Automotive safety systems manufacturer Autoliv reported adjusted earnings of US$ 1.65 per share in the first quarter of 2017, a decrease of 0.6% from US$ 1.66 per share reported a year ago. Operating profit rose to US$ 218 million from US$ 205 million in the same quarter last year, the company said. Earnings per share, on a reported basis, amounted to US$ 1.62 in the first quarter of 2017 compared with US$ 1.51 in the year-ago quarter.
The auto supplier with five production facilities in Mexico reported record consolidated quarter revenues of US$ 2.61 billion, up 7.3% year over year. Excluding negative currency translation effects and the impact of acquisitions, organic sales improved 4.4%, exceeding the company's expectation of more than 3%.
Operating income increased 6% to US$ 217.6 million (or 8.3% of sales) from US$ 205.2 million (or 8.4% of sales) in the year-ago quarter. Adjusted operating margin was 8.4% in the reported quarter, higher than the company's expectation of around 8%.
In its first quarter report the company flagged uncertainty about global vehicle production ahead. “Light vehicle production grew by almost 6% in the quarter, with growth in all regions. However, we currently see some uncertainties relating to light vehicle production growth, including high inventory levels and slower sales momentum, especially in North America and China. We continue to monitor the situation closely and are prepared to take necessary actions,” said the company in a statement.
Autoliv is a Swedish–American company with headquarters in Stockholm, Sweden and Auburn Hills, Michigan that in 1997 sprung from the merger of the Swedish company Autoliv AB and Morton Automotive Safety Products, Inc., a division of the American firm Morton International.
The company develops and manufactures automotive safety systems, including air bags, seat belt devices, night vision, and improved seating.
Along with its joint ventures, the company has around 80 facilities with more than 70,000 employees in 27 countries. In addition, Autoliv has 22 technical centers in nine countries around the world, with 19 test tracks.
The auto supplier owns five manufacturing sites in Mexico, located in Tijuana, Matamoros, Toluca and two facilities in Queretaro.