Financial Report July - September 2008

Financial Report July - September 2008

Margin guidance achieved despite tougher market 

(Stockholm, October 21, 2008) - - - For the quarter ended September 30, 2008,
Autoliv Inc. (NYSE: ALV and SSE: ALIV) - the worldwide leader in automotive
safety systems -reported an operating margin before severance and other
restructuring costs of 5.9% (Non U.S. GAAP measure, see enclosed table) compared
to expected 5% at the beginning of the quarter. This was due to currency
transaction effects and the Company's internal actions which more than offset a
negative impact from a 5 percentage point lower-than-expected global light
vehicle production. 

The significant cuts in North American and West European vehicle production
caused consolidated sales to decline by 1% to $1,545 million and organic sales
to decrease by 7%. 

Operating income for the quarter was $58 million, operating margin 3.8%, income
before taxes $47 million, net income $31 million and earnings per share $0.44.
On a comparable basis, i.e. excluding severance and restructuring cost in both
years, operating income amounted to $91 million compared to $117 million in the
same quarter 2007; operating margin amounted to 5.9% compared to 7.5%; net
income to $55 million compared to $68 million and earnings per share to $0.76
compared to $0.87. 
As a result of efficient working capital controls, operations generated $102
million in cash.
Due to the recent cuts in light vehicle production plans by automakers triggered
by the financial turmoil, Autoliv is changing its guidance for the year, see
below under “Outlook”.

An earnings conference call will be held at 3:00 p.m. (CET) today October 21. To
listen in, call (in Europe) +44-203-003-2665 and (in the U.S.) +1-866-966-5335
or access www.autoliv.com under “News/Calendar”.