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Autoliv Trims Full-Year Outlook After Profit Drops 13%
Sweden's Autoliv Inc. netted $126 million in the second quarter of 2012 compared with $146 million a year earlier.
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Sweden's Autoliv Inc. netted $126 million in the second quarter of 2012 compared with $146 million a year earlier.
Revenue eked out a 1% gain to $2.1 billion in the April-June period on higher sales of airbags, seatbelts and steering wheels. Operating earnings slipped 7% to $190 million, thus generating an operating margin of 9.1% compared with 10% a year earlier.
Autoliv blames weaker income on unfavorable exchange rates, higher costs for raw materials, R&D and aligning output to demand. Revenue gains of 15% to $730 million in the Americas and 21% to $272 million in China mostly offset a 20% decline to $673 million in Europe.
The company has lowered its full-year outlook because it expects further deterioration in Europe's deteriorating auto market. Autoliv now expects revenue to rise 1% from last year's $8.2 billion, down from its earlier forecast of a 4% advance. The company predicts a 10% operating margin compared to its previous estimate of 10%-11%.
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