STOCKHOLM, Jan. 28, 2020 /PRNewswire/ --
Q4 2019: Profitability and cash flow improvement
Financial highlights Q4 2019
$2,191m net sales
0.5% organic sales growth*
10.5% operating margin
11.1% adj. operating margin*
$1.78 EPS - an increase
of 268%
$1.84 adj. EPS* - an
increase of 30%
Full year 2020 indications
3-4% net sales growth
3-4% organic sales growth
At least 9.5% adj. operating margin
Key business developments in the fourth quarter of
2019
- Organic growth* outperformed global light vehicle production by
5.9pp, with all regions outperforming LVP. Order intake share
remained high.
- Profitability improved despite global LVP decline, driven by
ramp-up of new programs, improved launch efficiency and the
structural efficiency program. Adjusted operating margin* and cash
flow improved.
- The structural efficiency program is on track, and we are
planning and implementing a multitude of strategic initiatives and
structural improvements supporting our medium-term profitability
target.
*For non-U.S. GAAP measures see enclosed reconciliation tables.
All figures refer to continued operations, excluding former
Electronics segment unless stated otherwise. All change figures in
this document compare to the same period of previous year except
when stated otherwise.
Key Figures
Dollars in
millions, except per share data
|
Q4
2019
|
Q4
2018
|
Change
|
FY
2019
|
FY
2018
|
Change
|
Net sales
|
$2,191
|
$2,193
|
(0.1)%
|
$8,548
|
$8,678
|
(1.5)%
|
Operating
income
|
$229
|
$21
|
992%
|
$726
|
$686
|
5.8%
|
Adjusted operating
income1)
|
$242
|
$240
|
1.0%
|
$774
|
$908
|
(15)%
|
Operating
margin
|
10.5%
|
1.0%
|
9.5pp
|
8.5%
|
7.9%
|
0.6pp
|
Adjusted operating
margin1)
|
11.1%
|
10.9%
|
0.2pp
|
9.1%
|
10.5%
|
(1.4)pp
|
Earnings per share,
diluted2, 3)
|
$1.78
|
$(1.06)
|
268%
|
$5.29
|
$4.31
|
23%
|
Adjusted earnings per
share, diluted1, 2, 3)
|
$1.84
|
$1.42
|
30%
|
$5.72
|
$6.83
|
(16)%
|
Operating cash
flow4)
|
$312
|
$287
|
8.7%
|
$641
|
$808
|
(21)%
|
Return on capital
employed5)
|
24.3%
|
2.4%
|
22pp
|
19.7%
|
16.8%
|
2.9pp
|
1) Excluding costs
for capacity alignment, antitrust related matters and separation of
our business segments. 2) Assuming dilution and net of treasury
shares. 3) Participating share awards with right to receive
dividend equivalents are (under the two-class method) excluded from
the EPS calculation. 4) 2018 management estimate for Continuing
Operations derived from cash flow including Discontinued
Operations. 5) Operating income and income from equity method
investments, relative to average capital employed.
|
Comments from Mikael Bratt,
President & CEO
Our performance progressed throughout the year and in the fourth
quarter, we saw the first year-on-year improvement in adjusted
operating margin* after the spin-off. Organic growth* was around
6pp above LVP growth in the fourth quarter and about 7pp above LVP
growth for the full year. Our cash flow remained strong in the
fourth quarter and the full year. I am pleased that 2019 became the
fifth straight year for Autoliv to have around 50% global order
share.
Global LVP declined by close to 6% in 2019, a sharp contrast to
the 1% growth that was expected when the year started. Combined
with higher raw material costs, a large number of product launches
and beginning to implement our medium term strategic initiatives,
2019 was indeed a challenge. However, it was also a year when we
continued to build the foundation for margin improvement in the
coming years.
With more than 100 projects being evaluated, we have set a high
pace in the planning and implementation of strategic initiatives
and structural improvements. These initiatives are key drivers to
our medium-term target of around 12% adjusted operating margin and
building the foundation to continue to create shareholder value. We
remain fully focused on delivering flawless execution of our strong
order book with a positive margin contribution.
In 2020 we expect improved adjusted operating margin despite
another year of declining LVP. This is based on that our organic
sales growth will outperform LVP by about 6pp, some support from
raw material costs and savings from the structural efficiency
program. Principal headwinds are the expected LVP decline, sharply
declining inflator replacement sales and costs for planning and
implementing the strategic initiatives with payback in later
years.
We expect 2020 seasonality to be even more pronounced than in
2019 in terms of quarterly profitability progression. The start of
the year will be challenging but we expect a significantly stronger
second half year.
Inquiries: Investors and Analysts
Anders Trapp
Vice President Investor Relations
Tel +46(0)8-58-72-06-71
Henrik Kaar
Director Investor Relations
Tel +46(0)8-58-72-06-14
Inquiries: Media
Stina Thorman
Vice President Communications
Tel +46(0)8-58-72-06-50
This information is information that Autoliv, Inc. is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the VP of Investor Relations set out above, at 12.00 CET on
January 28, 2020.
This information was brought to you by Cision
http://news.cision.com
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SOURCE Autoliv