Autoliv Inc. has a market cap of $4.62 billion; its shares were traded at around $54.1 with a P/E ratio of 17.8 and P/S ratio of 0.8. ALV is in the portfolios of Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, John Buckingham of Al Frank Asset Management, Inc., Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC.
This is the annual revenues and earnings per share of ALV over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ALV.
Highlight of Business Operations:Operating income improved by $241 million to $229 million due to the gross profit increase of $226 million and $29 million lower restructuring charges. These positive effects were partially offset by $10 million higher Research, Development and Engineering (RD&E) expense, net and $8 million higher Selling, General & Administrative (SG&A) expense. However, in relation to sales, SG&A expense was reduced to 4.5%, one of the lowest levels ever. Operating margin improved to 12.7%, which is a new all-time-high exceeding our previous record of 11.4% recorded in the first quarter this year.
Income before taxes improved by $234 million to $206 million due to the $241 million improvement in operating income. This was partially offset by an approximately $12 million negative effect from accelerated exchanges of equity units (see Other Significant Events below), while lower interest expense, net had a $4 million favorable effect.
Income before taxes increased by $517 million to $385 million due to the $526 million improvement in operating income. This improvement was partially offset by the $12 million negative effect from the equity unit exchange. Lower interest expense, net due to lower net debt had a favorable effect of $6 million.
Net income attributable to controlling interest improved by $357 million to $273 million from a loss of $84 million. Income tax expense was $110 million, net of discrete items of $4 million, resulting in an effective tax rate of 28.5%. For the six-month period last year, income taxes were a benefit of $47 million including $6 million from discrete items.
Cash flow from operations during the second quarter 2010 amounted to $251 million. This was the second highest level ever despite payments of $18 million for restructuring activities. During the same quarter 2009, cash flow was $127 million including restructuring payments of $21 million. During the first six months 2010, operations generated $400 million in cash and $249 million before financing compared to $119 million and $56 million during the first six months 2009. Capital expenditures, net amounted to $83 million and depreciation and amortization to $145 million during the first six months 2010, compared to $66 million and $150 million, respectively, last year.
Acquisitions and other, net was $9 million in the second quarter 2010, compared to divestitures of $1 million in the second quarter 2009. Capital expenditures, net of $47 million were $15 million more in the second quarter 2010 than during the same quarter 2009, but $24 million less than depreciation and amortization in the quarter.
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