Autoliv 4Q Swings To Net Loss; Little Near-Term Relief
Autoliv Inc. (ALV), the world's largest maker of seat belts and
airbags, Thursday said it swung to a net loss in the fourth quarter
as automakers around the world slashed production.
The Swedish-American company said it sees little relief in the
near term. For the first quarter of 2009 it expects net sales to
drop 45%, including a 40% decline in organic sales. It also expects
a negative operating margin of 5% to 7%, excluding restructuring
In Europe, where Autoliv generates more than half of its
revenue, light-vehicle production is estimated to have fallen
almost 30% in the fourth quarter that ended Dec. 31, the company
said. In North America, where it derives almost a quarter of its
revenue, light-vehicle production fell by 26%.
Net loss in the quarter ended Dec. 31 was $38.4 million, down
from a net profit of $94 million a year earlier. Eleven analysts
polled by Dow Jones and FactSet on average had forecast a net loss
of $17 million.
Sales fell 33% to $1.19 billion from $1.78 billion a year ago,
below analysts' forecast of $1.3 billion. The company also suffered
an operating loss of $27.3 million, down from an operating profit
of $164.1 million. Analysts had forecast an operating profit of
At 1118 GMT, Autoliv's shares traded down 2.5 Swedish kronor, or
1.6%, at SEK155.50, outperforming the broader Stockholm market,
which was down 2.5%.
Company Web site: www.autoliv.com
-By Ola Kinnander, Dow Jones Newswires; +46-8-5451-3097; email@example.com
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