Report
Press release
Sales and EBIT in line with Guidance
Cash Flow better than Expected
(Stockholm, April 21, 2009) - - - For the three-month period ended March 31, 2009, Autoliv Inc. (NYSE: ALV and SSE: ALIV) - the worldwide leader in automotive safety systems - reported a decline in consolidated net sales of 49% to $927 million including an organic sales decline of 40% compared to the same quarter 2008 due to a 45% drop in North American and West European light vehicle production. The Company reported an operating loss of $73 million and a negative operating margin of 7.8% before severance and other restructuring costs (non-U.S. GAAP measure, see enclosed table).
The Company therefore managed to offset this larger-than-expected drop in light vehicle production and reached its guidance from February. This was thanks to more aggressive cost reduction measures, including an additional headcount reduction of nearly 4,000 during the quarter and nearly 10,000 or 23% since last summer.
The negative cash flow from operations was limited to $9 million, and to $45 million after investing activities. This better-than-expected outcome reflects significant inventory and capital expenditure reductions. At the end of the quarter, Autoliv improved its financial position by raising $377 million, net in equity and equity units.
Including severance and restructuring cost of $16 million, the Company reported an operating loss of $89 million, a loss before taxes of $104 million, a net loss of $64 million and loss per share of $0.90.
For the second quarter of 2009, the Company expects a decline in consolidated net sales in the range of 40-45% with organic sales declining by more than 30% and a negative operating margin of less than 3% excluding restructuring costs and major customer defaults.
An earnings conference call will be held at 3:00 p.m. (CET) today April 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".