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Autoliv Declared Dividend of $0.58 Per Share

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Price movement

Autoliv (ALV) has a market cap of $9.5 billion. It fell by 0.07% and closed at $106.91 per share on August 15, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.34%, -2.7%, and -13.4%, respectively, on the same day.

Notably, ALV is now trading 0.25% below its 20-day moving average, 4.6% below its 50-day moving average, and 7.1% below its 200-day moving average.

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Related ETF and peers

The iShares Dow Jones US ETF (IYY) invests 0.05% of its holdings in Autoliv and tracks a broad, cap-weighted index of US companies, covering 95% of the US market. The YTD price movement of IYY was 8.5% on August 15.

The market caps of Autoliv’s competitors are as follows:

  • Delphi Automotive (DLPH)—$18.1 billion
  • Magna International (MGA)—$16.2 billion
  • Gentex (GNTX)—$5.3 billion

Autoliv declared a dividend

Autoliv has declared a quarterly dividend of $0.58 per share on its common stock. The dividend will be paid on December 1, 2016, to shareholders of record at the close of business on November 16, 2016.

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Performance of Autoliv in 2Q16

For 2Q16, Autoliv reported net sales of $2.6 billion, which is a rise of 13% over the $2.3 billion in 2Q15. Sales of airbag products, seatbelt products, passive safety electronic products, and active safety products rose by 4.0%, 2.7%, 13.6%, and 40.7%, respectively, between 2Q15 and 2Q16. The company reported brake control systems sales totaling $133.4 million in 2Q16.

The company’s cost of sales as a percentage of net sales and operating income rose by 3.2% and 1.9%, respectively, between 2Q15 and 2Q16.

Net income and EPS

Autoliv’s net income and EPS (earnings per share) rose to $148.4 million and $1.68, respectively, in 2Q16, as compared to $136.7 million and $1.55, respectively, in 2Q15. It reported adjusted EPS of $1.75 in 2Q16, which is a rise of 8.0% over 2Q15.

The company’s cash and cash equivalents fell by 16.5%, and its inventories rose by 5.5% between 4Q15 and 2Q16. Its current ratio and long-term debt-to-equity ratio fell to 1.7x and 0.46x, respectively, in 2Q16, as compared with 1.8x and 0.53x, respectively, in 4Q15.

Projection

The company has made the following projections for fiscal 2016:

  • organic sales growth of ~6%
  • sales growth from merger and acquisition activities (ANBS and MACOM) of ~6%.
  • adjusted operating margin of 7.5%, which excludes costs for capacity alignments and antitrust-related matters

The company has made the following projections for fiscal 3Q16:

  • organic sales growth of ~7%
  • sales growth from merger and acquisition activities (ANBS and MACOM) of ~5%
  • adjusted operating margin of more than 8.5%, which excludes costs for capacity alignments and antitrust-related matters and includes integration and purchase accounting related costs for the joint venture with Nissin Kogyo (ANBS) of $20 million–$30 million
  • tax rate of ~29%, which excludes any discrete items
  • operational cash flow of ~0.8 billion

In the next part of this series, we’ll discuss Procter & Gamble.

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