Autoliv has reported a better than expected set of results for its third quarter, helped by the cash for clunkers programme in the US.
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For the period to 30 September, the automotive safety systems specialist reported net sales of US$1,326m, an operating margin of 5.6% before restructuring charges and cash flow of $105m before financing.
The results were better than expected, partially due to higher light vehicle production resulting from the US “Cash for Clunkers” programme and other scrapping incentives. The company also said its operating margin was also better than the updated guidance from September, due to what it called “temporary effects”.
Compared to the same quarter in 2008, consolidated net sales declined 14% with the organic sales portion declining by 12% due to a 15% drop in light vehicle production (LVP) in North America and Europe, where Autoliv generates more than 70% of its sales.
Including severance and other restructuring charges of $14m, operating income was $60m, whilst total net income reached $34m.
For the fourth quarter, consolidated net sales were expected to grow by approximately 25%, with the organic sales portion growing by more than 10%. An operating margin of at least 7%, excluding restructuring charges, is expected for the quarter.
