Autoliv 2Q Net Loss Better Than Expected; Shares Gain
Autoliv Inc. (ALV), the world's largest maker of seat belts and
airbags, Tuesday reported a smaller-than-expected quarterly net
loss and said it expects to return to operating profitability in
the third quarter.
Investors welcomed the news. At 1017 GMT, Autoliv's shares
traded up 16.50 kronor ($2.15), or 6.9%, at SEK255, outperforming
the broader Stockholm market, which traded up 0.6%.
The Swedish-American company said it expects consolidated sales,
including negative currency effects, to fall between 20% and 25% in
the third quarter, which began July 1, due to global car production
remaining at comparatively low levels.
Despite this decline, Autoliv aims to return to making an
operating profit, excluding restructuring costs, due to its
far-reaching cost-cutting efforts. It has laid off more than 10,000
workers over the past year, almost a quarter of its workforce.
Net loss in the three-month period ended June 30 was $20.7
million, compared to a net profit of $90.4 million in the same
period a year earlier. Eleven analysts polled by Dow Jones and
FactSet on average had forecast a net loss of $56 million.
Sales fell 38% to $1.19 billion from $1.91 billion a year ago,
beating analysts' forecasts of $1.16 billion.
Autoliv also reported a $12 million operating loss, compared to
a $148 million operating profit a year ago. Analysts had forecast
an operating loss of $69 million.
Company Web site: www.autoliv.com
-By Ola Kinnander, Dow Jones Newswires; +46-8-5451-3097;