The world’s largest auto safety products supplier, Autoliv, predicts marginally increased earnings margins for the year after it announced rising fourth quarter earnings that proved to overshadow market forecasts.
The company has been helped by the strong demand growth registered in Europe and the overall drop in commodity prices that allowed it to incur lower costs for raw materials. The parts maker now forecasted an adjusted operating margin of about 9.5 percent for 2015, compared to 9.1 percent last year. Sales also soared 6.2 percent in 2014 and the company expects at least a similar result for this year. “We ended 2014 with a quarter in which sales growth as well as operating margin exceeded our expectations,” commented CEO Jan Carlson in a statement released recently. The top executive said that the parts supplier was investing record amounts in both capital and research & development, but still expected to post an expanding overall operating margin.
Operating profit at the company, which specializes in producing safety auto products such as seat belts and airbags, went up from the 2013 figure of $203 million to $217 million last year, managing to beat an aggregated average forecast for $208 million polled by Reuters. Autoliv is also expected to profit from the mishaps of closely following competitor – Japan’s Takata Corp. – that has been entrenched in one of the largest auto safety scandals last year. Autoliv has already revealed last month it has agreements with automakers to increase output to up to 25 million airbag inflators by 2017, because of “airbag quality issues with another supplier.”
Via Automotive News Europe