Autoliv Q4 adjusted earnings rise 8%; strong sales growth expected in 2018
If you watch the numbers of auto suppliers, you can start to gauge just how well certain automakers are going to do in the near future. At the very least it can be indicative of the enthusiasm of the auto market. In January, Swedish auto supplier, Autoliv, announced that their fourth quarter earnings have been adjusted to 8.2%, with revenues up 5%. The company makes airbags and seatbelts for a host of mostly luxury automakers, and is forecasting a 7% increase in sales for the 2018 fiscal year.
A statement released by Autoliv stated that its operating profit for the fourth quarter of 2017 rose to 263 million compared to 243 million for the fourth quarter of 2016. This beat the estimated $247 million that was forecasted by Rueters in the summer of 2017. Total revenue for the quarter was $2.72 billion. There is a lot of money in automotive safety!
Autoliv CEO Jan Carlson said of the end of the year, “The fourth quarter ended a year of records and exciting announcements…The full year 2017 was also the best year we have reported for sales and gross profit.” This is pleasant news to those who are invested in nearly any portion of the automotive industry because automakers buying more seat belts and airbags simply translates to them expecting to sell lots of cars in 2018 and beyond.
A majority of the increase came from non-American companies, as sales there fell 6.2%. The company has announced nine new product launches in the last part of 2017 including new deals with Volvo, Jeep, Mecedes-Benz, Infiniti, BMW, Hyundai, and Fiat.