Automotive safety systems specialist Autoliv said on Tuesday second quarter net sales off 37% to $1,193m, a positive operating margin of 1.7% before restructuring charges and a positive cash flow of $96m before financing were better than guidance provided in April thanks to cost cutting actions and stronger than anticipated light vehicle production.
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There was a 35% drop in light vehicle production in North America and western Europe, where Autoliv makes over 70% of its sales.
Including severance and other restructuring charges of $32m, operating income was a loss of $12m, income before taxes a loss of $28m and net income a loss of $21m, corresponding to a loss per share of 24 cents.
Autoliv made a pretax profit of $135m a year ago. A Reuters poll of a dozen analysts had produced a mean forecast of $74m for Q2 2009.
Operations generated $127m in cash, while the $96m before financing was $9m more than in the same quarter of 2008 despite higher severance payments.
For the third quarter, the company expects a decline in consolidated net sales of 20-25% and a positive operating margin in the range of 1% to 3% excluding restructuring charges.
