For the three month period ended June 30, 2013, Autoliv Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the world leader in automotive safety – reported consolidated sales of $2,198 million, an operating margin, excluding costs for antitrust investigations and capacity alignments, of 9.1%, and an organic sales growth of close to 6% (non-U.S. GAAP measure, see enclosed reconciliation table).
Cash flow from operations was $192 million and operating income was $194 million, including $6 million in costs for antitrust investigations and capacity alignment. Income before taxes was $193 million and net income was $139 million. Earnings Per Share (EPS) grew by 8% to $1.44, assuming dilution.
For the third quarter, Autoliv’s organic sales are expected to grow by close to 6%. The operating margin is expected to be around 8.5%, excluding costs for antitrust investigations and capacity alignments.
The indication for 2013 full year organic sales growth is now around 4%, reaching the upper end of the previously communicated range of 2 to 4%. The operating margin indication of around 9%, excluding costs for antitrust investigations and capacity alignments, is unchanged.
Comments from Jan Carlson, President and CEO
“Autoliv had a solid quarter achieving record sales and a solid operating margin. The global vehicle production developed slightly better than anticipated, and through good execution, and high deliveries to well performing vehicle platforms we were able to benefit from the increase. During the quarter Autoliv held a Capital Market Day outlining future strategies for growth, and it is especially pleasing to see the key strategic growth areas of active safety, and new growth markets, specifically China, performing well.
In our new growth area of active safety, organic sales grew by more than 70%. This strong performance gives further confidence that we are on track to achieve our target of $500 million in active safety sales in 2015. We also continue to benefit from our long-term presence in China. We had another quarter with double digit sales growth, largely driven by the Chinese OEMs. This focus on safety from leading Chinese car manufacturers is an important trend for the future and Autoliv is well positioned to continue to benefit from it.
European sales in the quarter were stronger than expected, driven by an unexpected increase in vehicle production and high sales to premium European car makers. However, we remain cautious regarding Europe, as we don’t see any improvement in vehicle production or overall economic recovery in the region and the adjustment of our European production footprint is taking longer than previously expected.
We enter the second half of the year guided by our business plan outlined at the Capital Market Day in May and with a sharp focus on continued execution of our strategies.”
An earnings conference call will be held at 2:30 p.m. (CET) today, July 19. To follow the webcast, or obtain the pin code and phone number, please access www.autoliv.com. The conference call slides will be available on our web site as soon as possible following the publication of this earnings report.