TRW Mulls Spinning Off Auto Business

TRW Inc. may split its automotive business from its space and defense unit as a way to boost the company’s ailing stock, Chief Executive Joseph Gorman said. Cleveland-based TRW, the nation’s largest maker of automotive air bags, is looking to “unlock the value” of the company, Gorman said in an interview. The auto-parts unit’s operating profit and margins fell for two straight quarters because of auto makers pushing for lower prices and the strike at General Motors Corp., TRW said. A spinoff of the unit would be attractive for shareholders because of the tax advantages, Gorman said. Possibilities include selling parts of either business, spinning off one business to shareholders, or splitting up the businesses but keeping a common ownership. TRW’s shares rose $1.81 to close at $45.63 on the New York Stock Exchange.