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Autoliv's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Jan Carlson

Okay, thank you Mats. With that, we’ll turn the page where we find the Safe Harbor statement, which as you know is an integrated part of the presentation. During the presentation, we will reference some non-U.S. GAAP measures. The reconciliations to U.S. GAAP are disclosed in our quarterly press release and in the 10Q.

Moving on to the next page, we continue to execute on our growth and operational strategies. In the first quarter we achieved a new record sales of $2.2 billion. This was mainly due to our strong growth in active safety China and Korea. This record sale performance was despite European light vehicle registration in March was the lowest level in 15 years.

We met our EBIT margin guidance of 10% for the first quarter and we are on track to achieve our full-year margin indication of 10 to 11%, excluding costs related to capacity alignments and anti-trust investigations. We now anticipate the cost for the capacity alignment program to be in the range of 60 to $80 million in 2012. The majority of the cash outlay and savings for this are expected to be in 2013 and ’14.

Over the last several quarters, we have gradually capacity in the growth markets and stepped up our technology investments for active safety. We will see the benefits from these investments accelerating during the second half of this year as we continue to increase our market share in both active safety and in China.

Regarding the anti-trust investigations, we are able to report that we are making progress. Based on the current status of the U.S. investigation, the company has recorded an accrual of $14.5 million U.S. in the first quarter results. This reflects management’s best estimate at this time of the fine for the final resolution of the DOJ investigation. Otherwise, there is no further information that we are able to discuss since both investigations are still ongoing.

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