Autoliv Financial Report October - December 2008
STOCKHOLM, Sweden January 29, 2009: For the three-month period ended December 31, 2008, Autoliv Inc. (STO:ALIV) – the worldwide leader in automotive safety systems – reported a decline in consolidated net sales of 33% to $1,193 million including an organic sales decline of 26% compared to the same quarter 2007. Operating margin before severance and other restructuring costs was 1.1% (non-U.S. GAAP measure, see enclosed table).
The sales decline was in line with the Company’s revised guidance in December, while operating income was better than the breakeven level expected. The headcount has been reduced by 5,900 or nearly 14%, since July when the Company announced an action program which initially targeted a headcount reduction of 3,000 by the end of 2009.
Operations continued to generate a strong cash flow of $188 million and of $110 million before financing. Net debt decreased by 7% during the quarter to $1,195 million. At the end of the year, the Company had $489 million in cash and more than $650 million in unutilized credit facilities.
As guided, the Company reported a loss including severance and restructuring. Operating loss was $27 million, loss before taxes $47 million, net loss $38 million and loss per share $0.55. On a comparable basis, i.e. excluding severance and restructuring costs of $40 million, the Company reported an operating income of $13 million, loss before taxes of $7 million, net loss of $12 million and loss per share of $0.17 (non-U.S. GAAP measures, see enclosed table).
For the first quarter of 2009, the Company expects a decline in consolidated net sales of more than 45% with organic sales declining by approximately 40% and a negative operating margin in the range of 5 to 7% excluding restructuring costs. See below under “Outlook”.
An earnings conference call will be held at 3:00 p.m. (CET) today January 29. To listen in, call (in Europe) +44-203-003-2665 and (in the U.S.) +1-866-966-5335 or access AUTOLIV under “News/Calendar”.