In Focus

TRW's Difficult Identity

NOTE: For the month of July we decided to feature public companies from some of the states the Chicks live in. This week we are doing Ohio, which has many companies listed on the Forbes 500 list. Here are the companies we have chosen to review (along with where they appear on Forbes' list): The Limited (185), AK Steel (372), Cardinal Health (51), and TRW (114).

In all my brilliance I thought we should theme the weeks of July by the different states some of the Chicks live in, this week being Chick Megan's, Ohio. When we came up with a list of 29 companies to choose from, I was immediately drawn to TRW, Inc. for two reasons. First, I have my own company called TRW. It's a small corporation my husband and I formed back in the 80's as a publicity tool to promote Phil's hockey career. We named the company after our first three children (the only three we had at the time) Taylor, Reide and Wilson. The company is still in business, but not based in Cleveland, and not the subject of this article.

The second reason I was so attracted to researching this company was that I've been familiar with them for years. I've gone through many a credit check by none other than TRW. I was excited to learn more about the company that I fought tooth and nail over a few silly delinquent college loan payments. They almost cost me a new house in Buffalo.

Off to research I went.

How dumb am I? It's not even the same company. TRW, Inc. sold off the credit-checking segment of the business years ago. The company I was looking at was my worst nightmare. TRW manufacturers automobile parts! Wait, it gets better -- they also dabble in the aerospace industry! Did I mention that when they're not up to their elbows in 10W30, they're rubbing shoulders with the federal and state governments? TRW helps them with their information technology and intelligence. Glory day, I get to write and research an engineer's dream. What do I know about an ABS braking configuration or an aircraft engine valve?

Enjoy the rest of the article, I may get sidetracked.

If you want to see a serious website, check out www.trw.com I've printed their information and have tried to read it the last three nights before I went to sleep. Each night I wake up at 3 AM with research papers scattered all over the bed. To get back to sleep, I have to read something. Luckily for me, I have an Enquirer.

Have you seen how skinny and firm Madonna is less than a year after giving birth to little Rocco? Life is not fair.

TRW, Inc. seems like a company who's not really sure what they do, or what they specialize in. Their slogan is "The Vision To Innovate, The Passion To Perform." Yeah, me too. Throughout the years they've been in and out of a number of different industries so I guess they have to be vague about their mission. The company was founded in 1901 as a cap screw and fastener company, and evolved into making engine valves for the new auto industry. This led to manufacturing aircraft engine valves for fighter planes in World War I. Anyone see Pearl Harbor? Great scenes involving fighter planes. I know it's a movie about WWII, but do you think Ben Affleck and Gwyneth Paltrow will ever get back together?

TRW: True Romance Waits.

TRW actually stands for two companies that merged in 1958. Thompson Products (makers of those valves) and Ramo-Wooldrdige Corporation in Los Angeles. Ramo-Wooldridge was the electronics and defense partner Thompson was looking for. Soon after the merge, they changed their name to TRW and launched the Pioneer I, the first industry built satellite. It was NASA's first step into space.

TRW: Total Rocket Wattage.

Their numbers aren't exactly out of this world, though. TRW's launches gross margins of 14.9% (35% short of our Chick's required 50%), net margins of 2.5% (short of our preferred 8%), and they don't have a ton of cash compared to their long-term debt. But, there is starlight at the end of the Tunnel's Random Wings. They have a tight hold on their flow ratio, managing their inventory and cash flow at a ratio below 1.0. They've also increased their sales year after year. but that, too, is random. From 1999-2000, sales increased 1.5%, but the year before that; they increased by a whopping 42%.

When Oprah was 42 she began hitting menopause. She met with Dr. Christiane Northrup, author of The Wisdom of Menopause, and now at 47, she sees the whole change of life thing much differently. Geez, I love the Enquirer. Bring it on!

Well, bring it on TRW does... from the road to the sky. In a wingnut, the company serves three markets:

1. The automobile industry -- This is 60% of their business. They make airbags, antilock brakes (ABS), traction-control systems, seat belts systems, and steering and suspension systems.
2. Space and Defense Products -- Spacecraft and satellite technology, defense communications equipment and high-energy lasers.
3. Computer Systems -- Clients are mainly government related.

Do you think Alec Baldwin will ever leave poor Kim Basinger alone? Seriously, every time I open my night reading, he's berating her for something. Can't he take notes from Paul Newman? Little Ireland needs a stable family.

TRW: Tried Romance Wronged.

TRW is still in the process of unloading companies that aren't in the core areas that they want to concentrate on, which is mainly automotive. I have no idea what the future of this company holds, I only know this: it is based in Cleveland, it's been around forever, it's changed its focus a gazillion times, airbags save lives when used properly, don't pump ABS brakes as they do it all by themselves, and Chastity Bono needs to lose weight.