 |  
|                                            |                              |                       |       |     |                |  
|                                            |                              | (Dollars in millions) |      
|Sales                                       |                              | $                     | 3,225 |     |                | $ | 2,923 |    
|Cost of sales                               |                              |                       | 2,861 |     |                |   | 2,599 |    
|                                            |                              |                       |       |     |                |  
|                                            | Gross profit                 |                       |       | 364 |                |   |       | 324 | 
|Administrative and selling expenses         |                              |                       | 136   |     |                |   | 124   |    
|Research and development expenses           |                              |                       | 54    |     |                |   | 37    |    
|Amortization of intangible assets           |                              |                       | 8     |     |                |   | 9     |    
|Restructuring charges and asset impairments |                              |                       | 8     |     |                |   | 5     |    
|Other (income) expense  net                |                              |                       | 3     |     |                |   | (4    | )  
|                                            |                              |                       |       |     |                |  
|                                            | Operating income             |                       |       | 155 |                |   |       | 153 | 
|Interest expense  net                      |                              |                       | 58    |     |                |   | 62    |    
|Loss on retirement of debt                  |                              |                       |      |     |                |   | 47    |    
|Accounts receivable securitization costs    |                              |                       | 1     |     |                |   | 1     |    
|                                            |                              |                       |       |     |                |  
|                                            | Earnings before income taxes |                       |       | 96  |                |   |       | 43  | 
|Income tax expense                          |                              |                       | 46    |     |                |   | 41    |    
|                                            |                              |                       |       |     |                |  
|                                            | Net earnings                 |                       | $     | 50  |                |   | $     | 2   | 
|                                            |                              |                       |       |     |                |  



| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Three Months Ended April 1, 2005 Compared to Three
    Months Ended March 26, 2004

Sales


Gross profit


19



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)


Administrative and selling expenses


Research and development expenses


Amortization of intangible assets


Restructuring charges and asset impairments


Other (income) expense  net


Interest expense  net


Accounts receivable securitization costs


Loss on retirement of debt




| |   |                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | $11 million write-off of unamortized debt issuance costs in
    conjunction with our January 2004 refinancing of the
    then-existing term loan facilities; and                                                                              
|
| |  | $30 million of redemption fees and $6 million
    write-off of unamortized debt issuance costs associated with our
    dollar and euro-denominated senior notes and senior-subordinated
    notes which were partially redeemed in March 2004.

Income tax expense


20



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




| |                              
| | -----------------------------
| | SEGMENT RESULTS OF OPERATIONS



|                            |                         |                             |       |    |                |   |       |    |     | 
|--------------------------- | ----------------------- | --------------------------- | ----- | -- | -------------- | - | ----- | -- | --- | 
|                            |                         | Three Months Ended          |      
|                            |                         |                             |      
|                            |                         | April 1, 2005               |       |    | March 26, 2004 |  
|                            |                         |                             |       |    |                |  
|                            |                         | (Dollars in millions)       |      
|Sales:                      |                         |                             |       |    |                |   |       |   
|Chassis Systems             |                         | $                           | 1,847 |    |                | $ | 1,662 |   
|Occupant Safety Systems     |                         |                             | 938   |    |                |   | 859   |   
|Automotive Components       |                         |                             | 440   |    |                |   | 402   |   
|                            |                         |                             |       |    |                |  
|                            |                         | $                           | 3,225 |    |                | $ | 2,923 |   
|                            |                         |                             |       |    |                |  
|Profit before taxes:        |                         |                             |       |    |                |   |       |   
|                            | Chassis Systems         |                             | $     | 68 |                |   | $     | 70 |    
|                            | Occupant Safety Systems |                             |       | 93 |                |   |       | 84 |    
|                            | Automotive Components   |                             |       | 34 |                |   |       | 35 |    
|                            |                         |                             |       |    |                |  
|                            |                         | Segment profit before taxes |       |    | 195            |   |       |    | 189 | 
|Corporate expense and other |                         |                             | (40   | )  |                |   | (36   | ) 
|Financing costs             |                         |                             | (59   | )  |                |   | (63   | ) 
|Loss on retirement of debt  |                         |                             |      |    |                |   | (47   | ) 
|                            |                         |                             |       |    |                |  
|                            |                         | Profit before taxes         |       | $  | 96             |   |       | $  | 43  | 
|                            |                         |                             |       |    |                |  



| |                
| | ---------------
| | CHASSIS SYSTEMS



| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Three Months Ended April 1, 2005 Compared to Three
    Months Ended March 26, 2004

|                    |  |                       |       |   |                |   |       |  
|------------------- |  | --------------------- | ----- | - | -------------- | - | ----- | -
|                    |  | Three Months Ended    |      
|                    |  |                       |      
|                    |  | April 1, 2005         |       |   | March 26, 2004 |  
|                    |  |                       |       |   |                |  
|                    |  | (Dollars in millions) |      
|Sales               |  | $                     | 1,847 |   |                | $ | 1,662 |  
|Profit before taxes |  |                       | 68    |   |                |   | 70    |  
|Restructuring       |  |                       | (4    | ) |                |   | (5    | )

Sales


Profit before taxes


21



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




| |                        
| | -----------------------
| | OCCUPANT SAFETY SYSTEMS



| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Three Months Ended April 1, 2005 Compared to Three
    Months Ended March 26, 2004

|                    |  |                       |     |   |                |   |     | 
|------------------- |  | --------------------- | --- | - | -------------- | - | --- | 
|                    |  | Three Months Ended    |    
|                    |  |                       |    
|                    |  | April 1, 2005         |     |   | March 26, 2004 |  
|                    |  |                       |     |   |                |  
|                    |  | (Dollars in millions) |    
|Sales               |  | $                     | 938 |   |                | $ | 859 | 
|Profit before taxes |  |                       | 93  |   |                |   | 84  | 
|Restructuring       |  |                       | (2  | ) |                |   |    | 

Sales


Profit before taxes




| |                      
| | ---------------------
| | AUTOMOTIVE COMPONENTS



| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Three Months Ended April 1, 2005 Compared to Three
    Months Ended March 26, 2004

|                    |  |                       |     |   |                |   |     | 
|------------------- |  | --------------------- | --- | - | -------------- | - | --- | 
|                    |  | Three Months Ended    |    
|                    |  |                       |    
|                    |  | April 1, 2005         |     |   | March 26, 2004 |  
|                    |  |                       |     |   |                |  
|                    |  | (Dollars in millions) |    
|Sales               |  | $                     | 440 |   |                | $ | 402 | 
|Profit before taxes |  |                       | 34  |   |                |   | 35  | 
|Restructuring       |  |                       | (2  | ) |                |   |    | 

Sales


Profit before taxes


22



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)


LIQUIDITY AND CAPITAL RESOURCES




| |           
| | ----------
| | Cash Flows

Operating activities.


Investing activities.




Financing activities.






| |                     
| | --------------------
| | Debt and Commitments

Sources of Liquidity.





23



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)





 1 8 1 8




Funding Our Requirements.


Senior Secured Credit Facilities.




Debt Restrictions.


24



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)






Interest Rate Swap Agreements.




| |                                        
| | ---------------------------------------
| | Contractual Obligations and Commitments



 1 8






| |                               
| | ------------------------------
| | Off-Balance Sheet Arrangements



25



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)














26



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)






| |                             
| | ----------------------------
| | Other Receivables Facilities

 




| |                                      
| | -------------------------------------
| | Research, Development and Engineering



|                                  |       |                       |     |     |           |   |     |     | 
|--------------------------------- | ----- | --------------------- | --- | --- | --------- | - | --- | --- | 
|                                  |       | Three Months Ended    |    
|                                  |       |                       |    
|                                  |       | April 1,              |     |     | March 26, |  
|                                  |       | 2005                  |     |     | 2004      |  
|                                  |       |                       |     |     |           |  
|                                  |       | (Dollars in millions) |    
|Research and development expenses |       | $                     | 54  |     |           | $ | 37  |    
|Engineering costs                 |       |                       | 134 |     |           |   | 118 |    
|                                  |       |                       |     |     |           |  
|                                  | Total |                       | $   | 188 |           |   | $   | 155 | 
|                                  |       |                       |     |     |           |  





| |                      
| | ---------------------
| | Environmental Matters





27



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)








| |              
| | -------------
| | Contingencies









28



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)










| |              
| | -------------
| | Other Matters

Repurchase of Northrop Shares.






| |                                 
| | --------------------------------
| | Recent Accounting Pronouncements





| |        
| | -------
| | Outlook

1 8








29



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)










| |                           
| | --------------------------
| | Forward-Looking Statements





30



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)











|        |                                                                
|------- | ---------------------------------------------------------------
|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISKS



Foreign Currency Exchange Rate Risk.


Interest Rate Risk.


Sensitivity Analysis.


31



---



##### 



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|                                 |                                |                       |   |     |                |  |   |               |   |  |  |            | 
|-------------------------------- | ------------------------------ | --------------------- | - | --- | -------------- |  | - | ------------- | - |  |  | ---------- | 
|                                 |                                | Assuming a 10%        |   |     | Assuming a 10% |  |   | Favorable     |  
|                                 |                                | increase in           |   |     | decrease in    |  |   | (unfavorable) |  
|                                 |                                | prices/rates          |   |     | prices/rates   |  |   | change in     |  
|                                 |                                |                       |   |     |                |  |   |               |  
|                                 |                                | (Dollars in millions) |  
|Market Risk                      |                                |                       |   |     |                |  |   |               |   |  |  |           
|Foreign Currency Rate Sensitive: |                                |                       |   |     |                |  |   |               |   |  |  |           
|Forwards *                       |                                |                       |   |     |                |  |   |               |   |  |  |           
|                                 | - Long US$                     |                       | $ | (48 | )              |  | $ | 51            |   |  |  | Fair value | 
|                                 | - Short US$                    |                       | $ | 17  |                |  | $ | (20           | ) |  |  | Fair value | 
|Debt                             |                                |                       |   |     |                |  |   |               |   |  |  |           
|                                 | - Foreign currency denominated |                       | $ | (70 | )              |  | $ | 70            |   |  |  | Fair value | 
|Interest Rate Sensitive:         |                                |                       |   |     |                |  |   |               |   |  |  |           
|Debt                             |                                |                       |   |     |                |  |   |               |   |  |  |           
|                                 | - Fixed rate                   |                       | $ | 37  |                |  | $ | (39           | ) |  |  | Fair value | 
|                                 | - Variable rate                |                       | $ | (5  | )              |  | $ | 5             |   |  |  | Cash flow  | 
|Swaps                            |                                |                       |   |     |                |  |   |               |   |  |  |           
|                                 | - Pay variable/ receive fixed  |                       | $ | (1  | )              |  | $ | 1             |   |  |  | Fair value | 






|  |                                                                                                                                                                                                                                                                                                                                                                                                          
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Includes only the risk related to the derivative instruments
    that serve as hedges and does not include the related underlying
    hedged item or any other operating transactions. The analyses
    also do not factor in a potential change in the level of
    variable rate borrowings or derivative instruments outstanding
    that could take place if these hypothetical conditions prevailed.






|        |                        
|------- | -----------------------
|ITEM 4. | CONTROLS AND PROCEDURES





32



---



##### 






PART II







|        |                  
|------- | -----------------
|ITEM 1. | LEGAL PROCEEDINGS








|        |                                                                
|------- | ---------------------------------------------------------------
|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
    PROCEEDS



|    |                   
|--- | ------------------
|(c) | Issuer repurchases

|                                           |  |              |           |  |            |              |       |            |             |  |             |  |  |  |   | 
|------------------------------------------ |  | ------------ | --------- |  | ---------- | ------------ | ----- | ---------- | ----------- |  | ----------- |  |  |  | - | 
|                                           |  |              |           |  |            | Total Number |       |            | Maximum     | 
|                                           |  |              |           |  |            | of Shares    |       |            | Number of   | 
|                                           |  |              |           |  |            | Purchased As |       |            | Shares that | 
|                                           |  |              |           |  |            | Part Of      |       |            | May Yet Be  | 
|                                           |  |              |           |  |            | Publicly     |       |            | Purchased   | 
|                                           |  | Total Number |           |  | Average    |              |       | Announced  |             |  | Under the   | 
|                                           |  | of Shares    |           |  | Price Paid |              |       | Plans or   |             |  | Plans or    | 
|Period                                     |  | Purchased    |           |  | Per Share  |              |       | Program(s) |             |  | Programs(s) | 
|                                           |  |              |           |  |            |              |       |            |             |  |             | 
|January 1, 2005 through January 31, 2005   |  |              |          |  |            |              |      |            |             |  |            |  |  |  |  | 
|February 1, 2005 through February 28, 2005 |  |              |          |  |            |              |      |            |             |  |            |  |  |  |  | 
|March 1, 2005 through April 1, 2005(a)     |  |              | 7,256,500 |  |            | $            | 19.65 |            |             |  |            |  |  |  |  | 
|                                           |  |              |           |  |            |              |       |            |             |  |             | 
|Total                                      |  |              | 7,256,500 |  |            | $            | 19.65 |            |             |  |            |  |  |  |  | 
|                                           |  |              |           |  |            |              |       |            |             |  |             | 






|    |                                                                         
|--- | ------------------------------------------------------------------------
|(a) | Shares repurchased by the Company from Northrop Grumman
    Corporation.








|        |                  
|------- | -----------------
|ITEM 5. | OTHER INFORMATION

Board of Directors.




Receivables Facility Amendment.


33



---



##### 










|        |         
|------- | --------
|ITEM 6. | EXHIBITS

|        |    |              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|------- | -- | ------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |             
|Number  |    | Exhibit Name
|        |    |             
|        | 10 | .1*          |  | Amendment No. 1 dated as of March 15, 2005, to the
    Fourth Amended And Restated Credit Agreement dated as of
    December 17, 2004, among TRW Automotive Holdings Corp., TRW
    Automotive Intermediate Holdings Corp., TRW Automotive Inc.
    (f/k/a TRW Automotive Acquisition Corp.), the Foreign Subsidiary
    Borrowers party thereto, the Lenders party thereto from time to
    time, JPMorgan Chase Bank, N.A., as administrative agent and as
    collateral agent for the Lenders, Bank Of America, N.A. and
    Goldman Sachs Credit Partners L.P., as co-syndication agents,
    and Credit Suisse First Boston and The Bank Of Nova Scotia, as
    co-documentation agents
|        | 10 | .2*          |  | First Stock Purchase Agreement dated as of March 8, 2005,
    by and among TRW Automotive Holdings Corp., Northrop Grumman
    Corporation, and Richmond U.K. Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 10 | .3*          |  | Second Stock Purchase Agreement dated as of March 8, 2005,
    by and among TRW Automotive Holdings Corp., Northrop Grumman
    Corporation, and Richmond U.K. Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .4*          |  | Stock Purchase And Registration Rights Agreement dated as of
    March 8, 2005, between TRW Automotive Holdings Corp., and
    T. Rowe Price Associates, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10 | .5 *         |  | Stock Purchase And Registration Rights Agreement dated as of
    March 8, 2005, between TRW Automotive Holdings Corp., and
    certain investment advisory client accounts of Wellington
    Management Company, llp                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10 | .6*          |  | Amendment No. 2 dated as of May 2, 2005 to Amended and
    Restated Receivables Loan Agreement, dated as of
    December 31, 2004, by and among TRW Automotive Global
    Receivables LLC, as borrower, the conduit lenders, the committed
    lenders, the funding agents and JPMorgan Chase Bank, N.A. as
    administrative agent                                                                                                                                                                                                                                                                                                                                                         
|        | 31 | (a)*         |  | Certification Pursuant to Rule 13a-14(a) under the
    Securities Exchange Act of 1934, as adopted pursuant to
    §302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 31 | (b)*         |  | Certification Pursuant to Rule 13a-14(a) under the
    Securities Exchange Act of 1934, as adopted pursuant to
    §302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 32 | (a)*         |  | Certification Pursuant to 18 U.S.C. §1350, As Adopted
    Pursuant to §906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 32 | (b)*         |  | Certification Pursuant to 18 U.S.C. §1350, As Adopted
    Pursuant to §906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                






|  |             
|- | ------------
|* | Filed herein

34



---



##### 



Signature






| |                              
| | -----------------------------
| | TRW Automotive Holdings Corp.
| | (Registrant)                 



| |     |                     
| | --- | --------------------
| | By: | /s/ Joseph S. Cantie

| |                                 
| | --------------------------------
| |                                 
| | Joseph S. Cantie                
| | Executive Vice President and    
| | Chief Financial Officer         
| | (On behalf of the Registrant and
| | as Principal Financial Officer) 



35



---



##### 



EXHIBIT INDEX


|        |    |              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|------- | -- | ------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |             
|Number  |    | Exhibit Name
|        |    |             
|        | 10 | .1*          |  | Amendment No. 1 dated as of March 15, 2005, to the
    Fourth Amended And Restated Credit Agreement dated as of
    December 17, 2004, among TRW Automotive Holdings Corp., TRW
    Automotive Intermediate Holdings Corp., TRW Automotive Inc.
    (f/k/a TRW Automotive Acquisition Corp.), the Foreign Subsidiary
    Borrowers party thereto, the Lenders party thereto from time to
    time, JPMorgan Chase Bank, N.A., as administrative agent and as
    collateral agent for the Lenders, Bank Of America, N.A. and
    Goldman Sachs Credit Partners L.P., as co-syndication agents,
    and Credit Suisse First Boston and The Bank Of Nova Scotia, as
    co-documentation agents
|        | 10 | .2*          |  | First Stock Purchase Agreement dated as of March 8, 2005,
    by and among TRW Automotive Holdings Corp., Northrop Grumman
    Corporation, and Richmond U.K. Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 10 | .3*          |  | Second Stock Purchase Agreement dated as of March 8, 2005,
    by and among TRW Automotive Holdings Corp., Northrop Grumman
    Corporation, and Richmond U.K. Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .4*          |  | Stock Purchase And Registration Rights Agreement dated as of
    March 8, 2005, between TRW Automotive Holdings Corp., and
    T. Rowe Price Associates, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10 | .5 *         |  | Stock Purchase And Registration Rights Agreement dated as of
    March 8, 2005, between TRW Automotive Holdings Corp., and
    certain investment advisory client accounts of Wellington
    Management Company, llp                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10 | .6*          |  | Amendment No. 2 dated as of May 2, 2005 to Amended and
    Restated Receivables Loan Agreement, dated as of
    December 31, 2004, by and among TRW Automotive Global
    Receivables LLC, as borrower, the conduit lenders, the committed
    lenders, the funding agents and JPMorgan Chase Bank, N.A. as
    administrative agent                                                                                                                                                                                                                                                                                                                                                         
|        | 31 | (a)*         |  | Certification Pursuant to Rule 13a-14(a) under the
    Securities Exchange Act of 1934, as adopted pursuant to
    §302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 31 | (b)*         |  | Certification Pursuant to Rule 13a-14(a) under the
    Securities Exchange Act of 1934, as adopted pursuant to
    §302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 32 | (a)*         |  | Certification Pursuant to 18 U.S.C. §1350, As Adopted
    Pursuant to §906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 32 | (b)*         |  | Certification Pursuant to 18 U.S.C. §1350, As Adopted
    Pursuant to §906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                






|  |             
|- | ------------
|* | Filed herein