Solid growth across our markets
(Stockholm, July 18, 2014) – – – For the three-month period ended June 30, 2014,
Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the worldwide leader in automotive
safety systems – reported consolidated sales of $2,383 million, the highest
quarterly sales for the Company ever. Quarterly organic sales (for non-U.S. GAAP
measures* see enclosed reconciliation table) grew by more than 7%. The adjusted
operating margin* was 9.3%.
The expectation at the beginning of the quarter was for an organic sales growth
of “around 5%” and an adjusted operating margin of “around 9%”. During the
quarter the Company recorded legal costs related to the settlements of class
action lawsuits in the U.S. of around $70 million. Additionally the Company
returned a total of $146 million to our shareholders through share buybacks and
dividends. The Company also secured $1.25 billion in long term funding at an
average interest rate of 3.84% by the closing of its U.S. private placement.
For the third quarter of 2014 we expect organic sales to increase by around 6%,
and an adjusted operating margin of around 8.5%. The indication for the full
year is now for organic sales growth of more than 6%, and an adjusted operating
margin of around 9%.
For Key Figures summary table, please refer to attached file below.
Comments from Jan Carlson, Chairman, President & CEO
“In the second quarter we saw solid growth across our markets, notably North
America, Europe and Japan. The exception was Brazil where we saw a sharp decline
in light vehicle production. In addition, our main growth engines over the last
two years, China and active safety, continued their strong performance.
Coming from low production levels, Europe saw its sixth consecutive quarter of
growth with European car sales growing by 7% in the first half of 2014. At the
moment we see a slow but sustained recovery in Europe. This supports the
operational improvement program in our European steering wheel business which is
developing in line with the original plan outlined last year.
The growth in Japan was a positive surprise. At the beginning of the quarter a
decline of the light vehicle production was expected as a result of an increase
in the Japanese consumption tax. Instead, we saw slight growth and a favorable
product mix for Autoliv which led to double digit growth. A sustained recovery
in the Japanese economy could also reflect positively on the light vehicle
production moving forward.
Active safety showed solid growth in the quarter and in order to support the
continued growth and development in this business we have decided to increase
the development and engineering spending.
In the current situation with millions of cars being recalled for safety related
reasons the importance of quality cannot be overemphasized. In this environment
we continue to further build our position as the industry’s quality leader, as
our business is all about saving lives.
With these issues in mind we continue the focus on our growth strategy, quality,
and execution of the 2014 transition. ”
An earnings conference call will be held at 3:00 p.m. (CET) today, July 18. 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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