STOCKHOLM, July 19, 2019 /PRNewswire/ -- Financial
highlights Q2 2019
$2,155m consolidated
sales1.5% organic sales growth*7.9% operating
margin8.5% adj. operating margin*$1.25 EPS - a decline of 43%$1.38 adj. EPS* - a decline of 38%
Full Year 2019 indications
1% to 3% organic sales growth(1)% to 1%
consolidated sales growth9.0% to 9.5% adj. operating
margin
Key business developments in the second quarter of
2019
- Organic growth outperformed global light vehicle production
by 9.1pp mainly due to Americas and China.Key
business developments in the second quarter of 2019
- Profitability continued to be impacted by severe
global LVP decline and high raw material costs.
- Accelerated cost improvement actions. Total
workforce declined by 1,208 in the quarter, mainly direct labor.
Initiated actions to reduce indirect headcount by about 5%.
Additional restructuring measures are being evaluated.
- *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 compare to the same period of previous
year, except when stated otherwise.
Key Figures
(Dollars in
millions, except per share data)
|
Q2
2019
|
Q2
2018
|
Change
|
H1
2019
|
H1
2018
|
Change
|
Net sales
|
$2,155
|
$2,212
|
(2.6)%
|
$4,329
|
$4,452
|
(2.8)%
|
Operating
income
|
$170
|
$229
|
(26)%
|
$343
|
$473
|
(28)%
|
Adjusted operating
income[1]
|
$183
|
$230
|
(20)%
|
$350
|
$475
|
(26)%
|
Adjusted operating
margin[1]
|
8.5%
|
10.4%
|
(1.9)pp
|
8.1%
|
10.7%
|
(2.6)pp
|
Earnings per share,
diluted[2], [3]
|
$1.25
|
$2.20
|
(43)%
|
$2.52
|
$4.02
|
(37)%
|
Adjusted earnings per
share, diluted[1], [2], [3]
|
$1.38
|
$2.22
|
(38)%
|
$2.57
|
$4.04
|
(36)%
|
Operating cash
flow[4]
|
$(21)
|
$201
|
(110)%
|
$133
|
$282
|
(53)%
|
Return on capital
employed[5]
|
18.3%
|
21.2%
|
(2.9)pp
|
18.9%
|
21.5%
|
(2.6)pp
|
[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 Q2 2018 and H1
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.
|
Comments from Mikael Bratt,
President & CEO
We experienced another challenging quarter dominated by severe
weakness in global light vehicle markets and high raw material
costs with reduced profitability as a consequence. The uncertainty
remains high in a falling market and we currently do not see any
signs of a turnaround in light vehicle demand. Therefore we now
indicate a lower full year 2019 sales and profitability.
As market weakness has continued in the second quarter, we have
stepped up the cost improvement actions, including targeting a
reduction of our indirect workforce by approximately 5% and
implementing a sharpened purchasing process. We already see effects
from our current cost reduction actions, with total headcount
declining by around 1,200 in the second quarter and launch related
costs continuing to decline vs. the first quarter.
I am generally pleased with how we managed the sharp decline in
global LVP by the cost reduction actions we implemented and are
planning. Furthermore, I see both room and need for additional
improvements in certain areas.
Our sales continued to develop significantly better than LVP,
with organic growth* outperforming LVP in all regions except
Japan, where we expect
outperformance to begin later in the year. In North America and China, our organic growth was 14pp higher than
LVP growth, while it was 9pp above global LVP growth.
Order intake continued on a good level, securing a strong order
book and a prolonged outperformance vs. LVP.
In addition to our near term focused cost reduction actions, we
have accelerated our efforts on building the foundation for
improving the entire value chain. This includes increased flexible
automation, digitalization and R,D&E efficiency.
We are well positioned to navigate through significant
challenges from LVP volatility and geopolitical uncertainty by
forcefully implementing necessary near-term cost reductions and
investing for longer term margin improvement, while as always
having quality as our first priority.
Conference call and webcast
An earnings conference call will be held at 2:00 p.m. CET today, July
19, 2019. Information regarding how to participate is
available on www.autoliv.com. The presentation slides for the
conference call will be available on our website shortly after the
publication of this financial report.
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
July 19, 2019.
This information was brought to you by Cision
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The following files are available for download:
https://mb.cision.com/Main/751/2866444/1079952.pdf
|
The full report
(PDF)
|