Autoliv Updates its Financial Guidance
(Stockholm.- Autoliv Inc. (NYSE:ALV and SSE: ALIV) – the global leader in automotive safety systems – revises its financial guidance from July 21.
The Company now expects its operating margin excluding restructuring charges to approximate 4% for the third quarter 2009. Consolidated sales for the quarter is expected to decline in the range of 15% to 20%, provided that current currency rates prevail, with the organic sales portion declining in the range of 10% to 15%. As a consequence, Autoliv is also revising its full year guidance.
In July, Autoliv expected an operating margin in range of 1-3% excluding restructuring charges on an expected decline in consolidated sales for the third quarter of 20-25%.
For the full year, Autoliv expects – as in July – its organic sales to be 3-5 percentage points better than light vehicle production in its largest markets, North America and Western Europe. However, the customers’ light vehicle production plans for the last six months of 2009 have now been raised by four percentage points for these markets. As a result and provided that current currency exchange rates prevail, Autoliv’s sales for 2009 could reach nearly $4.9 billion despite that North American and West European light vehicle production is expected to drop by 25% for the full year.
The Company now expects its restructuring costs this year to approximate $100 million. In July, Autoliv said that it expected restructuring costs for 2009 to exceed previously announced $75 million without specifying a new amount. Despite this increase, Autoliv now believes that it could reach a break-even operating margin for the full year including restructuring charges.
In July, the Company expected an operating margin excluding restructuring charges of at least 1%.
The improved outlook for the third quarter and the full year is due to a faster recovery in light vehicle production than expected.
Autoliv will hold a Capital Markets Day tomorrow, Friday, September 18 in Frankfurt to discuss these topics. It will be possible to listen in to the presentations of Mr. Jan Carlson – the Autoliv CEO – and Mr Mats Wallin – the Autoliv CFO – by accessing www.autoliv.com. The presentations will start at approximately 8 a m (CET) on Friday September 18. Slides for both presentations will also be available for downloading from Autoliv’s corporate website.
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