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With this, the company has also beaten the Zacks Consensus Estimate of $1.33 per share. Improved sales due to market recovery, especially in the “Triad (North America, Europe and Japan) along with the positive impact from restructuring efforts, initiated in July 2008, led the improved results.
Consolidated net sales amounted to $1.72 billion, a robust year-over-year increase of 86%, in line with the guidance of achieving a sales growth of more than 70%. Consequently, organic sales (i.e., sales excluding currency effects and acquisitions/divestitures) grew 64%, better than Autoliv’s guidance of an organic sales increase of “more than 50% for the quarter. This was attributable to strong sales growth in the Triad as well as in China and South Korea.
Sales of Airbag Products increased a staggering 95% to $1.15 billion, with a 71% rise in organic sales. This was attributable to new business with GM ([url=http://www.zacks.com/stock/quote/mtlqq]MTLQQ[/url]), Ford ([url=http://www.zacks.com/stock/quote/f]F[/url]), Hyundai, Kia and a strong sales recovery in Japan, especially with Toyota ([url=http://www.zacks.com/stock/quote/tm]TM[/url]), Mitsubishi, Nissan ([url=http://www.zacks.com/stock/quote/nsany]NSANY[/url]) and Honda ([url=http://www.zacks.com/stock/quote/hmc]HMC[/url]).
Sales of Seatbelt Products rose 69% to $575 million, with a 51% growth in organic sales. This was driven by new business with Ford, GM, and Hyundai as well as strong sales recoveries, especially with Renault, Daimler ([url=http://www.zacks.com/stock/quote/dai]DAI[/url]), Citroën and Mitsubishi.
Sales in Europe went up 46% to $730 million, with a 29% rise in organic sales. The strong performance reflected recovery in European light vehicle production, new business for Opel Astra and strong demand for the Peugeot 206+, the Renault Mégane and the Mercedes E-class models.
Sales in North America leapt 138% to $486 million with a 100% growth in organic sales. This was attributable to a favorable vehicle mix and a strong rise in production volumes of Ford’s F-series and E-Series; and of Chevrolet’s Equinox, Traverse and Silverado.
Sales in Japan jacked up 128% to $193 million, with a 116% rise in organic sales. This reflected a strong recovery in the production of premium cars, SUVs and other exported vehicles with high safety content for the North American and West European markets along with new business for Toyota’s Prius 2010 and Alphard; and Honda’s StepWagon.
Sales in Rest of the World shot up 124% to $312 million, with a 104% growth in organic sales. The strong performance reflected organic sales increases of 137% in China, 44% in India and 110% in South Korea. This included new business for Chinese customers such as Geely’s Emgrand EC7, Great Wall’s CoolBear, Florid and Hover; Chery’s A5 and S18; FAW’s Besturn; Jianghuai’s Rein; Citroën’s C5; and Peugeot’s 408. In India, Autoliv benefited from new business with Maruti Suzuki’s Alto and Hyundai’s i10.
Autoliv had cash and cash equivalents of $302 million as of March 31, 2010, compared to $935.4 million in the year-ago period. Long-term debt reduced significantly to $792.5 million from $1.75 billion as of March 31, 2009. The long-term debt-to-capitalization ratio stood at 24% as of March 31, 2010.
In the quarter, cash flow from operations increased to $148.9 million from an outflow of $8.8 million a year ago, due primarily to an improvement in net income. Capital expenditures (net) stood at $36.1 million in the quarter compared to $33.7 million in the prior-year quarter.
Autoliv’s consolidated sales are expected to grow more than 40% in the second quarter and about 30% to $6.6 billion for the year. Organic sales are expected to grow at least 30% during the upcoming quarter and 20% during 2010.
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