Report
Press release
Sales and EBIT better than Expected
Strong Cash Flow; better than Last Year
(Stockholm, July 21, 2009) - - - For the three-month period ended June 30, 2009, Autoliv Inc. (NYSE: ALV and SSE: ALIV) - the worldwide leader in automotive safety systems - reported net sales of $1,193 million, a positive operating margin of 1.7% before restructuring charges and a positive cash flow of $96 million before financing (non-U.S. GAAP measures, see enclosed tables).
These results were better than guidance provided in April thanks to the Company's actions and stronger than anticipated light vehicle production.
Compared to the same quarter 2008, consolidated sales declined by 37% with the organic sales portion declining by 28% due to a 35% drop in light vehicle production (LVP) in North America and Western Europe, where Autoliv generates more than 70% of its sales.
Including severance and other restructuring charges of $32 million, operating income was a loss of $12 million, income before taxes a loss of $28 million and net income a loss of $21 million, corresponding to a loss per share of 24 cents.
Operations generated $127 million in cash, while the $96 million before financing was $9 million more than in the same quarter 2008 despite higher severance payments. Cash flow was also positive before financing for the full six-month period. The first quarter (when sales fell by 49%) is expected to be the only quarter the Company will report a negative cash flow.
For the third quarter, the Company expects a decline in consolidated net sales of 20-25% with organic sales declining by 15-20% and a positive operating margin in the range of 1% to 3% excluding restructuring charges.
An earnings conference call will be held at 3:00 p.m. (CET) today July 21. To listen in, call (in Europe) +44-203-003-2665 and (in the U.S.) +1-866-966-5335 or access www.autoliv.com under "News/Calendar".