Financial Report October - December 2005

Higher Margins and Strong Cash Flow

(Stockholm, Feb. 9, 2006) – – – Despite a 5% decline in light vehicle production in Western Europe where Autoliv Inc. (NYSE: ALV and SSE: ALIV.sdb) generates more than 50% of its revenues, the Company improved its operating margin to 9.3% for the quarter ended December 31, 2005, which was better than expected and an improvement from the 8.6% recorded in the corresponding quarter 2004. The favorable comparison to last year is mainly a result of the Company’s restructuring programs. Consolidated sales decreased by 14% to $1,465 million, primarily as a result of fewer reporting days and currency effects, while organic sales declined by 4%. This was a consequence of the negative changes in West European vehicle production, since sales grew organically in all other regions. Operating income declined by 7% to $136 million and income before taxes by 5% to $131 million. However, excluding currency effects the decline in operating income was 2%, while income before taxes was unchanged despite the sales decline. Net income decreased to $70 million and earnings per share to 81 cents mainly as a result of a one-time tax effect from a Jobs Creation Act distribution. Cash flow from operations amounted to $155 million, despite voluntary pension plan contribu¬tions of $30 million. Sales for the first quarter 2006 are expected to decline by 8% due to a 5% negative currency effect and a continued negative vehicle production effect from Western Europe. Despite this sales decline, operating margin is expected to improve compared to the first quarter 2005 and operating income exceed the $129 million recorded in the same quarter 2005. An earnings conference call will be held today at 3.30 p.m. (CET); call (in Europe) +44-207-947-5033 and (in the U.S.) +1-866-432-7186 to listen in or access www.autoliv.com under Financial info

About Us

Autoliv, Inc. is the worldwide leader in automotive safety systems, and through its subsidiaries develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has more than 80 facilities with 70,000 employees in 27 countries. In addition, the Company has 22 technical centers in nine countries around the world, with 19 test tracks, more than any other automotive safety supplier. Sales in 2016 amounted to about US $10.1 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com.

Subscribe

Documents & Links