) raised its quarterly dividend by 6% to 50 cents per share for the
fourth quarter of the year from 47 cents, which will be paid on
September 6, 2012. The new dividend is 43% higher than the highest
dividend paid before the financial crisis in 2008-2009. It is
payable on December 6 to shareholders of record as of November 21
Autoliv resumed its dividend in the second quarter of 2010. The
dividend of 30 cents per share was paid in the third quarter of
2010. It has since been raised in the subsequent four quarters.
Last year, the company paid a quarterly dividend of 45 cents per
Autoliv, a Zacks #3 Rank (Hold) stock, posted a 14% drop in profits
to $1.33 per share in the second quarter of the year from $1.54 a
year earlier, due to weak markets in Europe and South America as
well as higher raw material prices. The company also missed the
Zacks Consensus Estimate by 6 cents. In absolute terms, profits
fell 13% to $126.4 million from $145.0 million a year ago.
Consolidated sales increased 1% to $2.09 billion, lower than the
Zacks Consensus Estimate of $2.13 billion. Excluding negative
currency effects of 6% and a small divestiture, organic sales went
up roughly 8%, outperforming its own guidance of 7% due to a better
performance in North America that more than offset lower sales in
China and Western Europe.
Operating income declined to $190 million (9.1% of sales) from $205
million (10.0%) in the second quarter of 2011. The declines were
driven by an increases in research development and engineering
expenses by $9 million and in capacity alignment costs by $4
Autoliv's anticipates organic sales to grow about 4% in the third
quarter of the year. However, consolidated sales are expected to
decline 3% in the quarter due to negative currency effects of 6%
and the effect from the divestiture of Autoliv Mekan.
Given the forecast of a 5% increase in light vehicle production
), Autoliv expects organic sales to improve 6% for the full year
2012.. Meanwhile, consolidated sales are expected to increase
marginally by 1% due to currency effects (4%) and divestiture of
Autoliv Mekan. The company expects operating margin to be 10% for
the third quarter and the same for the full year.
In order to outperform global LVP, capital expenditures are
expected to maintain at a high level of 4.5% of sales in 2012.
Operations are expected to continue to generate a strong cash flow
in the magnitude of $700 million for the full year 2012, excluding
payments for antitrust investigations.
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