Autoliv (ALIV) Q4 2004 earnings summary

Executive summary

• FY04 sales were $6.1 billion; operations spanned 29 countries, with 34,515 employees and 39,765 total headcount including temporary workers.

• Product portfolio covered occupant restraint systems, including airbags, seat belts, steering wheels, safety seats and related components.

Financial highlights

• Research, development and engineering expense was $368.4 million in 2004, versus $305.4 million in 2003 and $229.8 million in 2002.

• Joint ventures generated approximately $198 million of external sales in FY04; this includes Taiwan and Nanjing sales only until consolidation began on April 1 and October 1, respectively.

Outlook and guidance

• Profitability depends on reducing per-unit costs amid continuing customer price reductions and competitive pressure; fixed or maximum prices may apply to long-term supply arrangements.

• Capacity can generally be adjusted within weeks through shifts and within months through standardized lines, subject to raw-material and component availability and timely customer demand updates.

• Proposed US side-impact safety-test upgrades could be adopted during 2005, with new requirements used for vehicle certification as early as 2009.