The board of directors of
Autoliv Inc.
(
ALV">ALV
) recently elected Mr. LarsNyberg as the new chairman of the
company's board. Currently, Mr.Nyberg is serving as the chairman
ofDataCard Corporation, a Minnesota-based company that deals with
secure ID and card personalization for education, corporate
security and many other markets.
Nyberg also holds the office of the President and Chief
Executive Officer ofTeliaSonera , one of the leading Nordic and
Baltic telecommunications companies.
The selection of the new chairman follows the departure of
LarsWesterberg from the position ofAutoliv's chairman after serving
for nearly 13 years. UnderWesterberg ,Autoliv's sales witnessed
significant improvement, from $3.5 billion in 1998 to more than $8
billion expected at the end of 2011.
The board also declared a dividend of 45 cents per share for the
first quarter of 2012, payable on March 01, 2012 to stockholders of
record as of February 15, 2012.
In the last reported quarter,Autoliv recorded profit of $138.4
million or $1.48 per share, down from $140.1 million or $1.51 per
share in the year-ago quarter. Consolidated sales appreciated 16%
to $2.02 billion, reflecting a 6% upside due to currency
translation. Organic sales rose by 9% during the quarter.
The company's sales were highly influenced by recent vehicle
launches and a favorable vehicle mix, particularly relating to
Hyundai/KIA and
General Motors Company
(
GM
),
Ford Motor Co.
(
F
) and Chrysler. These apart, strong demand for side airbags for
chest protection as well as for electronics (both passive
electronics and active safety systems), and the continued global
trend of upgrading seatbelt systems withpretensioners led to the
sales growth.
Autoliv has a stable market share in both airbag modules and
seat belts in North America, Europe and Asia. The company has
continuously expanded in low-cost countries, including Romania and
China, in order to cater to the local demand and to consolidate its
manufacturing facilities from high-cost countries.
However, the company faces significant customer concentration
risks. The company's top-5 represent about 59% of sales and the top
10 represent 74% of sales.
Due to these factors, the company retains aZacks #3 Rank, which
translates to a Hold rating for the short term (1 to 3 months). We
have reiterated our Neutral recommendation on the stock for the
long term (more than 6 months).
AUTOLIV INC (
ALV
): Free Stock Analysis Report
FORD MOTOR CO (
F
): Free Stock Analysis Report
GENERAL MOTORS (
GM
): Free Stock Analysis Report
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