STOCKHOLM, Feb 02, 2017 /PRNewswire/ --
Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the worldwide
leader in automotive safety systems – reported record consolidated
sales of $10,074 million in 2016 and
the Company increased its R,D&E efforts for future growth while
indicating 2017 adjusted operating margin in line with its long
term target range.
For the three-month period ended December
31, 2016, the Company reported record sales of $2,604 million. Quarterly organic sales* grew by
1.1% (for non-U.S. GAAP measures see enclosed reconciliation
tables). The fourth quarter of 2016 included approximately three
less working days compared to 2015, decreasing the year-over-year
organic growth* by around 5pp. On an equivalent basis the organic
growth* was around 6%. Operating margin was 9.2%. The adjusted
operating margin* was 9.3%. The expectation at the beginning of the
quarter was for quarterly organic sales to be "flat" and an
adjusted operating margin of "more than 9%".
For the first quarter of 2017, the Company expects organic sales
to increase by more than 3% and an adjusted operating margin of
around 8%. The expectation for the full year is for organic sales
growth of around 4% and an adjusted operating margin of around
8.5%. R,D&E investments, net is expected to be at the high end
of the 6.5-7.0% of sales range, a significant year-over-year
increase. (See the "Outlook" section on the next page for further
discussion of organic sales and adjusted operating margin, which
are forward-looking non-U.S. GAAP measures).
Key Figures
For Key Figures summary table, please refer to attached file
below.
Comments from Jan Carlson,
Chairman, President & CEO
"The fourth quarter developed largely in line with our
expectations. I am particularly pleased with our growth in
Asia, where we, for the first
time, recorded sales above $1 billion
for a quarter.
Regionally, the light vehicle production in China grew by almost 15% in the quarter and we
grew particularly well with the domestic OEMs. For the full year,
our organic growth* in China was
in line with the strong light vehicle production growth. North
American light vehicle production grew modestly in the quarter,
while our growth was hampered by lower sales of replacement
inflators and an unfavorable model mix. European light vehicle
production continued to grow from a high level.
In active safety, we are pleased that we recorded double
digit sales growth in the quarter for our core products radar and
vision, although this was offset by declines in sales of non-core
products. The strength of our offering in active safety was
reflected in that both our order intake and win rate for active
safety products increased substantially for the full year. We are
also pleased that we won an Autoliv software based vision contract
with a new Europe-based premium
OEM. By signing a definitive agreement to form the joint venture
Zenuity with Volvo Cars, we are creating a solid platform for
developing software for autonomous driving and driver assistance
systems. Autoliv-Nissin Brake Systems is expanding its customer
base, winning a $1.1 billion total
contract value for our new braking system with a Detroit-based OEM on a major platform.
Passive Safety recorded its highest order intake ever in
2016, winning about 50% of available order value for the second
consecutive year. We remain confident that we are on the right path
to surpass our $12 billion corporate
sales target for 2019.
We are pleased that we in 2016 were able to manage
unprecedented order intake levels that generate high levels of
investments and costs for growth, and still deliver a strong cash
flow and an adjusted operating margin within our long term target
range. We continue to monitor the overall macro- and industry
situation and we are ready to take necessary actions while focusing
on executing on our growth strategy with continued quality
focus."
An earnings conference call will be held at 3:00 p.m. (CET) today, February 2. 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.
CONTACT:
Press office,
Klarabergsviadukten 70, section B7 111 64 STOCKHOLM,
Tel: +46-8-58-72-06-00 or +46-8-411-70-25
http://www.autoliv.com
This information was brought to you by Cision
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SOURCE Autoliv