) reported second-quarter 2014 adjusted earnings of $1.45 per
share, missing the Zacks Consensus Estimate of $1.54 per share.
Earnings decreased 2% from $1.48 per share reported in the second
quarter of 2013.
Including costs for capacity alignment and antitrust matters,
earnings per share amounted to 89 cents in the second quarter of
2014 compared with $1.44 in the same quarter of 2013.
Autoliv, Inc - Quarterly EPS (BNRI) |
Consolidated revenues rose 8.4% year over year to $2.38 billion,
marginally beating the Zacks Consensus Estimate of $2.33
billion. The revenue increase was higher than the company's
expectation of a 5% rise. The improvement was driven by
higher-than-expected vehicle production in North America, Europe,
Japan and South Korea. This was partially offset by decline in
light vehicle production in Brazil. In addition, there was higher
demand from China. Demand for active safety products also
Operating income declined 28.1% to $139.4 million (or 5.8% of
sales) from $194 million (or 8.8% of sales) in the year-ago
quarter. Excluding capacity alignment and antitrust investigation
costs, operating margin stood at 9.3%, higher than the company's
guidance of 9%.
Sales of Airbag products (including steering wheels and passive
safety electronics) rose 8.5% year over year to $1.54 billion on
high sales of side airbags, knee airbags, safety electronics and
steering wheels. Excluding negative currency effects, Airbag sales
Revenues from Seatbelt products improved 4.5% to $724.4 million
driven by higher sales in China, North America and Europe. Rising
demand for more advanced and higher value added seatbelt systems
globally boosted the segment's revenues. However, decline in light
vehicle production in South America partially marred the results.
Excluding positive currency effects, organic sales improved 3.5%.
Sales of Active Safety products (automotive radar, night vision
systems and vision camera with driver assist systems) surged 39.6%
to $117.9 million year over year. Excluding positive currency
effects, organic sales improved 39.5%. The increase can be
attributed to the increased demand for radar and night vision
products by Daimler. There was also strong demand for vision
products by BMW.
Autoliv had cash and cash equivalents of $2.1 billion as of Jun 30,
2014, up from $1.04 billion as of Jun 30, 2013. Long-term debt
increased to $1.8 billion from $624 million as of Jun 30, 2013.
In the first half of 2014, Autoliv's cash flow from operations
decreased to $271 million from $332.6 million a year ago. Net
capital expenditures increased to $207.4 million from $174.2
million in the year-ago period.
Autoliv spent $97 million to repurchase about 944,707 shares at an
average price of $ 102.81 during the quarter.
The company announced an increase in quarterly dividend to 54 cents
per share from 52 cents, for the third quarter of 2014. The
dividend will be paid on Sep 4, 2014 to shareholders of record as
of Aug 20, 2014.
Autoliv expects organic sales growth of about 6% and projects
adjusted operating margin to be around 8.5% in the third quarter of
2014, excluding capacity alignments and antitrust investigation
For full-year 2014, the company raised the organic sales growth
guidance to 6% from 5%. Autoliv also projects operating margin of
around 9%, excluding capacity alignments and antitrust
Expenses related to the ongoing capacity alignment program are
expected to be $40 million in 2014, while tax rate should be around
29%. Operating cash flows are anticipated to be more than $700
million and capital expenses are projected to vary between 4.5-5%
of sales due to rising expenditure required to support growth
Currently, Autoliv holds a Zacks Rank #3 (Hold). Some better-ranked
automobile stocks worth considering include
China Automotive Systems Inc.
Magna International Inc.
), all of which sport a Zacks Rank #1 (Strong Buy).
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AUTOLIV INC (ALV): Free Stock Analysis Report
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