Autoliv, Inc. (ALV: Quote), a manufacturer of automotive safety systems, on Friday reported a decline in second-quarter profit that missed Wall Street view. Revenue grew only marginally, hit by adverse currency. The company also issued a weak sales outlook. Shares are falling over 3 percent in pre-market activity.
The Stockholm, Sweden-based company's net income attributable to controlling interest dropped to $126.4 million from $145 million in the prior year.
Earnings per share fell to $1.33 from $1.54. According to the firm, earnings per share were reduced by 18 cents due to higher effective tax rate, 6 cents due to negative currency impact and by 1 cent due to more shares outstanding.
Excluding items, earnings per share dropped to $1.39 from $1.56. On average, 9 analysts polled by Thomson Reuters expected earnings of $1.40 per share for the quarter. Analysts' estimates typically exclude special items.
Total net sales edged up to $2.09 billion from $2.06 billion. Analysts expected revenues of $2.11 billion for the quarter.
Excluding negative currency effects of 6 percent and a small divestiture, organic sales increased by slightly less than 8 percent compared to an expected increase of around 7 percent.
According to the company, strong performance in North America more than offset a weaker-than-expected sales in China and Western Europe.
Sales of airbag products grew 1 percent to $1.37 billion, driven by strong demand for curtain airbags. Sales of knee airbags grew fast due to their integration into more vehicle models.
Sales of seatbelt products were virtually unchanged while active safety products such as automotive radars, night vision systems and cameras with driver assist systems, increased by 27 percent.
Looking ahead, on the basis of Autoliv's call-offs from customers, the company expects organic sales to grow by nearly 4 percent in the third quarter. Currency effects are expected to reduce sales by over 6 percent. The company expects a decrease in consolidated sales around 3 percent.
Projection for the full year is for an organic sales growth of approximately 6 percent and a
consolidated sales increase of about 1 percent.
The stock, which closed at $56.64 on Thursday, is losing 3.5 percent in pre-market activity.
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by RTT Staff Writer
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