Autoliv Upgrades Forecasts After Improved 3Q Light-Vehicle Output
Autoliv Inc. (ALV), the world's largest supplier of car airbags
and seatbelts, Thursday increased its earnings forecasts for the
rest of the year after better-than-expected sales in the third
quarter due to a recovery in light-vehicle production.
The Swedish-American company, which supplies customers such as
Ford Motor Co. (F), Volkswagen AG (VOW.XE) and General Motors Co.,
said full-year sales could reach nearly $4.9 billion despite an
expected 25% drop in North American and West European light-vehicle
The company said its operating margin, excluding restructuring
charges, is expected to be 4% for the third quarter of 2009, up
from 1% to 3% forecast in July. Consolidated sales for the quarter
are expected to decline by 15% to 20%, instead of 20% to 25%,
provided current currency-exchange rates prevail. Organic sales are
expected to decline by 10% to 15%.
Autoliv said it expects restructuring costs of $100 million. In
July, Autoliv said that it expected restructuring costs for 2009 to
exceed the $75 million it had announced previously without
specifying a new amount. Despite this increase, Autoliv said it now
believes that it could reach a break-even operating margin for the
full year, including restructuring charges.
Autoliv said in December last year that it had cut 5,900 jobs,
or 14% of its workforce, in a cost-cutting program initiated in
July. The measures aimed to save $120 million in 2010 at an initial
cost estimate of $75 million.
Autoliv shares gained as much as 3% after the news, but, at 1107
GMT, the stock traded up 0.50 Swedish kronor, or 0.2%, at
Company Web site: www.autoliv.com
-By Ian Edmondson, Dow Jones Newswires; +46-8-5451-3094;