Autoliv Q2 Profit Falls - Update

(RTTNews) - Autoliv, Inc. (ALV), a supplier of automotive safety systems, Friday reported about 40 percent fall in second-quarter profit, reflecting legal costs, despite growth in sales.

For the second quarter, the company's net income fell 40.3 percent to $83.2 million from $139.4 million in the previous year. On a per share basis, earnings were $0.89, down from $1.44 per share reported last year.

Adjusted earnings per share for the recent quarter were $1.45, while the company posted $1.48 per share a year earlier.

On average, 10 analysts polled by Thomson Reuters expected earnings per share of $1.55 for the quarter. Analysts' estimates typically exclude one-time items.

During the quarter the company recorded legal costs related to settlements of class action lawsuits in the U.S. of around $70 million.

Net sales for the quarter grew 8.4 percent to $2.38 billion from $2.20 billion a year ago, whereas 10 analysts estimated revenues of $2.34 billion. Excluding positive currency effects of $22 million, organic sales growth was 7.4 percent.

Jan Carlson, chairman, president and CEO of the company said, "In the second quarter we saw solid growth across our markets, notably North America, Europe and Japan. The exception was Brazil where we saw a sharp decline in light vehicle production."

Looking ahead to third quarter, the company expects consolidated sales growth of around 7 percent, organic sales to increase by nearly 6 percent, and an adjusted operating margin of about 8.5 percent.

For full-year 2014, the firm currently sees organic sales growth of over 6 percent, and an adjusted operating margin of around 9 percent. Consolidated sales are expected to grow by close to 7 percent as effects from currencies are expected to be slightly positive.

ALV is currently trading at $104.21, down 0.34 percent.