) reported fourth-quarter 2013 adjusted earnings of $1.70 per
share, beating the Zacks Consensus Estimate of $1.49. Earnings
improved 7.6% from $1.58 per share reported in the fourth quarter
Including a non-cash, non-recurring valuation allowance for
deferred tax assets in the fourth quarter of 2013, earnings per
share amounted to $1.04, down 28.3% from $1.45 in the year-ago
Consolidated revenues rose 14.6% year over year to a record
high of $2.35 billion, beating the Zacks Consensus Estimate of
$2.24 billion. The improvement was driven by higher-than-expected
vehicle production in all regions, particularly in China.
Operating income surged 16.3% to $202.7 million or 8.6% of
sales from $174.3 million or 8.5% of sales in the year-ago
quarter. Excluding capacity alignment and antitrust
investigations costs, operating margin was 10%, which was higher
than the company's guidance of 9%.
Autoliv reported earnings of $5.82 per share in 2013, in line
with 2012. Earnings per share surpassed the Zacks Consensus
Estimate of $5.64.
Consolidated revenues increased to a record high of $8.8
billion from $8.27 billion in 2012, exceeding the Zacks Consensus
Estimate of $8.69 billion.
Sales of Airbag products (including steering wheels and
passive safety electronics) rose 14.2% year over year to $1.52
billion due to high sales growth of side airbags, knee airbags,
electronics and steering wheels. Excluding negative currency
effects, Airbag sales improved by 14.7%.
Sales of Seatbelt products improved 11.3% to $732.1 million
driven by favorable currency effects and higher sales in China
and Europe. Organic sales rose 10.9% over the prior-year
Sales of Active safety products (automotive radar, night
vision systems and vision camera with driver assist systems)
surged 56.7% to $100.7 million year over year. Excluding positive
currency effects, organic sales improved 55.6%. The increase was
driven mainly by the demand for the radar by
) for its Mercedes cars and night vision products by both Daimler
Autoliv had cash and cash equivalents of $1.12 billion as of
Dec 31, 2013, up from $977.7 million as of Dec 31, 2012.
Long-term debt decreased to $618.5 million from $632.7 million as
of Dec 31, 2012.
In 2013, Autoliv's cash flow from operations improved to
$837.9 million from $688.5 million a year ago. Net capital
expenditures increased to $379.3 million from $360.4 million in
the year-ago period.
Autoliv reactivated its share buyback program during the
quarter and spent $148 million to repurchase 1.636 million shares
at an average price of $90.30. On Jan 30, 2014, the board of
directors approved an increase of 10 million shares in the
buyback authorization, taking the total outstanding authorization
to 11.6 million shares.
Autoliv increased its quarterly dividend for the first quarter
of 2014 to 52 cents per share from the previous payout of 50
cents. The increased dividend will be paid on Mar 6, 2014 to
shareholders of record as of Feb 20, 2014.
Autoliv expects organic sales growth of about 7% and projects
operating margin to be 8% in the first quarter of 2014, excluding
capacity alignments and antitrust-investigation costs.
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 28%. 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 #4 (Sell).
STRATTEC Security Corporation
), both carrying a Zacks Rank #1 (Strong Buy), are performing
well in the industry.
AUTOLIV INC (ALV): Free Stock Analysis Report
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