Autoliv (ALIV) Q4 2003 earnings summary

Executive summary

• FY 2003 sales were $5.3 billion; airbags and related products contributed 68% of sales, with seat belts and related products at 32%.

• Operations spanned 29 countries, with 32,100 employees and 4,900 temporary hourly workers at year-end.

Financial highlights

• R&D and engineering expense was $305.4 million in 2003, versus $229.8 million in 2002 and $200.8 million in 2001.

• A wholly owned subsidiary received $35 million as one-time consideration for past and future use of certain initiator and inflator technologies.

• A U.S. federal court awarded a supplier approximately $27 million plus interest in December 2003; an appeal was planned.

Outlook and guidance

• Advanced-airbag requirements were expected to raise North American frontal-airbag system unit prices and expand the market, with possible effects in other markets.

• Pricing pressure is expected to continue; profitability depends partly on reducing per-unit costs and developing and marketing product improvements.