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Autoliv Inc. (ALV) filed Quarterly Report for the period ended 2011-09-30.
Autoliv Inc. has a market cap of $5.27 billion; its shares were traded at around $59.03 with a P/E ratio of 8.5 and P/S ratio of 0.7. The dividend yield of Autoliv Inc. stocks is 3.1%. Autoliv Inc. had an annual average earning growth of 2.5% over the past 10 years.
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:
In The Americas, which accounts for slightly more than 30% of consolidated sales, LVP increased by 5%. Ford, Chrysler and General Motors (GM) raised their North American production by 12%, 10% and 5%, respectively. The Asian and European vehicle manufacturers increased LVP by 2% in North America. At the beginning of the third quarter, these manufacturers expected to increase their North American production by 4%.Sales from Autoliv’s companies in the Rest of Asia (RoA) increased by 30% to $210 million, compared to the same quarter in 2010. Currency effects added 8%, while a divestiture of certain non-core assets had a 2% negative impact. Organic sales (non-U.S. GAAP measure, see table above) growth of 24% was almost three times as high as the 8% increase in the region’s LVP. In South Korea, organic sales (non-U.S. GAAP measure, see table above) grew by 38%, substantially exceeding the 8% growth in the country’s LVP. Autoliv’s sales were driven by GM’s new Gentra and Hyundai’s new Veloster and by higher production volumes for Hyundai’s Verna, ix35 and Santa Fe and KIA’s Sportage and Sorento.
Operating income increased by $3 million to $205 million, compared to the same quarter in 2010. Most of the $37 million improvement in gross profit was offset by a $15 million higher Research, Development and Engineering (R,D&E) expense, net and a $15 million higher Selling, General & Administrative (S,G&A) expense, partially due to currency translation effects. In addition, legal expenses were $5 million higher due to the ongoing antitrust investigations. However, in relation to sales, R,D&E expense, net stood unchanged at 5.1% despite significantly more R,D&E projects especially in active safety, while S,G&A rose only marginally to 4.5% from an exceptionally low level due to a positive one-time effect in the same quarter in 2010. Operating margin declined to 10.2% from 11.6%. Expenses related to the antitrust investigations (reported in Other expense) reduced the operating margin by 0.2 percentage points.
Net income attributable to controlling interest improved by 13%, or $52 million, to $465 million. Income tax expense was $150 million, including favorable discrete tax items of $19 million, net which was mainly due to the $24 million release of tax reserves in the second quarter. The effective tax rate was 24.3% compared to 27.5% for the nine-month period last year.
Despite $114 million in dividend payments, net debt decreased by $86 million during the nine-month period from $127 million at the beginning of the period to $41 million. Gross interest-bearing debt decreased by $23 million to $702 million. Net debt to capitalization declined to 1% from 4% at the end of 2010.
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