Financial Report October - December 2008

Financial Report October - December 2008

Margin Guidance Exceeded Strong Cash Flow

(Stockholm, January 29, 2009) - - - For the three-month period ended December
31, 2008, Autoliv Inc. (NYSE: ALV and SSE: ALIV) - the worldwide leader in
automotive safety systems - reported a decline in consolidated net sales of 33%
to $1,193 million including an organic sales decline of 26% compared to the same
quarter 2007. Operating margin before severance and other restructuring costs
was 1.1% (non-U.S. GAAP measure, see enclosed table). 

The sales decline was in line with the Company's revised guidance in December,
while operating income was better than the breakeven level expected. The
headcount has been reduced by 5,900 or nearly 14%, since July when the Company
announced an action program which initially targeted a headcount reduction of
3,000 by the end of 2009.

Operations continued to generate a strong cash flow of $188 million and of $110
million before financing. Net debt decreased by 7% during the quarter to $1,195
million. At the end of the year, the Company had $489 million in cash and more
than $650 million in unutilized credit facilities.

As guided, the Company reported a loss including severance and restructuring.
Operating loss was $27 million, loss before taxes $47 million, net loss $38
million and loss per share $0.55. On a comparable basis, i.e. excluding
severance and restructuring costs of $40 million, the Company reported an
operating income of $13 million, loss before taxes of $7 million, net loss of
$12 million and loss per share of $0.17 (non-U.S. GAAP measures, see enclosed
table). 

For the first quarter of 2009, the Company expects a decline in consolidated net
sales of more than 45% with organic sales declining by approximately 40% and a
negative operating margin in the range of 5 to 7% excluding restructuring costs.
 See below under “Outlook”.  

An earnings conference call will be held at 3:00 p.m. (CET) today January 29. 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”.