QUOTE AND NEWS
Automotive World  Feb 11  Comment 
Vehicle recyclers overpaid for cars with faulty Takata airbags, according to a new lawsuit filed against the supplier The post Takata scandal spreads: auto recyclers file claim, Autoliv shares the load appeared first on Automotive World.
Motley Fool  Jan 29  Comment 
Strength in the automakers has had a huge positive influence on the safety-system and component manufacturer.
Market Intelligence Center  Jan 26  Comment 
After Friday’s trading in Autoliv Inc (ALV) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 2.03% or 13.98% (for comparison purposes only), while providing 5.04% downside...
Benzinga  Jan 21  Comment 
Credit Suisse initiated coverage on shares of Autoliv, Inc. (NYSE: ALV) with a Neutral rating. Autoliv shares have surged 15.72% over the past 52 weeks, while the S&P 500 index has gained 9.63% in the same period. Autoliv's shares gained...
Benzinga  Jan 21  Comment 
Analysts at Credit Suisse initiated coverage on Paycom Software, Inc. (NYSE: PAYC) with a Outperform rating. The target price for Paycom Software is set to $30. Paycom Software's shares closed at $23.24 yesterday. Analysts at JMP Securities...
Benzinga  Jan 16  Comment 
Analysts at Atlantic Equities downgraded Gap Inc (NYSE: GPS) from Neutral to Underweight. The price target for Gap has been lowered from $43 to $35. Gap's shares closed at $40.31 yesterday. Analysts at Jefferies downgraded Family Dollar Stores...
Benzinga  Jan 16  Comment 
Analysts at RBC Capital downgraded Autoliv, Inc. (NYSE: ALV) from Sector Perform to Underperform. The price target for Autoliv has been lowered from $96 to $95. Autoliv shares have surged 11.95% over the past 52 weeks, while the S&P 500...




 

Autoliv, Inc. (NYSE: ALV) manufactures protection systems for automobiles, with a product portfolio consisting primarily of safety airbags, seat belts, and steering wheels.[1] Autoliv sells its products to automobile manufacturers such as Ford Motor Company (F), Nissan Motor (NSANY), General Motors (GM), and Volkswagen (VLKAY).[2]

Autoliv is the largest airbag and seat belt producer with 33% of the world market. Despite Autoliv's large size, it is heavily exposed to a few customers as sales to the company's five largest customers comprise nearly 60% of Autoliv's revenues.[3]

Business Overview

Business & Financial Metrics[4]

In 2009, ALV generated a net income of $10 million on revenues of $5.12 billion. This represents a 93.9% decrease in net income and a 20.9% decrease in revenues from 2008, when the company earned $165 million on $6.47 in revenues.

Business Segments

Autoliv's main products are airbags and seat belts, but the company also makes related automobile safety products, including night vision systems, steering wheels, and electronic control systems.[5] The company operates through a single reportable operating segment.[6]

Airbags and Associated Products

Airbags and Associated Products manufactures airbags and related products, such as airbag inflators and modules that control when the airbags deploy.[7] Autoliv's airbags include innovations such as the "Safety-Vent Airbag" which changes size and shape based on the weight and build of the driver or passenger it is protecting. Due to new federal laws in the U.S. requiring that all passenger vehicles in the United States have side curtain airbags by 2012, Autoliv said it expects side curtain airbags to be this segment's strongest growth driver.[8]

Seat Belts and Associated Products

In addition to seat belts, the Seat Belts and Associated Products segment makes related components like pretensioners, which tighten the seat belt right before a crash to help prevent injury, and load limiters, which loosen seat belt tension in a controlled way to decrease pressure on the occupants chest.[9]

Key Trends and Forces

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Exchange rates affect ALV's revenues

Because Autoliv reports its revenue in U.S. dollars but does 75% of its business outside of North America, its revenue is highly exposed to fluctuations in exchange rates. When foreign currencies depreciate, the dollar value of Autoliv's international revenues decreases. On the other hand, when the value of the dollar decreases (foreign currencies appreciate), the dollar value of Autoliv's international revenues increases.

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References

  1. ALV 2007 10-K Exhibit 13: Note 19 to Consolidated Financial Statements
  2. ALV 2007 10-K Exhibit 13: Note 19 to Consolidated Financial Statements
  3. ALV 10-K Risk Factors: Our business could be materially and adversely affected if we lost any of our largest customers
  4. ALV 2009 10-K Ex-13  
  5. ALV 2007 10-K Item 1 Business: Business
  6. ALV 2009 10-K  
  7. ALV 2007 10-K Item 1 Business: General
  8. ALV 2007 Annual Report: Technology, pg 18
  9. ALV 2007 Annual Report: Autoliv-Driven for Life, pg 3
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