Autoliv income drops 22% on acquisitions, higher research spending
Autoliv Inc., the world’s largest airbag and seat belt supplier, reported its net income fell 22 percent in the fourth quarter to $144 million.
The Swedish company’s operating profit dropped 15 percent to $239 million for the quarter and its operating margin of 9.2 percent fell from 11 percent in 2015. Autoliv attributed the decreases to higher r&d and administrative spending along with the impact of recent acquisitions.
Although Autoliv saw a 3.3 percent increase in fourth quarter revenue of $2.6 billion, the value fell slightly below analyst expectations. On an earnings-per-share basis, Autoliv’s adjusted earnings came in at $1.71 for the quarter, which missed analysts’ average estimate of $1.84.
“The fourth quarter developed largely in line with our expectations,” Autoliv CEO Jan Carlson said in a statement Thursday. “I am particularly pleased with our growth in Asia, where we, for the first time, recorded sales above $1 billion for a quarter.”
While North American light-vehicle production increased moderately in the fourth quarter, Carlson said Autoliv’s “growth was hampered by lower sales of replacement inflators and an unfavorable model mix,” including certain models from Ford, Fiat Chrysler and General Motors.
For the year, Autoliv said its operating income rose 17 percent to $848 million while total revenue increased 9.9 percent to $10.07 billion from $9.17 billion in 2015.
The company said it expects 2017 first-quarter sales to increase by more than 3 percent and to see an adjusted operating margin of 8 percent. For the full year, Autoliv estimates a 4 percent growth in sales.
The supplier says it plans to make replacement airbag inflator deliveries of up to 30 million units from 2015 to 2018 and added there could be potential for more deliveries beyond that period.
Autoliv’s statement made no mention of competitor Takata Corp. in its outlook, for which Autoliv is in the final rounds of a bid to purchase. Autoliv recently accused Takata of keeping necessary information from Autoliv, which it needs to make an appropriate bid.
Autoliv, headquartered in Stockholm, Sweden, ranks No. 25 on the 2016 Automotive News list of top 100 global suppliers.