) reported first-quarter 2014 adjusted earnings of $1.43 per
share, marginally beating the Zacks Consensus Estimate of $1.42
per share. Earnings improved 8.3% from $1.32 per share reported
in the first quarter of 2013.
Including costs for capacity alignment and antitrust
investigations in the first quarter of 2014, earnings per share
amounted to $1.38, up 7% from $1.29 in the year-ago quarter.
Consolidated revenues rose 7.5% year over year to a record
high of $2.3 billion, in line with the Zacks Consensus Estimate.
The improvement was driven by higher-than-expected vehicle
production in North America, Western Europe and South Korea,
partly offset by weaker-than-expected production volumes in China
and South America.
Operating income surged 5.1% to $191.7 million (or 8.4% of
sales) from $182.4 million (or 8.5% of sales) in the year-ago
quarter. Excluding capacity alignment and antitrust investigation
costs, operating margin was 8.6%, which was higher than the
company's guidance of 8%.
Sales of Airbag products (including steering wheels and
passive safety electronics) rose 7.4% year over year to $1.49
billion due to high sales of passive electronics, leather wrapped
steering wheels and knee airbags. Excluding negative currency
effects, Airbag sales improved 7.8%.
Sales of Seatbelt products improved 2.1% to $703 million
driven by higher sales of active seatbelts, primarily in Europe.
Organic sales rose 2.5% over the prior-year quarter.
Sales of Active Safety products (automotive radar, night
vision systems and vision camera with driver assist systems)
surged 68.5% to $106.9 million year over year. Excluding positive
currency effects, organic sales improved 68.2%. The increase was
due to the demand for radar products by
) for its Mercedes cars. Demand for radars from Acura, Cadillac
and Jeep and night vision products from both Daimler and BMW also
contributed to the improvement.
Autoliv had cash and cash equivalents of $1.1 billion as of
Mar 31, 2014, up from $990.5 million as of Mar 31, 2013.
Long-term debt decreased to $638.3 million from $633.1 million as
of Mar 31, 2013.
In the first quarter of 2014, Autoliv's cash flow from
operations improved to $185 million from $141 million a year ago.
Net capital expenditures increased to $93 million from $86
million in the year-ago period.
Autoliv spent $94 million to repurchase about 1 million shares
at an average price of $94.61.
Autoliv announced its quarterly dividend of 52 cents per share
for the second quarter of 2014. The dividend will be paid on Jun
5, 2014 to shareholders of record as of May 21, 2014.
Autoliv expects organic sales growth of about 5% and projects
operating margin to be around 9% in the second quarter of 2014,
excluding capacity alignments and antitrust investigation
For full-year 2014, the company anticipates organic sales
growth of 5%. Autoliv also announced an operating margin guidance
of around 9%, excluding capacity alignments and antitrust
Expenses related to the ongoing capacity alignment program are
expected to be in the range of $20-$40 million in 2014, while tax
rate should be around 29%. Operating cash flows are expected to
be more than $700 million and capital expenses are projected to
vary between 4.5-5% of sales.
Currently, Autoliv holds a Zacks Rank #3 (Hold). Some stocks
performing well in the same industry include
Superior Industries International, Inc.
Magna International Inc.
), both carrying a Zacks Rank #1 (Strong Buy).
AUTOLIV INC (ALV): Free Stock Analysis Report
DAIMLER AG (DDAIF): Get Free Report
MAGNA INTL CL A (MGA): Free Stock Analysis
SUPERIOR INDS (SUP): Free Stock Analysis
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