Sales Growth and Strong Cash Flow
(Stockholm, April 25, 2014) – – – For the three-month period ended March 31,
2014, Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the worldwide leader in
automotive safety systems – reported consolidated sales of $2,296 million, the
Company’s highest first quarter sales ever.
Quarterly organic sales* grew by close to 8%, exceeding our guidance for organic
sales growth of “around 7%”. The adjusted operating margin* for the quarter was
8.6%, exceeding our guidance for a margin of “around 8%”. Cash flow from
operations amounted to $185 million, the Company’s highest cash flow ever for a
first quarter, compared to $141 million in the same quarter of 2013.
For the second quarter of 2014, we expect organic sales to increase by around 5%
compared to the same period in 2013 and an adjusted operating margin of around
9%. The indication for the full year, is for organic sales growth of more than
5% compared to 2013 and an adjusted operating margin of around 9%.
(Dollars in millions, except per share data) Q1 2014 Q1 2013 Change
Net sales $2,295.8 $2,135.0 7.5%
Operating income $191.7 $182.4 5.1%
Operating margin 8.4% 8.5% (0.1)pp
Adjusted operating margin (1) 8.6% 8.8% (0.2)pp
Earnings per share, diluted (2) $1.38 $1.29 7.0%
Adjusted earnings per share, diluted (1, 2) $1.43 $1.32 8.3%
Operating cash flow $185.3 $140.8 31.6%
1) Excluding costs for capacity alignment and antitrust investigations.*
2) Assuming dilution and net of treasury shares.
Comments from Jan Carlson, President & CEO
“2014 started with a solid quarter for Autoliv. I am pleased with our continued
strong sales growth and the higher than expected operating margin. The margin
improvement was a result of strong execution on the higher than expected sales.
In addition, we increased shareholder value by returning over $140 million
during the quarter.
China saw double digit light vehicle production growth in the first quarter and
we believe there will be close to 10% light vehicle production growth in China
for the full year 2014. We are making progress with our operational challenges
in Europe and Brazil. However the significant vehicle production decline now
expected in Brazil this year will put further strain on our improvement efforts
in the country.
In our active safety business we saw the fourth consecutive quarter of more than
50% growth, and we expect strong sales to continue. However our growth rates
will be more in line with the addressable market for the remainder of the year,
as our particularly strong growth during the last three quarters of 2013 impacts
the year over year comparisons. In addition we are increasing our engineering
efforts in this important growth area in order to further support long term
In line with adjusting our capital structure we successfully completed a private
placement of debt securities in the US market that generated an aggregate of
$1.25 billion in proceeds at an average interest rate of around 3.8%, a strong
sign of confidence in our Company.
We continue to view 2014 as a transition year with high investments for growth,
adjustments of our global footprint and a focus on our operational margin
An earnings conference call will be held at 3:00 p.m. (CET) today, April 25. To
follow the webcast or to obtain the pin code and phone number, please access
www.autoliv.com. The conference slides will be available on our web site as soon
as possible following the publication of this earnings report.
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