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 under – News/Calendar.

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 66,000 associates in 27 countries. In addition, the Company has 12 technical centers around the world, with 19 test tracks. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on Nasdaq Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at


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