Back to top

Autoliv (ALV) Sets Aside Funds to Cover Possible EC Fine

Read MoreHide Full Article

Autoliv, Inc. (ALV - Free Report) has announced that it is setting aside $210 million (165 million pounds) in the fourth quarter of 2018 as a cover for the possible fine to be imposed by the European Commission (EC), per Reuters. This Stockholm, Sweden-based auto safety equipment manufacturer believes that the EC is likely to enforce a fine, pertaining to the long-running cartel investigation.

The company has been under investigation since 2011 due to the allegation of anti-competitive behavior among suppliers of occupant safety systems in the European Union. In first-quarter 2018, the company had to pay a penalty of 8.1 million euro in relation to a smaller part of the investigation. Some other companies, which also faced penalties in the same investigation, were Toyoda Gosei, Takata, Marutaka and Tokai Rika.

Management of Autoliv now believes that the EC will seek to impose a fine in connection with the remaining portion of the investigation. The outcome of the investigation is likely to adversely affect Autoliv’s operating results.

Over the past six months, shares of Autoliv have underperformed the industry it belongs to. Over this time frame, shares of the company have plunged 47.8%, whereas the industry decreased 30.7%.

Currently, Autoliv carries a Zacks Rank #5 (Strong Sell).

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and America’s Car-Mart, Inc. (CRMT - Free Report) . While Allison Transmission and Fox Factory sport a Zacks Rank #1 (Strong Buy), America’s Car-Mart carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 8.3%.

Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 51.8%.

America’s Car-Mart has an expected long-term growth rate of 19.5%. Over the past six months, shares of the company have risengrown 11%.

Today's Stocks from Zacks’ Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>