STOCKHOLM, April 26, 2019 /PRNewswire/ --
(NYSE: ALV) (SSE: ALIV.Sdb)
Q1 2019: Challenging market conditions
Financial highlights Q1 2019
$2,174m consolidated
sales
1.8% organic sales growth*
8.0% operating margin
7.7% adj. operating margin*
$1.27 EPS - a decline of
30%
$1.20 adj. EPS* - a
decline of 34%
Full Year 2019 indications
Around 5% organic sales growth
Around 3% total sales growth
Around 10.5% adj. operating margin
Key business developments in the first quarter of 2019
- Organic growth outpaced global light vehicle production by
8.6pp mainly due to Americas and China.
- Profitability impacted by the largest global LVP
decline (~7%) in a decade, a labor conflict and rising raw
materials costs.
- The labor conflict in Mexico caused temporary costs of
>$20m. Issue resolved and
production returning to normal levels.
*For non-U.S. GAAP measures see enclosed reconciliation
tables. All figures herein refer to continued operations, excluding
former Electronics segment, unless stated otherwise. All change
figures in this document compares to the same period of previous
year, except when stated otherwise.
Key Figures
(Dollars in
millions, except per share data)
|
Q1
2019
|
Q1
2018
|
Change
|
Net sales
|
$2,174
|
$2,241
|
(3.0)%
|
Operating
income
|
$173
|
$243
|
(29)%
|
Adjusted operating
income1)
|
$166
|
$245
|
(32)%
|
Adjusted operating
margin1)
|
7.7%
|
10.9%
|
(3.2)pp
|
Earnings per share,
diluted2, 3)
|
$1.27
|
$1.82
|
(30)%
|
Adjusted earnings per
share, diluted1, 2, 3)
|
$1.20
|
$1.83
|
(34)%
|
Operating cash
flow4)
|
$154
|
$81
|
90%
|
Return on capital
employed5, 6)
|
19.6%
|
n/a
|
n/a
|
1) Excluding costs
for capacity alignment and antitrust related matters. 2) Assuming
dilution and net of treasury shares. 3) Participating share awards
with right to receive dividend equivalents are (under the two-class
method) excluded from the EPS calculation. 4) For Q1 2018
management estimate for Continuing Operations derived from cash
flow including Discontinued Operations. 5) Operating income and
income from equity method investments, relative to average capital
employed. 6) The Company has decided not to recalculate the prior
period since the distribution of Veoneer had a significant impact
on total equity and capital employed making the comparison less
meaningful.
|
Comments from Mikael Bratt,
President & CEO
Our people did well managing the
largest quarterly light vehicle market decline in a decade, and
consequently the quarter developed in line with our expectations,
excluding the effects of the labor conflict in Mexico.
Despite the unforeseen labor conflict related costs and weak LVP
trend, we are able to reiterate our full year profitability
indication as we aim to meet these challenges with cost reductions,
including a hiring freeze and other measures.
Our sales strongly outpaced light vehicle production thanks to our
performance in Americas and China.
The sharp decline in LVP was more than offset by continued growth
from new launches and we were able to grow sales organically* by
almost 2%. However, profitability was negatively affected by the
mix impact of LVP driven sales decline for established business and
sales growth coming from new launches, as profitability on new
launches is initially lower until production is fully ramped up to
the designed line capacity.
We saw a clear improvement in launch related costs compared to the
fourth quarter of 2018, although we still expect it will take a few
more quarters to be back at a normal launch cost level.
Our order intake share remained at a good level although OEM order
activity was relatively modest in the quarter.
I am pleased that the labor conflict in Mexico is closed, with only limited production
back-log effects remaining, although we are of course never
satisfied when disturbances brings negative impacts on us and our
customers.
With the EC antitrust decision behind us, we continue to focus on
launch effectiveness, productivity and managing light vehicle
production volatility, while, as always, having quality as our
first priority.
Inquiries: Investors and Analysts
Anders Trapp
Vice President Investor Relations
Tel +46 (0)8 58-72-06-71
Henrik Kaar
Director Investor Relations
Tel +46 (0)8-58-72-06-14
Inquiries: Media
Stina Thorman
Vice President Communications
Tel +46 (0)8 58-72-06-50
This information is information that Autoliv, Inc. is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the VP of Investor Relations set out above, at 12.00 CET on
April 26, 2019
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/autoliv/r/financial-report-january---march-2019,c2797987
The following files are available for download:
https://mb.cision.com/Main/751/2797987/1032850.pdf
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The full report
(PDF)
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