Autoliv has posted first-quarter operating income up 3.6% to US$225m, with record sales up 7.8% to US2.8bn and gross profit of US$579m.
For full year 2018, in the Passive Safety segment, the supplier says indication for organic sales growth is more than 10%, with indication underlying segment profitability will increase compared to full-year 2017.
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For the Electronics segment, the indication is for organic sales growth to be around negative 3% for the full year, with underlying segment profitability decreasing compared to full year 2017.
“The first quarter 2018 was a solid quarter with record sales and record gross profit,” said Autoliv chairman, president and CEO, Jan Carlson. “Adjusted operating margin was in line with guidance and I am pleased it improved year-over-year for the second consecutive quarter.
“Operating cash flow is seasonally lower in the first quarter, but the quarter was also affected by unfavourable timing effects. On a full year basis, excluding separation effects, we expect operating cash flow to be on the same level as last year.
“Our planned spin-off of the Electronics segment is on track with trading in Veoneer stock expected to begin early in the third quarter of 2018. The leadership positions were announced on March 22, the internal operational separation of the two organisations was achieved on April 1 and Veoneer publicly filed its Form-10 registration statement with the SEC on April 26.
“As we execute on our plans for the spin-off, we remain focused on our business development. We have good momentum in Active Safety, with both stronger than expected core Active Safety sales growth and a milestone ADAS order from Geely, which includes Zenuity software. Recent events in the ADAS and AD environment are a reminder of the importance of system validations and to always focus on having safety first in mind.”
Autoliv earlier updated the situation on the spin-off its electronics business under the name Veoneer, noting the transaction is ‘progressing well.’
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