STOCKHOLM, July 21, 2017 /PRNewswire/ --For the
three-month period ended June 30,
2017, Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb), the
worldwide leader in automotive safety systems, reported
consolidated sales of $2,545 million.
Quarterly organic sales* grew by 0.2%. The reported operating
margin was 8.5% while the adjusted operating margin* was 8.4% (for
non-U.S. GAAP measures see enclosed reconciliation tables).
The expectation at the beginning of the quarter was for
quarterly organic sales to increase by "around 2%" and an adjusted
operating margin of "around 8.5%". The lower than expected organic
sales growth reflects lower customer call-offs due to lower than
expected light vehicle production in China and North
America.
For the third quarter of 2017, the Company expects organic sales
to increase in the range of 0-2% and an adjusted operating margin
in the 7.5-8.0% range. The indication for the full year remains
unchanged for adjusted operating margin at around 8.5% and
consolidated sales growth at around 3% while we now expect an
organic sales growth of around 2%. (See the "Outlook" section on
the next page for further discussion of organic sales and adjusted
operating margin, which are forward-looking non-U.S. GAAP
measures).
Key Figures
For Key Figures summary table, please refer to attached file
below.
Comments from Jan Carlson,
Chairman, President & CEO
"I am pleased that we continue to execute well in Passive Safety
and that proactive adjustments to a weaker market in China and North
America helped the segment generate another quarter of
double digit operating margin, despite continued elevated
investments for growth. We managed another quarter with good
operating efficiency, and our strong gross margin performance
enabled us to meet our adjusted operating margin* expectation
although the organic sales growth* was slightly below our
expectation due to lower light vehicle production in China and North
America. Order intake continued on a high level in Passive
Safety in the quarter.
We accelerated our efforts to strengthen our foundation in
Electronics to capture growth opportunities through the strategic
agreements we announced in June and July. The agreements with
NVIDIA and Velodyne further improve our capabilities in developing
next generation self-driving technologies by accessing NVIDIA's AI
car computing platform and Velodyne's LiDAR sensing technology
while our investment in Autotech provides effective scouting of new
technologies in autonomous driving. Electronics booked a handful of
smaller orders in Active Safety in the quarter, including one new
customer and one vision order.
To meet the strong momentum in Passive Safety and Electronics,
we continue to invest in competence and capacity, and in the
ongoing competition for engineering talent, we have been able to
exceed our target of recruiting 1,000 engineers between
July 2016 and June 2017. Combined with the formation of the
Zenuity joint venture in April and the strategic agreements
announced since then, we are continuously strengthening our ability
to win new business.
We carefully monitor the readiness level for the upcoming
increase in new vehicle launches and I am pleased that they are on
track. We still see high light vehicle inventories, slow sales
momentum and continued uncertainty in China and North
America and we expect organic sales growth in the range of
0-2% for the third quarter.
Staying focused on quality, innovation and product robustness is
more important than ever as we execute on accelerating business
volumes and new opportunities, which we will elaborate on at our
Capital Markets Day on September 14,
2017."
An earnings conference call will be held at 2:00 p.m. (CET) today, July 21. 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.
This information was brought to you by Cision
http://news.cision.com
http://news.cision.com/autoliv/r/financial-report-april---june-2017,c2315171
Cathrine Stjärnekull
Director Corporate Communications
+46(0)8-587-206-81
cathrine.stjarnekull@autoliv.com
The following files are available for download:
http://mb.cision.com/Main/751/2315171/703114.pdf
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SOURCE Autoliv