STOCKHOLM, Oct. 26, 2017 /PRNewswire/ --
For the three-month period ended September 30, 2017, Autoliv, Inc. (NYSE: ALV and
SSE: ALIV.Sdb), the worldwide leader in automotive safety systems,
reported consolidated sales of $2,500
million. Quarterly organic sales* grew by 0.5%. The reported
operating margin was 6.3% and the adjusted operating margin* was
7.9% (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 "in the range of 0-2%" and an
adjusted operating margin "in the 7.5-8.0% range."
For the fourth quarter of 2017, the Company expects organic
sales to be virtually flat and the adjusted operating margin to be
more than 9%. The consolidated sales growth is expected to be
around 4% in the fourth quarter. 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 more than 1%. (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
"The third quarter turned out essentially as we had expected. We
are in the midst of an intense period of preparing for our future
growth, while delivering at the high end of our guided margin range
for the quarter.
These preparations continues into the fourth quarter, where we
look forward to see the first step-up in growth in Passive Safety,
before gaining momentum early on in 2018. Passive Safety is
planning for a total of around 340 product launches in the
October 1, 2017 to March 31, 2018 time frame, compared to a total of
around 285 product launches in the same period a year earlier. This
is supporting the anticipated 8% CAGR from 2017 to 2020 that we
outlined at our Capital Markets Day on September 14. In the fourth quarter we expect the
ramp-up of these product launches to add more than 2pp to organic
sales growth* in Passive Safety, although this is offset in the
fourth quarter by a temporary unfavorable model mix. Order intake
continued to be strong in Passive Safety, while we are looking at a
more back end loaded order intake year for Electronics.
On September 14, we announced that
we will undertake a strategic review of our operating structure
with the intent to create two separate publicly listed companies of
our current business segments, Passive Safety and Electronics. The
review process is continuing according to plan and we expect to be
able to provide an update before year end.
At our Capital Markets Day, we outlined new financial targets,
including that Passive Safety as a standalone entity is expected to
surpass $10 billion in sales in 2020,
reaching around 13% adjusted operating margin. Electronics is
projected to reach approximately $3
billion in sales by 2020, including more than $1 billion in Active Safety sales.
Electronics continues to build a stronger position by entering
several partnerships and agreements, including with Seeing
Machines, a leader in driver monitoring systems and through an
agreement to acquire certain assets and competence from LiDAR
specialist Fotonic. Passive Safety entered a collaboration with
Adient to address the vehicle seating opportunities presented by
the future car and autonomous driving.
We continue with a clear focus on execution. Quality first, the
robustness of our products and focus on operations are more
important than ever as we deal with accelerating future business
volumes."
An earnings conference call will be held at 2:00 p.m. (CET) today, October 26. 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.
Contact:
Press office:
Autoliv
Klarabergsviadukten 70, section B7 111 64 STOCKHOLM
+46 (0)8 587 206 00
+46 (0)8 411 70 25
http://www.autoliv.com
This information was brought to you by Cision
http://news.cision.com
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The following files are available for download:
http://mb.cision.com/Main/751/2376343/742328.pdf
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