Financial Report January - March 2006
Net sales: down 7% to $1.6 billion Operating income: up 9% to $141 million Earnings per share: up 35% to $1.13 Operating cash flow: up 55% to $139 million (Stockholm, April 27, 2006) – – – For the quarter ended March 31, 2006, Autoliv Inc. (NYSE: ALV and SSE: ALIV) – the worldwide leader in automotive safety systems – reported record earnings per share despite a 7% decline in sales. The earnings improvement was partly due to favorable temporary tax effects and other one-time events. The 7% decline in consolidated sales to $1,568 million was primarily caused by negative currency effects of more than 5%. Operating income improved by 9% or $12 million to $141 million, despite the unfavorable currency effect. Operating income was boosted by a capital gain of $6 million. Income before taxes rose by 8% or $10 million to $133 million, while net income increased by 22% or $17 million to $95 million, partially as an effect of an exceptionally low tax rate. Earnings per share rose by 35% to $1.13. Cash flow from operations amounted to $139 million. Cash flow after investing activities amounted to $76 million, which includes $23 million from asset sales. Sales for the second quarter 2006 are expected to decreaseby approximately 8% as a consequence of an anticipated 8% drop in West European light vehicle production and a 3% negative effect from currency rate changes. Operating margin may approach the same level of 8.7% as achieved in the second quarter 2005. An earnings conference call will be held today at 3.30 p.m. (CET). To listen in, call (in Europe) +44-207-947-5033 and (in the U.S.) +1-866- 432-7186 or access www.autoliv.comunder “Financial info”.