For the three-month period ended September 30, 2015, Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the worldwide leader in automotive safety systems – reported consolidated sales of $2,185 million. Quarterly organic sales* grew by 8.4%. The adjusted operating margin* was 9.4% (for non-U.S. GAAP measures see enclosed reconciliation tables).
The expectation at the beginning of the quarter was for organic sales growth of “more than 7%” and an adjusted operating margin of “around 9%”.
For the fourth quarter of 2015, the Company expects organic sales to increase by around 9% and an adjusted operating margin of around 10.5%. The expectation for the full year is for organic sales growth of around 7% and an adjusted operating margin of around 9.5%.
Comments from Jan Carlson, Chairman, President & CEO
“During the third quarter, we delivered more than 8% organic sales growth, including 36% growth in our important active safety business. The adjusted operating margin improved year-over-year to 9.4%. In addition adjusted earnings per share grew by 22%. I am pleased with Autoliv’s overall performance in the quarter.
Our strong growth outperformed the light vehicle production in all regions. We saw double digit growth in Europe, Japan and the Rest of Asia, which combined account for around half of Autoliv’s total sales. In Europe, active safety and sales of passive safety products to volume manufacturers were the strongest growth drivers.
In China, we performed better than the light vehicle production. However, given the current uncertainty, we continue to implement short term measures, including adjusting manufacturing capacity to mitigate the margin effect from fluctuating volumes. At the same time we continue to prepare for a more normalized growth situation by strengthening our engineering capabilities.
During the quarter we executed toward our mission of being the leading safety supplier for the future car. We closed the previously announced acquisition of MACOM’s automotive business and launched the important Electronic Horizon product at the ITS show in France. We signed an agreement (subject to closing) with the intent to form a joint venture in the area of brake control systems with Nissin-Kogyo. We also became a participant in the Drive Me program, a cooperation between several parties including Volvo Car Corporation, academic institutions and authorities where we will collaborate on the road to self-driving vehicles.
At our Capital Markets Day in early October, we set the course towards the end of the decade by setting our financial targets for growth, margins and earnings per share. At the event we also demonstrated our industry leading active safety portfolio which will play a vital role in delivering “Real Life Safety” in the years to come.”
An earnings conference call will be held at 2:00 p.m. (CET) today, October 23. To follow the webcast or to obtain the pin code and phone number, please access www.autoliv.com. The conference slides will be available on our web site as soon as possible following the publication of this earnings report.