UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 16, 2013
Autoliv, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 001-12933 | 51-0378542 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Vasagatan 11, 7th Floor, SE-111 20
Box 70381,
SE-107 24, Stockholm, Sweden
(Address of principal executive offices, including zip code)
+46 8 587 20 600
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 | Entry into a Material Definitive Agreement |
On July 19, 2013, Autoliv, Inc. (the Company) issued a press release announcing that the European Investment Bank (EIB) and Autoliv AB, a Swedish subsidiary of the Company, have signed a financing commitment agreement dated July 16, 2013, giving Autoliv AB access to a loan of 200 million (approximately U.S. $260 million). The funds, if utilized, should help finance research and development projects over the next three years at Autolivs R&D facilities in Germany, France and Sweden. The projects to receive EIB funding generally relate to a wide range of innovative passive and active safety technologies for motor vehicles aiming at the enhancement of vehicle occupants and pedestrians safety.
Under the financing commitment, Autoliv AB may, during the next 18-month period, draw loans with a maturity of up to 7 years. The loans may be drawn in up to four separate tranches, with a minimum borrowing amount for each tranche of 50 million or, if less than 50 million remains under the commitment, the remaining balance of the financing commitment. The loans may be drawn in either fixed rate or floating rate tranches at the election of Autoliv AB. Fixed rate tranches will be repaid to the EIB at an interest rate of 26 basis points (0.26%). Floating rate tranches will be repaid to the EIB at a floating rate equal to the relevant interbank rate (which under the commitment may be any of EURIBOR, LIBOR or STIBOR) plus a spread to be determined at the time of the draw under the commitment. Autoliv AB has the option to revise or convert the interest basis of a tranche to either fixed or floating depending on the circumstances upon request. In addition to the interest payable on each tranche, Autoliv AB is required to pay a non-utilization fee of 0.13% on the undrawn, uncancelled balance of the credit.
The financial obligations of the financing commitment agreement, including repayment of any funds, are guaranteed by the Company pursuant to a Guarantee Agreement between the EIB and the Company. As with all of the existing principal debt arrangements of the Company, the new financial commitment does not have any financial covenants, i.e. performance-related restrictions.
The portion of the press release under the heading Other Significant Events relating to the EIB financing commitment included as Exhibit 99.1 to this report is incorporated herein by reference.
Item 2.02 | Results of Operations and Financial Condition |
On July 19, 2013, the Company issued a press release announcing its financial results for the second quarter of 2013. A copy of the press release is furnished as Exhibit 99.2 to this report and is incorporated herein by reference. This press release contains certain references to financial measures identified as organic sales, operating margin (excluding certain costs), operating working capital, and net (cash) debt, all of which are adjustments from comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (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 by investors of the Companys core business results. 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, 2012, filed with SEC on February 22, 2013.
Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant |
The information related to the 200 million (approximately U.S. $260 million) financing commitment agreement discussed under Item 1.01 above is hereby incorporated by reference under this Item 2.03.
Item 7.01 | Regulation FD disclosure |
On July 19, 2013, the Company issued a press release announcing its financial results for the second quarter of 2013. 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 July 19, 2013 reporting Autoliv, Inc.s financial results for the second quarter of 2013. |
SIGNATURE
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 thereunto duly authorized.
AUTOLIV, INC. | ||||
Date: July 19 , 2013 | ||||
By: | /s/ Lars A. Sjöbring | |||
Name: | Lars A. Sjöbring | |||
Title: | Group Vice President Legal Affairs General Counsel and Secretary |
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press Release of Autoliv, Inc. dated July 19, 2013 reporting Autoliv, Inc.s financial results for the second quarter of 2013. |
Exhibit 99.1
Financial Report
April - June 2013
Sales growth and operating margin better than expected
(Stockholm, July 19, 2013) For the three month period ended June 30, 2013, Autoliv Inc. (NYSE: ALV and SSE: ALIV.Sdb) the world leader in automotive safety reported consolidated sales of $2,198 million, an operating margin, excluding costs for antitrust investigations and capacity alignments, of 9.1%, and an organic sales growth of close to 6% (non-U.S. GAAP measure, see enclosed reconciliation table).
Cash flow from operations was $192 million and operating income was $194 million, including $6 million in costs for antitrust investigations and capacity alignment. Income before taxes was $193 million and net income was $139 million. Earnings Per Share (EPS) grew by 8% to $1.44, assuming dilution.
For the third quarter, Autolivs organic sales are expected to grow by close to 6%. The operating margin is expected to be around 8.5%, excluding costs for antitrust investigations and capacity alignments.
The indication for 2013 full year organic sales growth is now around 4%, reaching the upper end of the previously communicated range of 2 to 4%. The operating margin indication of around 9%, excluding costs for antitrust investigations and capacity alignments, is unchanged.
Comments from Jan Carlson, President and CEO
Autoliv had a solid quarter achieving record sales and a solid operating margin. The global vehicle production developed slightly better than anticipated, and through good execution, and high deliveries to well performing vehicle platforms we were able to benefit from the increase. During the quarter Autoliv held a Capital Market Day outlining future strategies for growth, and it is especially pleasing to see the key strategic growth areas of active safety, and new growth markets, specifically China, performing well.
In our new growth area of active safety, organic sales grew by more than 70%. This strong performance gives further confidence that we are on track to achieve our target of $500 million in active safety sales in 2015. We also continue to benefit from our long-term presence in China. We had another quarter with double digit sales growth, largely driven by the Chinese OEMs. This focus on safety from leading Chinese car manufacturers is an important trend for the future and Autoliv is well positioned to continue to benefit from it.
European sales in the quarter were stronger than expected, driven by an unexpected increase in vehicle production and high sales to premium European car makers. However, we remain cautious regarding Europe, as we dont see any improvement in vehicle production or overall economic recovery in the region and the adjustment of our European production footprint is taking longer than previously expected.
We enter the second half of the year guided by our business plan outlined at the Capital Market Day in May and with a sharp focus on continued execution of our strategies.
An earnings conference call will be held at 2:30 p.m. (CET) today, July 19. To follow the webcast, or obtain the pin code and phone number, please access www.autoliv.com. The conference call slides will be available on our web site as soon as possible following the publication of this earnings report.
Q2 Report 2013
Q2 Report 2013
First Six Months 2013
Q2 Report 2013
Q2 Report 2013
Report Second quarter 2013
Key Ratios
Quarter April - June | First 6 months | Latest 12 | Full year | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | months | 2012 | |||||||||||||||||||
Earnings per share, basic |
$ | 1.45 | $ | 1.35 | $ | 2.74 | $ | 2.48 | $ | 5.43 | $ | 5.17 | ||||||||||||
Earnings per share, diluted1) |
$ | 1.44 | $ | 1.33 | $ | 2.73 | $ | 2.40 | $ | 5.41 | $ | 5.08 | ||||||||||||
Total parent shareholders equity per share |
$ | 40.61 | $ | 37.38 | $ | 40.61 | $ | 37.38 | $ | 40.61 | $ | 39.36 | ||||||||||||
Cash dividend paid per share |
$ | 0.50 | $ | 0.47 | $ | 1.00 | $ | 0.92 | $ | 1.97 | $ | 1.89 | ||||||||||||
Operating working capital, $ in millions2) |
667 | 554 | 667 | 554 | 667 | 579 | ||||||||||||||||||
Capital employed, $ in millions3) |
3,474 | 3,298 | 3,474 | 3,298 | 3,474 | 3,415 | ||||||||||||||||||
Net (cash) debt, $ in millions2) |
(432 | ) | (283 | ) | (432 | ) | (283 | ) | (432 | ) | (361 | ) | ||||||||||||
Gross margin, %4) |
19.6 | 20.2 | 19.5 | 20.2 | 19.5 | 19.9 | ||||||||||||||||||
Operating margin, %5) |
8.8 | 9.1 | 8.7 | 8.1 | 8.9 | 8.5 | ||||||||||||||||||
Return on total equity, %6) |
14.4 | 14.4 | 13.8 | 13.2 | 13.9 | 13.6 | ||||||||||||||||||
Return on capital employed, %7) |
22.6 | 23.0 | 22.1 | 21.0 | 21.9 | 21.3 | ||||||||||||||||||
Average no. of shares in millions1) |
96.0 | 95.1 | 95.9 | 94.4 | 95.8 | 95.1 | ||||||||||||||||||
No. of shares at period-end in millions8) |
95.7 | 95.4 | 95.7 | 95.4 | 95.7 | 95.5 | ||||||||||||||||||
No. of employees at period-end9) |
44,151 | 39,947 | 44,151 | 39,947 | 44,151 | 41,747 | ||||||||||||||||||
Headcount at period-end10) |
53,555 | 49,832 | 53,555 | 49,832 | 53,555 | 50,962 | ||||||||||||||||||
Days receivables outstanding11) |
72 | 69 | 73 | 68 | 76 | 66 | ||||||||||||||||||
Days inventory outstanding12) |
29 | 30 | 30 | 29 | 31 | 30 |
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) Gross profit relative to sales. 5) Operating income relative to sales. 6) Net income relative to average total equity. 7) Operating income and equity in earnings of affiliates, relative to average capital employed. 8) Excluding dilution and net of treasury shares. 9) Employees with a continuous employment agreement, recalculated to full time equivalent heads. 10) Includes temporary hourly personnel. 11) Outstanding receivables relative to average daily sales. 12) Outstanding inventory relative to average daily sales.
Consolidated Statements of Net Income
(Dollars in millions, except per share data)
Quarter April - June | First 6 months | Latest 12 | Full year | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | months | 2012 | |||||||||||||||||||
Net sales |
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Airbag products |
$ | 1,420.0 | $ | 1,371.2 | $ | 2,803.0 | $ | 2,793.3 | $ | 5,401.7 | $ | 5,392.0 | ||||||||||||
Seatbelt products |
693.0 | 668.3 | 1,381.6 | 1,377.5 | 2,660.6 | 2,656.5 | ||||||||||||||||||
Active safety products |
84.5 | 49.3 | 147.9 | 96.9 | 269.2 | 218.2 | ||||||||||||||||||
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Total net sales |
2,197.5 | 2,088.8 | 4,332.5 | 4,267.7 | 8,331.5 | 8,266.7 | ||||||||||||||||||
Cost of sales |
(1,767.0 | ) | (1,666.7 | ) | (3,487.7 | ) | (3,404.5 | ) | (6,703.7 | ) | (6,620.5 | ) | ||||||||||||
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Gross profit |
430.5 | 422.1 | 844.8 | 863.2 | 1,627.8 | 1,646.2 | ||||||||||||||||||
Selling, general & administrative expenses |
(97.0 | ) | (93.9 | ) | (192.9 | ) | (187.5 | ) | (372.1 | ) | (366.7 | ) | ||||||||||||
Research, development & engineering expenses, net |
(130.4 | ) | (126.9 | ) | (259.5 | ) | (253.2 | ) | (461.7 | ) | (455.4 | ) | ||||||||||||
Amortization of intangibles |
(5.0 | ) | (5.1 | ) | (10.2 | ) | (9.7 | ) | (20.7 | ) | (20.2 | ) | ||||||||||||
Other income (expense), net |
(4.1 | ) | (5.8 | ) | (5.8 | ) | (69.1 | ) | (35.2 | ) | (98.5 | ) | ||||||||||||
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Operating income |
194.0 | 190.4 | 376.4 | 343.7 | 738.1 | 705.4 | ||||||||||||||||||
Equity in earnings of affiliates, net of tax |
1.9 | 1.4 | 3.6 | 3.5 | 8.2 | 8.1 | ||||||||||||||||||
Interest income |
0.7 | 0.7 | 1.6 | 1.5 | 3.5 | 3.4 | ||||||||||||||||||
Interest expense |
(8.3 | ) | (9.2 | ) | (16.2 | ) | (21.7 | ) | (36.2 | ) | (41.7 | ) | ||||||||||||
Other financial items, net |
4.4 | (0.9 | ) | (2.6 | ) | (3.5 | ) | (5.7 | ) | (6.6 | ) | |||||||||||||
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Income before income taxes |
192.7 | 182.4 | 362.8 | 323.5 | 707.9 | 668.6 | ||||||||||||||||||
Income taxes |
(53.3 | ) | (56.2 | ) | (98.3 | ) | (95.9 | ) | (185.4 | ) | (183.0 | ) | ||||||||||||
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Net income |
$ | 139.4 | $ | 126.2 | $ | 264.5 | $ | 227.6 | $ | 522.5 | $ | 485.6 | ||||||||||||
Less; Net income attributable to non-controlling interest |
0.7 | (0.2 | ) | 2.3 | 0.7 | 4.1 | 2.5 | |||||||||||||||||
Net income attributable to controlling interest |
$ | 138.7 | $ | 126.4 | $ | 262.2 | $ | 226.9 | $ | 518.4 | $ | 483.1 | ||||||||||||
Earnings per share1) |
$ | 1.44 | $ | 1.33 | $ | 2.73 | $ | 2.40 | $ | 5.41 | $ | 5.08 | ||||||||||||
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1) | Assuming dilution and net of treasury shares. |
Report Second quarter 2013
Consolidated Balance Sheets
(Dollars in millions)
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
2013 | 2013 | 2012 | 2012 | 2012 | ||||||||||||||||
Assets |
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Cash & cash equivalents |
$ | 1,042.4 | $ | 990.5 | $ | 977.7 | $ | 908.2 | $ | 917.3 | ||||||||||
Receivables, net |
1,716.5 | 1,674.5 | 1,509.3 | 1,577.4 | 1,570.0 | |||||||||||||||
Inventories, net |
617.1 | 613.5 | 611.0 | 623.4 | 595.7 | |||||||||||||||
Other current assets |
219.1 | 170.6 | 191.2 | 193.3 | 199.6 | |||||||||||||||
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Total current assets |
3,595.1 | 3,449.1 | 3,289.2 | 3,302.3 | 3,282.6 | |||||||||||||||
Property, plant & equipment, net |
1,244.6 | 1,230.9 | 1,232.8 | 1,194.9 | 1,133.4 | |||||||||||||||
Investments and other non-current assets |
321.1 | 337.8 | 341.3 | 293.0 | 281.9 | |||||||||||||||
Goodwill assets |
1,602.7 | 1,604.3 | 1,610.8 | 1,610.3 | 1,604.1 | |||||||||||||||
Intangible assets, net |
87.1 | 92.2 | 96.2 | 101.7 | 105.2 | |||||||||||||||
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Total assets |
$ | 6,850.6 | $ | 6,714.3 | $ | 6,570.3 | $ | 6,502.2 | $ | 6,407.2 | ||||||||||
Liabilities and equity |
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Short-term debt |
$ | 183.8 | $ | 72.1 | $ | 69.8 | $ | 158.1 | $ | 171.3 | ||||||||||
Accounts payable |
1,128.5 | 1,076.9 | 1,055.9 | 1,055.2 | 1,074.8 | |||||||||||||||
Other current liabilities |
804.9 | 795.0 | 724.1 | 758.7 | 787.3 | |||||||||||||||
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Total current liabilities |
2,117.2 | 1,944.0 | 1,849.8 | 1,972.0 | 2,033.4 | |||||||||||||||
Long-term debt |
440.2 | 561.0 | 562.9 | 497.4 | 472.9 | |||||||||||||||
Pension liability |
258.3 | 256.9 | 255.4 | 199.5 | 195.7 | |||||||||||||||
Other non-current liabilities |
129.1 | 129.4 | 126.1 | 131.7 | 124.3 | |||||||||||||||
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Total non-current liabilities |
827.6 | 947.3 | 944.4 | 828.6 | 792.9 | |||||||||||||||
Total parent shareholders equity |
3,886.1 | 3,803.9 | 3,758.6 | 3,685.5 | 3,565.6 | |||||||||||||||
Non-controlling interest |
19.7 | 19.1 | 17.5 | 16.1 | 15.3 | |||||||||||||||
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Total equity |
3,905.8 | 3,823.0 | 3,776.1 | 3,701.6 | 3,580.9 | |||||||||||||||
Total liabilities and equity |
$ | 6,850.6 | $ | 6,714.3 | $ | 6,570.3 | $ | 6,502.2 | $ | 6,407.2 | ||||||||||
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Consolidated Statements of Cash Flows
(Dollars in millions)
Quarter April - June | First 6 months | Latest 12 | Full year | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | months | 2012 | |||||||||||||||||||
Net income |
$ | 139.4 | $ | 126.2 | $ | 264.5 | $ | 227.6 | $ | 522.5 | $ | 485.6 | ||||||||||||
Depreciation and amortization |
69.8 | 69.0 | 139.4 | 135.7 | 276.9 | 273.2 | ||||||||||||||||||
Other, net |
10.9 | 18.8 | 24.6 | 24.4 | 10.0 | 9.8 | ||||||||||||||||||
Changes in operating assets and liabilities |
(28.3 | ) | 4.6 | (95.9 | ) | (71.1 | ) | (104.9 | ) | (80.1 | ) | |||||||||||||
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Net cash provided by operating activities |
191.8 | 218.6 | 332.6 | 316.6 | 704.5 | 688.5 | ||||||||||||||||||
Capital expenditures, net |
(88.2 | ) | (85.2 | ) | (174.2 | ) | (163.6 | ) | (371.0 | ) | (360.4 | ) | ||||||||||||
Acquisitions of businesses and other, net |
(0.3 | ) | 4.6 | (0.4 | ) | 4.2 | (2.4 | ) | 2.2 | |||||||||||||||
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Net cash used in investing activities |
(88.5 | ) | (80.6 | ) | (174.6 | ) | (159.4 | ) | (373.4 | ) | (358.2 | ) | ||||||||||||
Net cash before financing1) |
103.3 | 138.0 | 158.0 | 157.2 | 331.1 | 330.3 | ||||||||||||||||||
Net increase (decrease) in short-term debt |
112.9 | (25.6 | ) | 115.8 | (6.7 | ) | 2.7 | (119.8 | ) | |||||||||||||||
Issuance of long-term debt |
0.0 | 6.4 | 0.0 | 6.4 | 92.1 | 98.5 | ||||||||||||||||||
Repayments and other changes in long-term debt |
(113.7 | ) | (4.1 | ) | (114.3 | ) | (8.4 | ) | (115.3 | ) | (9.4 | ) | ||||||||||||
Dividends paid |
(47.8 | ) | (44.8 | ) | (95.6 | ) | (85.0 | ) | (188.2 | ) | (177.6 | ) | ||||||||||||
Common stock options exercised |
7.1 | 4.1 | 9.1 | 9.8 | 12.2 | 12.9 | ||||||||||||||||||
Common stock issue, net |
| 106.3 | | 106.3 | | 106.3 | ||||||||||||||||||
Dividend paid to non-controlling interests |
(0.4 | ) | (0.8 | ) | (0.4 | ) | (0.8 | ) | (0.4 | ) | (0.8 | ) | ||||||||||||
Other, net |
0.3 | (0.5 | ) | 0.8 | (0.9 | ) | 0.3 | (1.4 | ) | |||||||||||||||
Effect of exchange rate changes on cash |
(9.8 | ) | 6.3 | (8.7 | ) | 0.2 | (9.4 | ) | (0.5 | ) | ||||||||||||||
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Increase in cash and cash equivalents |
51.9 | 185.3 | 64.7 | 178.1 | 125.1 | 238.5 | ||||||||||||||||||
Cash and cash equivalents at period-start |
990.5 | 732.0 | 977.7 | 739.2 | 917.3 | 739.2 | ||||||||||||||||||
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Cash and cash equivalents at period-end |
$ | 1,042.4 | $ | 917.3 | $ | 1,042.4 | $ | 917.3 | $ | 1,042.4 | $ | 977.7 | ||||||||||||
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1) | Non-GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". |
Report Second quarter 2013
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.
June 30 2013 |
March 31 2013 |
December 31 2012 |
September 30 2012 |
June 30 2012 |
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Total current assets |
$ | 3,595.1 | $ | 3,449.1 | $ | 3,289.2 | $ | 3,302.3 | $ | 3,282.6 | ||||||||||
Total current liabilities |
(2,117.2 | ) | (1,944.0 | ) | (1,849.8 | ) | (1,972.0 | ) | (2,033.4 | ) | ||||||||||
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Working capital |
1,477.9 | 1,505.1 | 1,439.4 | 1,330.3 | 1,249.2 | |||||||||||||||
Cash and cash equivalents |
(1,042.4 | ) | (990.5 | ) | (977.7 | ) | (908.2 | ) | (917.3 | ) | ||||||||||
Short-term debt |
183.8 | 72.1 | 69.8 | 158.1 | 171.3 | |||||||||||||||
Derivative asset and liability, current |
0.0 | (1.3 | ) | 0.0 | 4.6 | 6.0 | ||||||||||||||
Dividends payable |
47.8 | 47.8 | 47.7 | 47.7 | 44.8 | |||||||||||||||
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Operating working capital |
$ | 667.1 | $ | 633.2 | $ | 579.2 | $ | 632.5 | $ | 554.0 | ||||||||||
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Net (Cash) 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. Included in the DRD is also the unamortized fair value adjustment related to a discontinued fair value hedge which will be amortized over the remaining life of the debt. By adjusting for DRD, the total economic liability of net debt is disclosed without grossing it up with currency or interest fair values that are offset by DRD reported in other balance sheet captions.
June 30 2013 |
March 31 2013 |
December 31 2012 |
September 30 2012 |
June 30 2012 |
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Short-term debt |
$ | 183.8 | $ | 72.1 | $ | 69.8 | $ | 158.1 | $ | 171.3 | ||||||||||
Long-term debt |
440.2 | 561.0 | 562.9 | 497.4 | 472.9 | |||||||||||||||
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Total debt |
624.0 | 633.1 | 632.7 | 655.5 | 644.2 | |||||||||||||||
Cash and cash equivalents |
(1,042.4 | ) | (990.5 | ) | (977.7 | ) | (908.2 | ) | (917.3 | ) | ||||||||||
Debt-related derivatives |
(13.8 | ) | (15.7 | ) | (15.8 | ) | (12.1 | ) | (10.1 | ) | ||||||||||
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Net (cash) debt |
$ | (432.2 | ) | $ | (373.1 | ) | $ | (360.8 | ) | $ | (264.8 | ) | $ | (283.2 | ) | |||||
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Components in Sales Increase/Decrease
Since the Company generates approximately 75% 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 reconciliation below presents changes in organic sales growth as reconciled to the change in the total U.S. GAAP net sales.
Quarter April June
Europe | Americas | Japan | China | RoA | Total | |||||||||||||||||||||||||||||||||||||||||||
% | $ | % | $ | % | $ | % | $ | % | $ | % | $ | |||||||||||||||||||||||||||||||||||||
Organic change |
3.8 | $ | 25.8 | 6.5 | $ | 47.3 | (4.2 | ) | $ | (8.9 | ) | 15.6 | $ | 42.5 | 6.1 | $ | 12.4 | 5.7 | $ | 119.1 | ||||||||||||||||||||||||||||
Currency effects |
2.4 | 16.3 | 1.6 | 11.5 | (19.5 | ) | (41.1 | ) | 1.9 | 5.2 | 2.3 | 4.6 | (0.2 | ) | (3.5 | ) | ||||||||||||||||||||||||||||||||
Acquisitions/divestitures |
(1.0 | ) | (6.9 | ) | | | | | | | | | (0.3 | ) | (6.9 | ) | ||||||||||||||||||||||||||||||||
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Reported change |
5.2 | $ | 35.2 | 8.1 | $ | 58.8 | (23.7 | ) | $ | (50.0 | ) | 17.5 | $ | 47.7 | 8.4 | $ | 17.0 | 5.2 | $ | 108.7 | ||||||||||||||||||||||||||||
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First 6 months January June
Europe | Americas | Japan | China | RoA | Total | |||||||||||||||||||||||||||||||||||||||||||
% | $ | % | $ | % | $ | % | $ | % | $ | % | $ | |||||||||||||||||||||||||||||||||||||
Organic change |
(2.9 | ) | $ | (41.4 | ) | 4.8 | $ | 70.2 | (9.7 | ) | $ | (43.8 | ) | 19.8 | $ | 102.2 | 4.0 | $ | 16.5 | 2.4 | $ | 103.7 | ||||||||||||||||||||||||||
Currency effects |
1.7 | 24.0 | 0.8 | 11.3 | (16.6 | ) | (74.5 | ) | 1.6 | 8.6 | 2.1 | 8.3 | (0.5 | ) | (22.3 | ) | ||||||||||||||||||||||||||||||||
Acquisitions/divestitures |
(1.2 | ) | (16.6 | ) | | | | | | | | | (0.4 | ) | (16.6 | ) | ||||||||||||||||||||||||||||||||
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Reported change |
(2.4 | ) | $ | (34.0 | ) | 5.6 | $ | 81.5 | (26.3 | ) | $ | (118.3 | ) | 21.4 | $ | 110.8 | 6.1 | $ | 24.8 | 1.5 | $ | 64.8 | ||||||||||||||||||||||||||
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Report Second quarter 2013
ITEMS AFFECTING COMPARABILITY
The following items have affected the comparability of reported results from year to year. We believe that, to assist in understanding Autolivs operations, it is useful to consider certain U.S. GAAP measures exclusive of these items. Accordingly, the tables below reconcile from U.S. GAAP to the equivalent non-U.S. GAAP measure.
Quarter April - June 2013 | Quarter April - June 2012 | |||||||||||||||||||||||
Non-U.S. GAAP |
Adjustments 1) | Reported U.S. GAAP |
Non-U.S. GAAP |
Adjustments 1) | Reported U.S. GAAP |
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Operating income |
$ | 199.6 | $ | (5.6 | ) | $ | 194.0 | $ | 196.0 | $ | (5.6 | ) | $ | 190.4 | ||||||||||
Operating margin, % |
9.1 | (0.3 | ) | 8.8 | 9.4 | (0.3 | ) | 9.1 | ||||||||||||||||
Income before taxes |
$ | 198.3 | $ | (5.6 | ) | $ | 192.7 | $ | 188.0 | $ | (5.6 | ) | $ | 182.4 | ||||||||||
Net income |
$ | 143.2 | $ | (3.8 | ) | $ | 139.4 | $ | 131.6 | $ | (5.4 | ) | $ | 126.2 | ||||||||||
Return on capital employed, % |
23.2 | (0.6 | ) | 22.6 | 23.3 | (0.3 | ) | 23.0 | ||||||||||||||||
Return on total equity, % |
14.8 | (0.4 | ) | 14.4 | 14.8 | (0.4 | ) | 14.4 | ||||||||||||||||
Earnings per share, diluted 2) |
$ | 1.48 | $ | (0.04 | ) | $ | 1.44 | $ | 1.39 | $ | (0.06 | ) | $ | 1.33 | ||||||||||
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First 6 months 2013 | First 6 months 2012 | |||||||||||||||||||||||
Non-U.S. GAAP |
Adjustments 1) | Reported U.S. GAAP |
Non-U.S. GAAP |
Adjustments 1) | Reported U.S. GAAP |
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Operating income |
$ | 386.5 | $ | (10.1 | ) | $ | 376.4 | $ | 412.9 | $ | (69.2 | ) | $ | 343.7 | ||||||||||
Operating margin, % |
8.9 | (0.2 | ) | 8.7 | 9.7 | (1.6 | ) | 8.1 | ||||||||||||||||
Income before taxes |
$ | 372.9 | $ | (10.1 | ) | $ | 362.8 | $ | 392.7 | $ | (69.2 | ) | $ | 323.5 | ||||||||||
Net income |
$ | 271.5 | $ | (7.0 | ) | $ | 264.5 | $ | 278.9 | $ | (51.3 | ) | $ | 227.6 | ||||||||||
Capital employed |
$ | 3,481 | $ | (7 | ) | $ | 3,474 | $ | 3,349 | $ | (51 | ) | $ | 3,298 | ||||||||||
Return on capital employed, % |
22.6 | (0.5 | ) | 22.1 | 24.9 | (3.9 | ) | 21.0 | ||||||||||||||||
Return on total equity, % |
14.1 | (0.3 | ) | 13.8 | 16.0 | (2.8 | ) | 13.2 | ||||||||||||||||
Earnings per share, diluted 2) |
$ | 2.81 | $ | (0.08 | ) | $ | 2.73 | $ | 2.95 | $ | (0.55 | ) | $ | 2.40 | ||||||||||
Total parent shareholders equity per share |
$ | 40.68 | $ | (0.07 | ) | $ | 40.61 | $ | 37.91 | $ | (0.53 | ) | $ | 37.38 | ||||||||||
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1) Capacity alignment and antitrust investigations. 2) Assuming dilution and net of treasury shares.
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