UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15 (d) of the
Securities and Exchange Act of 1934.
Date of Report (Date of earliest event reported) April 20, 2011
AUTOLIV, INC.
(Exact name of registrant as specified in its chapter)
Delaware | 001-12933 | 51-0378542 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
World Trade Center,
Klarabergsviadukten 70, SE-107 24
Stockholm, Sweden
(Address of principal executive offices)
Registrants telephone number, including area code +46 (0)8 587 20 600
Not Applicable
(Former name or former address, if changed since last report)
Item 2.02 Results of Operations and Financial Condition
On April 20, 2011 Autoliv, Inc. (the Company) issued a press release announcing its financial results for the first quarter of 2011. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference. This press release contains certain references to financial measures identified as organic sales, operating margin, operating working capital, net debt, leverage ratio and interest coverage ratio which are adjustments from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (GAAP). These financial measures, as used herein, differ from financial measures reported under GAAP and management believes that these financial presentations provide useful supplemental information which is important to a proper understanding of the Companys core business results by investors. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies. For an explanation of the reasons for which management uses these figures see the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2010.
Item 7.01 Regulation FD disclosure
On April 20, 2011 the Company issued a press release announcing its financial results for the first quarter of 2011. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
The information in this Form 8-K and the exhibit attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) EXHIBITS
99.1 | Press Release of Autoliv, Inc. dated April 20, 2011 reporting Autoliv, Inc.s financial results for the first quarter of 2011. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date April 20, 2011 |
AUTOLIV, INC. (Registrant) | |
/s/ Lars A. Sjöbring | ||
Lars A. Sjöbring | ||
Vice President - Legal Affairs, General Counsel and Secretary |
Exhibit 99.1
Financial Report
January - March 2011
Sales: |
$2,109 million | |
Operating margin: |
12.1% | |
EPS: |
$1.93 |
(Stockholm, April 20, 2011) For the three-month period ended March 31, 2011, Autoliv Inc. (NYSE: ALV and SSE: ALIV) the worldwide leader in automotive safety systems reported record quarterly sales, operating income, net income and earnings per share.
Compared to the same quarter 2010, consolidated net sales increased by 23% to $2,109 million with the organic sales portion growing at a rate of 14%, significantly outperforming global light vehicle production (LVP) which grew by 5%.
Operating income improved by 30% to $255 million, income before taxes by 34% to $240 million, net income by 42% to $182 million and earnings per share assuming dilution by 39% to $1.93.
Operating margin increased to 12.1% from 11.4% for the same quarter 2010.
Cash flow from operations amounted to $141 million and to $63 million before financing.
For the second quarter of 2011, the Company expects organic sales to be flat as compared to the same quarter 2010 and consolidated net sales to rise by approximately 9%. An operating margin of around 9% is expected for the quarter. For the full year, the current indications are a sales increase of approximately 15% with organic sales growing by about 8% and an operating margin of around 11.5%. These forecasts are uncertain due to the difficulties in predicting disruptions at vehicle assembly lines due to unexpected component shortages after the earthquake in Japan.
An earnings conference call will be held at 3:00 p.m. (CET) today April 20. To follow the webcast or to obtain your pin code and phone number, please access www.autoliv.com.
Q1 Report 2011
Q1 Report 2011
Q1 Report 2011
Q1 Report 2011
Q1 Report 2011
KEY RATIOS
Quarter January-March | Latest 12 Months | Full Year | ||||||||||||||
2011 | 2010 | April 10 March 11 | 2010 | |||||||||||||
Earnings per share, basic |
$ | 2.04 | $ | 1.48 | $ | 7.31 | $ | 6.77 | ||||||||
Earnings per share, diluted 1) |
$ | 1.93 | $ | 1.39 | $ | 6.94 | $ | 6.39 | ||||||||
Total parent shareholders equity per share |
34.76 | 29.24 | 34.76 | 32.89 | ||||||||||||
Cash dividend paid per share |
0.40 | | 1.05 | 0.65 | ||||||||||||
Operating working capital, $ in millions 2) |
513 | 426 | 513 | 388 | ||||||||||||
Capital employed, $ in millions 3) |
3,243 | 3,153 | 3,243 | 3,066 | ||||||||||||
Net debt, $ in millions 2) |
129 | 619 | 129 | 127 | ||||||||||||
Net debt to capitalization, % 4) |
4 | 20 | 4 | 4 | ||||||||||||
Gross margin, % 5) |
22.1 | 22.3 | 22.2 | 22.2 | ||||||||||||
Operating margin, % 6) |
12.1 | 11.4 | 12.3 | 12.1 | ||||||||||||
Return on total equity, % 7) |
24.1 | 20.6 | 23.2 | 22.3 | ||||||||||||
Return on capital employed, % 8) |
32.5 | 24.9 | 29.9 | 28.2 | ||||||||||||
Average no. of shares in millions 1) |
93.9 | 90.8 | 93.0 | 92.4 | ||||||||||||
No. of shares at period-end in millions 9) |
89.2 | 85.3 | 89.2 | 89.0 | ||||||||||||
No. of employees at period-end |
35,531 | 31,010 | 35,531 | 34,590 | ||||||||||||
Headcount at period-end10) |
45,729 | 39,699 | 45,729 | 43,325 | ||||||||||||
Days receivables outstanding 11) |
70 | 72 | 77 | 69 | ||||||||||||
Days inventory outstanding 12) |
29 | 32 | 33 | 32 |
1) | Assuming dilution and net of treasury shares. |
2) | Non-GAAP measure; for reconciliation see enclosed tables below. |
3) | Total equity and net debt. |
4) | Net debt in relation to capital employed. |
5) | Gross profit relative to sales. |
6) | Operating income relative to sales. |
7) | Net income relative to average total equity. |
8) | Operating income and equity in earnings of affiliates, relative to average capital employed. |
9) | Excluding dilution and net of treasury shares. |
10) | Includes temporary hourly personnel. |
11) | Outstanding receivables relative to average daily sales. |
12) | Outstanding inventory relative to average daily sales. |
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share data)
Quarter January - March | Latest 12 Months | Full Year | ||||||||||||||
2011 | 2010 | April 10 March 11 | 2010 | |||||||||||||
Net sales |
||||||||||||||||
- Airbag products |
$ | 1,385.4 | $ | 1,126.8 | $ | 4,981.1 | $ | 4,722.5 | ||||||||
- Seatbelt products |
686.3 | 574.8 | 2,474.9 | 2,363.4 | ||||||||||||
- Active safety products |
36.9 | 19.2 | 102.4 | 84.7 | ||||||||||||
Total net sales |
2,108.6 | 1,720.8 | 7,558.4 | 7,170.6 | ||||||||||||
Cost of sales |
(1,642.6 | ) | (1,337.3 | ) | (5,883.8 | ) | (5,578.5 | ) | ||||||||
Gross profit |
466.0 | 383.5 | 1,674.6 | 1,592.1 | ||||||||||||
Selling, general & administrative expenses |
(90.9 | ) | (81.1 | ) | (337.0 | ) | (327.2 | ) | ||||||||
Research, development & engineering expenses, net |
(114.5 | ) | (91.6 | ) | (384.2 | ) | (361.3 | ) | ||||||||
Amortization of intangibles |
(3.7 | ) | (4.3 | ) | (17.4 | ) | (18.0 | ) | ||||||||
Other income (expense), net |
(2.1 | ) | (11.1 | ) | (7.4 | ) | (16.4 | ) | ||||||||
Operating income |
254.8 | 195.4 | 928.6 | 869.2 | ||||||||||||
Equity in earnings of affiliates, net of tax |
1.3 | (1.2 | ) | 8.0 | 5.5 | |||||||||||
Interest income |
0.9 | 0.8 | 3.5 | 3.4 | ||||||||||||
Interest expense |
(15.4 | ) | (14.5 | ) | (55.2 | ) | (54.3 | ) | ||||||||
Loss on extinguishment of debt |
| | (12.3 | ) | (12.3 | ) | ||||||||||
Other financial items, net |
(1.8 | ) | (1.3 | ) | (6.5 | ) | (6.0 | ) | ||||||||
Income before income taxes |
239.8 | 179.2 | 866.1 | 805.5 | ||||||||||||
Income taxes |
(57.3 | ) | (51.0 | ) | (216.3 | ) | (210.0 | ) | ||||||||
Net income |
$ | 182.5 | $ | 128.2 | $ | 649.8 | $ | 595.5 | ||||||||
Less; Net income attributable to non-controlling interests |
1.0 | 1.7 | 4.2 | 4.9 | ||||||||||||
Net income attributable to controlling interests |
$ | 181.5 | $ | 126.5 | $ | 645.6 | $ | 590.6 | ||||||||
Earnings per share 1) |
$ | 1.93 | $ | 1.39 | $ | 6.94 | $ | 6.39 |
1) | Assuming dilution and net of treasury shares. |
Q1 Report 2011
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
Assets |
||||||||||||||||||||
Cash & cash equivalents |
$ | 605.2 | $ | 587.7 | $ | 487.2 | $ | 459.4 | $ | 302.3 | ||||||||||
Receivables, net |
1,625.2 | 1,367.6 | 1,453.1 | 1,358.9 | 1,315.4 | |||||||||||||||
Inventories, net |
609.1 | 561.7 | 564.3 | 505.7 | 510.0 | |||||||||||||||
Other current assets |
185.1 | 171.6 | 166.9 | 131.5 | 161.3 | |||||||||||||||
Total current assets |
3,024.6 | 2,688.6 | 2,671.5 | 2,455.5 | 2,289.0 | |||||||||||||||
Property, plant & equipment, net |
1,075.6 | 1,025.8 | 1,016.8 | 962.1 | 1,012.2 | |||||||||||||||
Investments and other non-current assets |
231.6 | 228.1 | 226.2 | 227.6 | 228.9 | |||||||||||||||
Goodwill assets |
1,620.7 | 1,612.3 | 1,615.1 | 1,601.2 | 1,610.1 | |||||||||||||||
Intangible assets, net |
106.8 | 109.7 | 114.0 | 117.3 | 122.2 | |||||||||||||||
Total assets |
$ | 6,059.3 | $ | 5,664.5 | $ | 5,643.6 | $ | 5,363.7 | $ | 5,262.4 | ||||||||||
Liabilities and equity |
||||||||||||||||||||
Short-term debt |
$ | 107.1 | $ | 87.1 | $ | 156.2 | $ | 169.6 | $ | 134.5 | ||||||||||
Accounts payable |
1,130.9 | 1,003.1 | 981.1 | 948.4 | 873.0 | |||||||||||||||
Other current liabilities |
809.8 | 744.3 | 774.1 | 675.7 | 691.0 | |||||||||||||||
Total current liabilities |
2,047.8 | 1,834.5 | 1,911.4 | 1,793.7 | 1,698.5 | |||||||||||||||
Long-term debt |
639.9 | 637.7 | 680.0 | 708.8 | 792.5 | |||||||||||||||
Pension liability |
140.2 | 136.0 | 118.3 | 113.4 | 113.5 | |||||||||||||||
Other non-current liabilities |
117.8 | 117.1 | 126.8 | 126.3 | 124.4 | |||||||||||||||
Total non-current liabilities |
897.9 | 890.8 | 925.1 | 948.5 | 1,030.4 | |||||||||||||||
Total parent shareholders equity |
3,100.6 | 2,927.3 | 2,798.0 | 2,617.6 | 2,494.0 | |||||||||||||||
Non-controlling interest |
13.0 | 11.9 | 9.1 | 3.9 | 39.5 | |||||||||||||||
Total equity |
3,113.6 | 2,939.2 | 2,807.1 | 2,621.5 | 2,533.5 | |||||||||||||||
Total liabilities and equity |
$ | 6,059.3 | $ | 5,664.5 | $ | 5,643.6 | $ | 5,363.7 | $ | 5,262.4 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
Quarter January - March | Latest 12 months | Full Year | ||||||||||||||
2011 | 2010 | April 10 March 11 | 2010 | |||||||||||||
Net income |
$ | 182.5 | $ | 128.2 | $ | 649.8 | $ | 595.5 | ||||||||
Depreciation and amortization |
65.4 | 73.4 | 273.7 | 281.7 | ||||||||||||
Other, net |
2.4 | 24.3 | 35.8 | 57.7 | ||||||||||||
Changes in operating assets and liabilities |
(108.9 | ) | (77.0 | ) | (42.4 | ) | (10.5 | ) | ||||||||
Net cash provided by operating activities |
141.4 | 148.9 | 916.9 | 924.4 | ||||||||||||
Capital expenditures, net |
(80.1 | ) | (36.1 | ) | (268.4 | ) | (224.4 | ) | ||||||||
Acquisitions of businesses and other, net |
1.9 | (59.6 | ) | (11.3 | ) | (72.8 | ) | |||||||||
Net cash used in investing activities |
(78.2 | ) | (95.7 | ) | (279.7 | ) | (297.2 | ) | ||||||||
Net cash before financing 1) |
63.2 | 53.2 | 637.2 | 627.2 | ||||||||||||
Net increase (decrease) in short-term debt |
9.8 | (182.0 | ) | (86.8 | ) | (278.6 | ) | |||||||||
Issuance of long-term debt |
| | 19.8 | 19.8 | ||||||||||||
Repayments and other changes in long-term debt |
| (29.2 | ) | (141.6 | ) | (170.8 | ) | |||||||||
Dividends paid |
(35.6 | ) | | (93.3 | ) | (57.7 | ) | |||||||||
Cash paid for extinguishment of debt |
| | (8.3 | ) | (8.3 | ) | ||||||||||
Common stock options exercised |
7.1 | 3.5 | 32.8 | 29.2 | ||||||||||||
Acquisition of subsidiary shares from non- controlling interests |
| (13.3 | ) | (50.4 | ) | (63.7 | ) | |||||||||
Capital contribution from non-controlling interests |
| | 1.2 | 1.2 | ||||||||||||
Effect of exchange rate changes on cash |
(27.0 | ) | (2.6 | ) | (7.7 | ) | 16.7 | |||||||||
Increase (decrease) in cash and cash equivalents |
17.5 | (170.4 | ) | 302.9 | 115.0 | |||||||||||
Cash and cash equivalents at period-start |
587.7 | 472.7 | 302.3 | 472.7 | ||||||||||||
Cash and cash equivalents at period-end |
$ | 605.2 | $ | 302.3 | $ | 605.2 | $ | 587.7 |
1) | Non GAAP measure comprised of Net cash provided by operating activities and Net cash used in investing activities. |
Q1 Report 2011
RECONCILIATION OF NON-U.S. GAAP MEASURES TO U.S. GAAP
(Dollars in millions, except per share data)
In this report we sometimes refer to non-U.S. GAAP measures that we and securities analysts use in measuring Autolivs performance. We believe that these measures assist investors and management in analyzing trends in the Companys business for the reasons given below. Investors should not consider these non-U.S. GAAP measures as substitutes, but rather as additions to, financial reporting measures prepared in accordance with U.S. GAAP. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.
OPERATING WORKING CAPITAL
Due to the need to optimize cash generation to create value for shareholders, management focuses on operationally derived working capital as defined in the table below. The reconciling items used to derive this measure are, by contrast, managed as part of our overall management of cash and debt, but they are not part of the responsibilities of day-to-day operations management.
March 31 2011 |
December 31 2010 |
September 30 2010 |
June 30 2010 |
March 31 2010 |
||||||||||||||||
Total current assets |
$ | 3,024.6 | $ | 2,688.6 | $ | 2,671.5 | $ | 2,455.5 | $ | 2,289.0 | ||||||||||
Total current liabilities |
(2,047.8 | ) | (1,834.5 | ) | (1,911.4 | ) | (1,793.7 | ) | (1,698.5 | ) | ||||||||||
Working capital |
976.8 | 854.1 | 760.1 | 661.8 | 590.5 | |||||||||||||||
Cash and cash equivalents |
(605.2 | ) | (587.7 | ) | (487.2 | ) | (459.4 | ) | (302.3 | ) | ||||||||||
Short-term debt |
107.1 | 87.1 | 156.2 | 169.6 | 134.5 | |||||||||||||||
Derivative asset and liability, current |
(4.1 | ) | (0.7 | ) | 6.9 | 7.7 | 2.8 | |||||||||||||
Dividends payable |
38.3 | 35.6 | 31.0 | 25.6 | | |||||||||||||||
Operating working capital |
$ | 512.9 | $ | 388.4 | $ | 467.0 | $ | 405.3 | $ | 425.5 |
NET DEBT
As part of efficiently managing the Companys overall cost of funds, we routinely enter into debt-related derivatives (DRD) as part of our debt management. Creditors and credit rating agencies use net debt adjusted for DRD in their analyses of the Companys debt. By adjusting for DRD, the total economic liability of net debt is disclosed without grossing it up with currency or interest fair market values that are offset by DRD reported in other balance sheet captions.
March 31 2011 |
December 31 2010 |
September 30 2010 |
June 30 2010 |
March 31 2010 |
||||||||||||||||
Short-term debt |
$ | 107.1 | $ | 87.1 | $ | 156.2 | $ | 169.6 | $ | 134.5 | ||||||||||
Long-term debt |
639.9 | 637.7 | 680.0 | 708.8 | 792.5 | |||||||||||||||
Total debt |
747.0 | 724.8 | 836.2 | 878.4 | 927.0 | |||||||||||||||
Cash and cash equivalents |
(605.2 | ) | (587.7 | ) | (487.2 | ) | (459.4 | ) | (302.3 | ) | ||||||||||
Debt-related derivatives |
(12.4 | ) | (10.0 | ) | (11.2 | ) | (2.2 | ) | (5.4 | ) | ||||||||||
Net debt |
$ | 129.4 | $ | 127.1 | $ | 337.8 | $ | 416.8 | $ | 619.3 |
COMPONENTS IN SALES INCREASE/DECREASE
Since the Company generates almost 80% of sales in currencies other than in the reporting currency (i.e. U.S. dollars) and currency rates have proven to be very volatile, and due to the fact that the Company has historically made several acquisitions and divestitures, we analyze the Companys sales trends and performance as changes in organic sales growth. This presents the increase or decrease in the overall U.S. dollar net sales on a comparable basis, allowing separate discussions of the impact of acquisitions/divestitures and exchange rates. The tabular reconciliations below presents changes in organic sales growth as reconciled to the change in total U.S. GAAP net sales.
Quarter January - March
Europe | Americas | Japan | China | RoA | Total | |||||||||||||||||||||||||||||||||||||||||||
% | $ | % | $ | % | $ | % | $ | % | $ | % | $ | |||||||||||||||||||||||||||||||||||||
Organic change |
11.1 | $ | 81.3 | 27.0 | $ | 140.9 | (14.7 | ) | $ | (28.4 | ) | 22.6 | $ | 39.6 | 10.3 | $ | 9.8 | 14.1 | $ | 243.2 | ||||||||||||||||||||||||||||
Currency effects |
0.9 | 6.5 | 1.5 | 7.9 | 10.2 | 19.7 | 3.8 | 6.6 | 2.9 | 2.7 | 2.5 | 43.4 | ||||||||||||||||||||||||||||||||||||
Acquisitions/divestitures |
0.4 | 3.2 | | | | | 4.8 | 8.4 | 94.0 | 89.6 | 5.9 | 101.2 | ||||||||||||||||||||||||||||||||||||
Reported change |
12.4 | $ | 91.0 | 28.5 | $ | 148.8 | (4.5 | ) | $ | (8.7 | ) | 31.2 | $ | 54.6 | 107.2 | $ | 102.1 | 22.5 | $ | 387.8 |