This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Autoliv's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: ALV

During the quarter, we returned $45 million to our shareholders in the form of the dividend which is a new record payout. This concludes my formal comments around the second quarter.

And I now want to look into the outlook on the next page. On the next page, we have the third quarter light vehicle production according to IHS. That is expected to increase 2.1% year-over-year. In April, the expectation was an increase of 3.8%. This change in light vehicle production is primarily due to a lower production outlook for Western Europe, China and rest of Asia. However, IHS still expects a year-over-year growth in North America, Japan and China of 8% each, while the production in Europe is expected to be down 8%.

On the next page, we have our outlook for the third quarter. Based on our customer call-offs we expect to continue to offset this strong negative head wins from Western Europe and achieve an organic growth rate of nearly 4%. This growth is due to our long term investments in China in the active safety that are paying off and due to important platform launchers.

For the quarter we expect an underlying operating margin of approximately 10%. Sequentially, our margin improvement from the second quarter is mainly due to better utilisation of our capacity investment in China and R&D net.

On the next slides, we see some of our key launches in China. These models will contribute to our market share gains and the overall market out performance in the second half of this year. The annual revenues for these models are the range of $10 million to $40 million each. On this great wall H6 platform we have a good example where Autoliv supplies all of the passive safety product. These launches will have Autoliv reach close to $1.2 billion of revenue in China this year.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs