Autoliv Raises its Guidance

(Stockholm, December 11, 2009) --- Autoliv Inc. (NYSE: ALV and SSE: ALIV), the worldwide leader in automotive safety, today announced that the Company is raising its sales and margin guidance for the fourth quarter.

Autoliv now expects fourth quarter organic sales to grow by at least 20% (non-U.S. GAAP measures, see below) over the same quarter 2008 and its operating margin, excluding restructuring charges, to improve to at least 9% (non-U.S. GAAP measures). Consolidated net sales are expected to increase by at least 35%, provided that current exchange rates prevail. “There are two main reasons for our strong performance”, explains Autoliv’s CEO Jan Carlson. “Most importantly, the light vehicle sales rally in China and other emerging markets is stronger than anticipated. Additionally, our customers have had a greater need to re-build vehicle inventories to appropriate levels following the very low inventories resulting from the governmental scrapping incentive programs earlier in the year”. At the beginning of the current quarter, Autoliv expected fourth quarter consolidated net sales to increase by approximately 25% with organic sales growing by more than 10%. At the same time, the quarterly operating margin was expected to be at least 7%, excluding restructuring charges. At the beginning of the fourth quarter, full year 2009 restructuring charges was expected to amount to $100 million. The 2009 restructuring charges are now expected in the range of $120-140 million. Due to the sharp drop in light vehicle production in the beginning of this year, Autoliv expects 2009 consolidated sales to decline by more than 20%, to slightly above $5 billion. Operating margin, excluding restructuring charges, is expected to exceed 3% (non-U.S. GAAP measures). Inquiries: Jan Carlson, President and CEO, Autoliv Inc. Tel +46 8-587 20 600