Financial Report October - December 2006
Net sales: Up 9% to $1.6 billion
Operating income: Held at $136 million
Income before tax: Down 5% to $124 million
Earnings per share: Up 57% to $1.27
(Stockholm, Feb. 8, 2007) – – – During the quarter ended December 31, 2006, Autoliv Inc. (NYSE: ALV and SSE: ALIV) managed to withstand strong headwinds from the struggling automotive industry.
Consolidated sales increased by 9% to $1,602 million with the organic sales portion growing at 4% despite a 4% decrease in West European and an 8% drop in North American light vehicle production. Operating income stood unchanged at $136 million, despite 19% higher research, development and engineering expense. Income before taxes decreased by 5% to $124 million due to higher interest expense. Net income and earnings per share have been positively affected by $24 million of discrete tax items, while discrete tax items had a negative impact of $14 million in the same quarter 2005. As a con¬sequence, reported net income rose by $33 million to $103 million and reported earnings per share by 46 cents to $1.27. Adjusted net income and earnings per share, excluding the fourth quarter dis¬crete tax items in 2006, were $79 million and $0.97, respectively.
Cash flow provided by operations amounted to $157 million and $77 million before financing activities.
Consolidated sales are expected to increase by 4% for the first quarter 2007 with the organic portion growing by 1%. Organic sales for the full year are expected to grow by at least 3%. Operating margin is expected to exceed 7.5% for the quarter and 8.0% for the full year.
An earnings conference call will be held today at 3.00 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 – News/Calendar.