STOCKHOLM, Sweden April 18, 2002 (PRIMEZONE) - Autoliv Inc.(NYSE:ALV) financial report January -- March 2002
-- Sales down 5% to $1,029 million -- Earnings before tax up 18% to $62 million -- Earnings per share up 18% to $.40 -- Strong cash generation
Autoliv Inc. (SSE: ALIV), the worldwide leader in automotive safety systems -- reported improved earnings and cash flow for the three-month period ended March 31, despite a 5% fall in sales on back of a 4% negative currency impact and 2% lower light vehicle production.
Based on the same accounting principle for both 2002 and 2001, income before taxes rose by 18% to $62 million and net income increased by 16% to $39 million. Earnings per share improved by 18% to $.40. These improvements were mainly due to the restructuring program announced in October 2001, lower material costs and lower financial net expenses. In addition, operating income and net income improved by $13 million as a result of a new accounting principle (SFAS 142).
The operations generated $113 million in cash and net debt was reduced to less than one billion.
Market Overview
During the three-month period January through March 2002, light vehicle production declined in the Triad (i.e. Europe, North America and Japan) by 2% compared to the year ago quarter.
In Western Europe, where Autoliv generates half of its revenues, vehicle production is estimated to have declined by 8% due to an earlier Easter holiday, weaker car demand and to the fact that vehicle manufacturers are continuing to reduce their inventories. Sales of light vehicles declined by 4%. However, BMW, Peugeot/Citroen and Renault -- three large Autoliv customers -- increased their sales and the new Mini, to which Autoliv is the supplier of the complete safety system, boosted BMW's sales. In Europe, therefore, the customer mix was favorable to Autoliv.
In North America, which accounts for one third of Autoliv's revenues, light vehicle production rose by 3%, from an unseasonably low level in the corresponding quarter 2001. The out come was significantly better than the 0.5% decline forecasted in January. The improvement, however, affected only the light truck segment where production rose by 9%. This segment accounts for more than 50% of the North American light vehicle production. The passenger car segment, to which Autoliv is more exposed, decreased instead by just over 2%. In North America, therefore, the vehicle mix was unfavorable to Autoliv.
In Japan, which accounts for a tenth of the Company's sales, light vehicle production increased by 1%.
The decline in light vehicle production in the Triad was off set by a continued strong demand for new safety products, such as side airbags and especially the Inflatable Curtain. This product from Autoliv and other head protection systems are now installed in more than 15% of all new vehicles. In Europe, the fitment rate for these products is approximately 30%, and in Japan, the installation rates are on a steep growth trend. In addition, the regular side airbags for chest protection have become an important sales feature. In Europe, the penetration rate for this product is 70%.
This information was brought to you by Waymaker http://www.waymaker.net
The full text report with financial tables can be found at the following URLs:
www.waymaker.net/bitonline/2002/04/18/20020418BIT00660/wkr0001.doc
www.waymaker.net/bitonline/2002/04/18/20020418BIT00660/wkr0002.pdf