Autoliv misses by $0.17, misses on revs; lowers organic sales growth guidance 50 bps to ~5.5%; reaffirms operating margin (93.40)
Reports Q3 (Sep) earnings of $1.25 per share, $0.17 worse than the Capital IQ Consensus Estimate of $1.42; revenues rose 4.2% year/year to $2.21 bln vs the $2.25 bln consensus.
- Quarterly organic sales grew by close to 5%. The adjusted operating margin was 8.5%.
- The expectation at the beginning of the quarter was for an organic sales growth of "around 6%" and an adjusted operating margin of "around 8.5%".
- The lower than expected organic sales growth was primarily due to unfavorable vehicle mix in China, but also due to lower overall production in the Chinese market. We had record operating cash flow for a third quarter of $212 million.
- For the fourth quarter of 2014 we expect organic sales to increase by around 2%, and an adjusted operating margin of around 9.5%. The expectation for the full year is now for organic sales growth of around 5.5%, and an adjusted operating margin of around 9%.