Report
Press release
Operating Income and Cash Flow better than Last Year
(Stockholm, October 20, 2009) --- For the three-month period ended September 30, 2009, Autoliv Inc. (NYSE: ALV and SSE: ALIV) - the worldwide leader in automotive safety systems - reported net sales of $1,326 million, an operating margin of 5.6% before restructuring charges and a cash flow of $105 million before financing (non-U.S. GAAP measures, see enclosed tables).
All these results were better than expected in July, partially due higher light vehicle production resulting from the U.S. "Cash for Clunkers" program and other scrapping incentives. Operating margin was also better than the updated guidance from September, partially due to temporary effects.
Compared to the same quarter 2008, consolidated net sales declined by 14% with the organic sales portion declining by 12% due to a 15% drop in light vehicle production (LVP) in North America and Europe, where Autoliv generates more than 70% of its sales.
Including severance and other restructuring charges of $14 million, operating income was $60 million, income before taxes $39 million, total net income $34 million and earnings per share 37 cents.
Operations generated $125 million in cash compared to $102 million in the same quarter 2008.
For the fourth quarter, consolidated net sales are expected to grow by approximately 25%, with the organic sales portion growing by more than 10%. An operating margin of at least 7%, excluding restructuring charges, is expected for the quarter.
An earnings conference call will be held at 3:00 p.m. (CET) today October 20. To obtain your personal pin code and phone number, please access www.autoliv.com under "News/Calendar".