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8-K - FORM 8-K - AUTOLIV INC | d330769d8k.htm |
Exhibit 99.1
Financial Report October - December 2016
Record sales for the quarter and the full year, continued strong order intake
(Stockholm, February 2, 2017) Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) the worldwide leader in automotive safety systems reported record consolidated sales of $10,074 million in 2016 and the Company increased its R,D&E efforts for future growth while indicating 2017 adjusted operating margin in line with its long term target range.
For the three-month period ended December 31, 2016, the Company reported record sales of $2,604 million. Quarterly organic sales* grew by 1.1% (for non-U.S. GAAP measures see enclosed reconciliation tables). The fourth quarter of 2016 included approximately three less working days compared to 2015, decreasing the year-over-year organic growth* by around 5pp. On an equivalent basis the organic growth* was around 6%. Operating margin was 9.2%. The adjusted operating margin* was 9.3%. The expectation at the beginning of the quarter was for quarterly organic sales to be flat and an adjusted operating margin of more than 9%.
For the first quarter of 2017, the Company expects organic sales to increase by more than 3% and an adjusted operating margin of around 8%. The expectation for the full year is for organic sales growth of around 4% and an adjusted operating margin of around 8.5%. R,D&E investments, net is expected to be at the high end of the 6.5-7.0% of sales range, a significant year-over-year increase. (See the Outlook section on the next page for further discussion of organic sales and adjusted operating margin, which are forward-looking non-U.S. GAAP measures).
Key Figures
(Dollars in millions, except per share data) |
Q4 2016 | Q4 2015 | Change | |||||||||
Net sales |
$ | 2,603.8 | $ | 2,519.5 | 3.3 | % | ||||||
Operating income |
$ | 238.7 | $ | 281.3 | (15.1 | )% | ||||||
Operating margin |
9.2 | % | 11.2 | % | (2.0 | )pp | ||||||
Adjusted operating margin1) |
9.3 | % | 11.1 | % | (1.8 | )pp | ||||||
Earnings per share, diluted2) |
$ | 1.67 | $ | 2.10 | (20.5 | )% | ||||||
Adjusted earnings per share, diluted1, 2) |
$ | 1.71 | $ | 2.08 | (17.8 | )% | ||||||
Operating cash flow |
$ | 294.2 | $ | 321.3 | (8.4 | )% |
1) Excluding costs for capacity alignment and antitrust related matters.
2) Assuming dilution and net of treasury shares.
Comments from Jan Carlson, Chairman, President & CEO
The fourth quarter developed largely in line with our expectations. I am particularly pleased with our growth in Asia, where we, for the first time, recorded sales above $1 billion for a quarter.
Regionally, the light vehicle production in China grew by almost 15% in the quarter and we grew particularly well with the domestic OEMs. For the full year, our organic growth* in China was in line with the strong light vehicle production growth. North American light vehicle production grew modestly in the quarter, while our growth was hampered by lower sales of replacement inflators and an unfavorable model mix. European light vehicle production continued to grow from a high level.
In active safety, we are pleased that we recorded double digit sales growth in the quarter for our core products radar and vision, although this was offset by declines in sales of non-core products. The strength of our offering in active safety was reflected in that both our order intake and win rate for active safety products increased substantially for the full year. We are also pleased that we won an Autoliv software based vision contract with a new Europe-based premium OEM. By signing a definitive agreement to form the joint venture Zenuity with Volvo Cars, we are creating a solid platform for developing software for autonomous driving and driver assistance systems. Autoliv-Nissin Brake Systems is expanding its customer base, winning a $1.1 billion total contract value for our new braking system with a Detroit-based OEM on a major platform.
Passive Safety recorded its highest order intake ever in 2016, winning about 50% of available order value for the second consecutive year. We remain confident that we are on the right path to surpass our $12 billion corporate sales target for 2019.
We are pleased that we in 2016 were able to manage unprecedented order intake levels that generate high levels of investments and costs for growth, and still deliver a strong cash flow and an adjusted operating margin within our long term target range. We continue to monitor the overall macro- and industry situation and we are ready to take necessary actions while focusing on executing on our growth strategy with continued quality focus.
An earnings conference call will be held at 3:00 p.m. (CET) today, February 2. To follow the webcast or to obtain the pin code and phone number, please access www.autoliv.com. The conference slides will be available on our web site as soon as possible following the publication of this earnings report.
Q4 Report 2016 | 4th Quarter |
Consolidated Sales
Sales by Product
Change vs. same quarter last year | ||||||||||||||||||||
Sales (MUSD) | Reported (U.S. GAAP) |
Acquisitions/ Divestitures |
Currency effects1) |
Organic change* |
||||||||||||||||
Airbags2) |
$ | 1,348.1 | (2.8 | )% | | (1.9 | )% | (0.9 | )% | |||||||||||
Seatbelts2) |
$ | 688.0 | 0.5 | % | | (3.0 | )% | 3.5 | % | |||||||||||
Passive Safety Electronics |
$ | 277.6 | 7.1 | % | | (0.9 | )% | 8.0 | % | |||||||||||
Active Safety Products |
$ | 179.0 | (5.0 | )% | | (2.9 | )% | (2.1 | )% | |||||||||||
Brake Control Systems |
$ | 111.1 | 100.0 | % | 100.0 | % | | | ||||||||||||
Total |
$ | 2,603.8 | 3.3 | % | 4.4 | % | (2.2 | )% | 1.1 | % |
1) Effects from currency translations.
2) Including Corporate and other sales.
2 |
Q4 Report 2016 | 4th Quarter |
Sales by Region
Change vs. same quarter last year | Reported (U.S. GAAP) |
Acquisitions/ Divestitures |
Currency effects1) |
Organic change* |
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Sales (MUSD) | ||||||||||||||||||||||
Asia |
$ | 1,039.4 | 17.5 | % | 9.1 | % | (1.2 | )% | 9.6 | % | ||||||||||||
Whereof: |
China |
$ | 538.1 | 14.1 | % | 8.3 | % | (6.4 | )% | 12.2 | % | |||||||||||
Japan |
$ | 255.1 | 34.3 | % | 21.7 | % | 10.8 | % | 1.8 | % | ||||||||||||
Rest of Asia |
$ | 246.2 | 10.4 | % | | (0.2 | )% | 10.6 | % | |||||||||||||
Americas |
$ | 831.1 | (6.1 | )% | 3.5 | % | (2.9 | )% | (6.7 | )% | ||||||||||||
Europe |
$ | 733.3 | (2.2 | )% | | (2.5 | )% | 0.3 | % | |||||||||||||
Global |
$ | 2,603.8 | 3.3 | % | 4.4 | % | (2.2 | )% | 1.1 | % |
1) Effects from currency translations.
Launches in the 4th Quarter
Land Rovers new Discovery Passenger airbag, side airbag, inflatable curtains, seatbelts with pretensioners and safety electronics. |
Alfa Romeos new Stelvio Passenger airbag, knee airbag, inflatable curtains and cable cutters. |
Great Walls new Haval H2s Driver airbag with steering wheel, passenger airbag, side airbag, inflatable curtains, seatbelts with pretensioners and safety electronics. | ||||||||
Toyotas new C-HR Driver airbag with steering wheel, side airbag, inflatable curtains and seatbelts with pretensioners. |
Hyundais new Grandeur/Azera Driver airbag, passenger airbag, knee airbag, side airbag, inflatable curtains and safety electronics. |
BMWs new 5 Series Driver airbag with steering wheel, passenger airbag, seatbelts with pretensioners, night vision systems and cable cutters. | ||||||||
Hondas new CR-V Radar system, brake control system and seatbelts with pretensioners. |
Minis new Countryman Driver airbag with steering wheel, knee airbag, camera system and seatbelts with pretensioners. |
Mazdas new CX-5 Driver airbag with steering wheel. |
3
Q4 Report 2016 | 4th Quarter |
Earnings
(Dollars in millions, except per share data) |
Q4 2016 | Q4 2015 | Change | |||||||||
Net Sales |
$ | 2,603.8 | $ | 2,519.5 | 3.3 | % | ||||||
Gross profit |
$ | 534.2 | $ | 520.7 | 2.6 | % | ||||||
% of sales |
20.5 | % | 20.7 | % | (0.2 | )pp | ||||||
S,G&A |
$ | (126.2 | ) | $ | (108.4 | ) | 16.4 | % | ||||
% of sales |
(4.8 | )% | (4.3 | )% | (0.5 | )pp | ||||||
R,D&E net |
$ | (150.3 | ) | $ | (126.6 | ) | 18.7 | % | ||||
% of sales |
(5.8 | )% | (5.0 | )% | (0.8 | )pp | ||||||
Operating income |
$ | 238.7 | $ | 281.3 | (15.1 | )% | ||||||
% of sales |
9.2 | % | 11.2 | % | (2.0 | )pp | ||||||
Adjusted operating income1) |
$ | 242.9 | $ | 279.1 | (13.0 | )% | ||||||
% of sales |
9.3 | % | 11.1 | % | (1.8 | )pp | ||||||
Income before taxes |
$ | 228.0 | $ | 264.9 | (13.9 | )% | ||||||
Tax rate |
36.7 | % | 29.8 | % | 6.9 | pp | ||||||
Net income |
$ | 144.2 | $ | 185.9 | (22.4 | )% | ||||||
Net income attributable to controlling interest |
$ | 147.7 | $ | 185.5 | (20.4 | )% | ||||||
Earnings per share, diluted2) |
$ | 1.67 | $ | 2.10 | (20.5 | )% | ||||||
Adjusted earnings per share, diluted1, 2) |
$ | 1.71 | $ | 2.08 | (17.8 | )% |
1) Excluding costs for capacity alignment and antitrust related matters.
2) Assuming dilution and net of treasury shares.
4
Q4 Report 2016 | 4th Quarter |
Light Vehicle Production Development
Change vs. same quarter last year | ||||||||||||||||||||||||
China | Japan | RoA | Americas | Europe | Total | |||||||||||||||||||
LVP1) |
14.7 | % | 2.4 | % | 2.7 | % | 1.7 | % | 2.8 | % | 7.1 | % |
1) Source: IHS Jan 16, 2017.
Headcount
December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
Headcount |
70,293 | 68,778 | 64,088 | |||||||||
Whereof: Direct workers in manufacturing |
68 | % | 68 | % | 72 | % | ||||||
Best Cost Countries |
75 | % | 74 | % | 75 | % | ||||||
Temporary personnel |
13 | % | 13 | % | 15 | % |
5
Q4 Report 2016 | 4th Quarter |
Segment Information
Passive Safety
(Dollars in millions) |
Q4 2016 | Q4 2015 | Change | Organic change* |
||||||||||||
Segment sales |
$ | 2,035.3 | $ | 2,068.3 | (1.6 | )% | 0.7 | % | ||||||||
Segment operating income |
$ | 228.5 | $ | 264.5 | (13.6 | )% | ||||||||||
Segment operating margin |
11.2 | % | 12.8 | % | (1.6 | )pp |
Electronics
(Dollars in millions) |
Q4 2016 | Q4 2015 | Change | Organic change* |
||||||||||||
Segment sales |
$ | 584.1 | $ | 463.2 | 26.1 | % | 3.4 | % | ||||||||
Segment operating income |
$ | 29.8 | $ | 32.3 | (7.7 | )% | ||||||||||
Segment operating margin |
5.1 | % | 7.0 | % | (1.9 | )pp |
Headcount
December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
Headcount Passive Safety segment |
63,134 | 61,820 | 59,861 | |||||||||
Headcount Electronics segment |
6,778 | 6,588 | 4,080 |
6
Q4 Report 2016 | Full Year |
Consolidated Sales Full Year 2016
For the full year 2016, consolidated sales increased to $10,074 million** compared to $9,170 million for the full year 2015. Excluding negative currency effects of close to 2%, and acquisition effects from ANBS and MACOM of close to 5%, the organic sales growth* was more than 7%. All regions of the Company showed organic sales growth for 2016.
Sales by Product
Year over year change | ||||||||||||||||||||
Sales (MUSD) | Reported (U.S. GAAP) |
Acquisitions/ Divestitures |
Currency effects1) |
Organic change* |
||||||||||||||||
Airbags2) |
$ | 5,255.8 | 4.4 | % | | (1.7 | )% | 6.1 | % | |||||||||||
Seatbelts2) |
$ | 2,665.2 | 2.5 | % | | (2.9 | )% | 5.4 | % | |||||||||||
Passive Safety Electronics |
$ | 1,031.0 | 11.7 | % | | (0.6 | )% | 12.3 | % | |||||||||||
Active Safety Products |
$ | 738.6 | 20.9 | % | 5.7 | % | (0.9 | )% | 16.1 | % | ||||||||||
Brake Control Systems |
$ | 383.0 | 100.0 | % | 100.0 | % | | | ||||||||||||
Total |
$ | 10,073.6 | 9.9 | % | 4.6 | % | (1.9 | )% | 7.2 | % |
1) Effects from currency translations.
2) Including Corporate and other sales.
Sales by Region
Year over year change | Reported (U.S. GAAP) |
Acquisitions/ Divestitures |
Currency effects1) |
Organic change* |
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Sales (MUSD) | ||||||||||||||||||||||
Asia | $ | 3,617.4 | 17.5 | % | 8.7 | % | (1.0 | )% | 9.8 | % | ||||||||||||
Whereof: | China | $ | 1,766.2 | 15.9 | % | 7.4 | % | (5.4 | )% | 13.9 | % | |||||||||||
Japan | $ | 949.7 | 42.2 | % | 23.1 | % | 11.7 | % | 7.4 | % | ||||||||||||
Rest of Asia | $ | 901.5 | 1.8 | % | | (2.8 | )% | 4.6 | % | |||||||||||||
Americas | $ | 3,380.4 | 3.5 | % | 4.6 | % | (3.5 | )% | 2.4 | % | ||||||||||||
Europe | $ | 3,075.8 | 8.8 | % | | (1.0 | )% | 9.8 | % | |||||||||||||
Global |
$ | 10,073.6 | 9.9 | % | 4.6 | % | (1.9 | )% | 7.2 | % |
1) Effects from currency translations.
7 |
Q4 Report 2016 | Full Year |
Earnings
(Dollars in millions, except per share data) |
Full Year 2016 |
Full Year 2015 |
Change | |||||||||
Net Sales |
$ | 10,073.6 | $ | 9,169.6 | 9.9 | % | ||||||
Gross profit |
$ | 2,057.0 | $ | 1,844.1 | 11.5 | % | ||||||
% of sales |
20.4 | % | 20.1 | % | 0.3 | pp | ||||||
S,G&A |
$ | (476.1 | ) | $ | (411.5 | ) | 15.7 | % | ||||
% of sales |
(4.7 | )% | (4.5 | )% | (0.2 | )pp | ||||||
R,D&E net |
$ | (651.0 | ) | $ | (523.8 | ) | 24.3 | % | ||||
% of sales |
(6.5 | )% | (5.7 | )% | (0.8 | )pp | ||||||
Operating income |
$ | 847.7 | $ | 727.8 | 16.5 | % | ||||||
% of sales |
8.4 | % | 7.9 | % | 0.5 | pp | ||||||
Adjusted operating income1) |
$ | 884.9 | $ | 893.3 | (0.9 | )% | ||||||
% of sales |
8.8 | % | 9.7 | % | (0.9 | )pp | ||||||
Income before taxes |
$ | 803.8 | $ | 675.7 | 19.0 | % | ||||||
Tax rate |
30.1 | % | 32.3 | % | (2.2 | )pp | ||||||
Net income |
$ | 561.6 | $ | 457.5 | 22.8 | % | ||||||
Net income attributable to controlling interest |
$ | 567.1 | $ | 456.8 | 24.1 | % | ||||||
Earnings per share, diluted2) |
$ | 6.42 | $ | 5.17 | 24.2 | % | ||||||
Adjusted earnings per share, diluted1, 2) |
$ | 6.75 | $ | 6.65 | 1.5 | % |
1) Excluding costs for capacity alignment and antitrust related matters (but including settlements in H1, 2015).
2) Assuming dilution and net of treasury shares.
8
Q4 Report 2016 | Full Year |
Cash Flow and Balance Sheet
Light Vehicle Production Development
Year over year change | ||||||||||||||||||||||||
China | Japan | RoA | Americas | Europe | Total | |||||||||||||||||||
LVP1) |
13.7 | % | (0.4 | )% | 0.5 | % | (0.1 | )% | 2.8 | % | 4.7 | % |
1) Source: IHS Jan 16, 2017.
9
Q4 Report 2016 | Full Year |
Segment Information
Passive Safety
(Dollars in millions) |
Full Year 2016 |
Full Year 2015 |
Change | Organic change* |
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Segment sales |
$ | 7,918.8 | $ | 7,621.2 | 3.9 | % | 6.0 | % | ||||||||
Segment operating income |
$ | 817.7 | $ | 669.2 | 22.2 | % | ||||||||||
Segment operating margin |
10.3 | % | 8.8 | % | 1.5pp |
Electronics
(Dollars in millions) |
Full Year 2016 |
Full Year 2015 |
Change | Organic change* |
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Segment sales |
$ | 2,215.6 | $ | 1,588.7 | 39.5 | % | 13.3 | % | ||||||||
Segment operating income |
$ | 61.5 | $ | 64.5 | (4.7 | )% | ||||||||||
Segment operating margin |
2.8 | % | 4.1 | % | (1.3 | )pp |
Headcount
December 31, 2016 | December 31, 2015 | |||||||
Headcount Passive Safety segment |
63,134 | 59,861 | ||||||
Headcount Electronics segment |
6,778 | 4,080 |
10
Q4 Report 2016 |
11
Q4 Report 2016 |
Safe Harbor Statement
12
Q4 Report 2016 |
Key Ratios
Quarter October - December | Full Year | Full Year | ||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Earnings per share, basic |
$ | 1.67 | $ | 2.11 | $ | 6.43 | $ | 5.18 | ||||||||
Earnings per share, diluted1) |
$ | 1.67 | $ | 2.10 | $ | 6.42 | $ | 5.17 | ||||||||
Total parent shareholders equity per share |
$ | 41.69 | $ | 39.22 | $ | 41.69 | $ | 39.22 | ||||||||
Cash dividend paid per share |
$ | 0.58 | $ | 0.56 | $ | 2.30 | $ | 2.22 | ||||||||
Operating working capital, $ in millions2) |
579 | 570 | 579 | 570 | ||||||||||||
Capital employed, $ in millions3) |
4,240 | 3,670 | 4,240 | 3,670 | ||||||||||||
Net debt, $ in millions2) |
313 | 202 | 313 | 202 | ||||||||||||
Net debt to capitalization, %4) |
7 | 6 | 7 | 6 | ||||||||||||
Gross margin, %5) |
20.5 | 20.7 | 20.4 | 20.1 | ||||||||||||
Operating margin, %6) |
9.2 | 11.2 | 8.4 | 7.9 | ||||||||||||
Return on total equity, %7) |
14.5 | 21.9 | 14.6 | 13.6 | ||||||||||||
Return on capital employed, %8) |
22.2 | 30.7 | 20.3 | 20.4 | ||||||||||||
Average no. of shares in millions1) |
88.5 | 88.3 | 88.4 | 88.4 | ||||||||||||
No. of shares at period-end in millions9) |
88.2 | 88.1 | 88.2 | 88.1 | ||||||||||||
No. of employees at period-end10) |
61,502 | 54,600 | 61,502 | 54,600 | ||||||||||||
Headcount at period-end11) |
70,293 | 64,088 | 70,293 | 64,088 | ||||||||||||
Days receivables outstanding12) |
70 | 65 | 74 | 73 | ||||||||||||
Days inventory outstanding13) |
31 | 29 | 33 | 33 |
1) Assuming dilution and net of treasury shares.
2) Non-U.S. GAAP measure; for reconciliation see enclosed tables below.
3) Total equity and net debt.
4) Net debt in relation to capital employed.
5) Gross profit relative to sales.
6) Operating income relative to sales.
7) Net income relative to average total equity.
8) Operating income and income from equity method investments, relative to average capital employed.
9) Excluding dilution and net of treasury shares.
10) Employees with a continuous employment agreement, recalculated to full time equivalent heads.
11) Includes temporary hourly personnel.
12) Outstanding receivables relative to average daily sales.
13) Outstanding inventory relative to average daily sales.
13
Q4 Report 2016 |
Consolidated Statements of Net Income
Quarter October - December | Full Year | Full Year | ||||||||||||||
(Dollars in millions, except per share data, unaudited) |
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales |
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Airbag products1) |
$ | 1,348.1 | $ | 1,386.9 | $ | 5,255.8 | $ | 5,036.2 | ||||||||
Seatbelt products1) |
688.0 | 684.9 | 2,665.2 | 2,599.1 | ||||||||||||
Passive safety electronic products |
277.6 | 259.3 | 1,031.0 | 923.2 | ||||||||||||
Active safety products |
179.0 | 188.4 | 738.6 | 611.1 | ||||||||||||
Brake control systems |
111.1 | | 383.0 | | ||||||||||||
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Total net sales |
$ | 2,603.8 | $ | 2,519.5 | $ | 10,073.6 | $ | 9,169.6 | ||||||||
Cost of sales |
(2,069.6 | ) | (1,998.8 | ) | (8,016.6 | ) | (7,325.5 | ) | ||||||||
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Gross profit |
$ | 534.2 | $ | 520.7 | $ | 2,057.0 | $ | 1,844.1 | ||||||||
Selling, general & administrative expenses |
(126.2 | ) | (108.4 | ) | (476.1 | ) | (411.5 | ) | ||||||||
Research, development & engineering expenses, net |
(150.3 | ) | (126.6 | ) | (651.0 | ) | (523.8 | ) | ||||||||
Amortization of intangibles |
(11.7 | ) | (8.4 | ) | (43.7 | ) | (19.6 | ) | ||||||||
Other income (expense), net |
(7.3 | ) | 4.0 | (38.5 | ) | (161.4 | ) | |||||||||
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Operating income |
$ | 238.7 | $ | 281.3 | $ | 847.7 | $ | 727.8 | ||||||||
Income from equity method investments |
1.4 | 1.2 | 2.6 | 4.7 | ||||||||||||
Interest income |
1.4 | 0.9 | 4.5 | 2.7 | ||||||||||||
Interest expense |
(15.7 | ) | (15.5 | ) | (62.4 | ) | (65.1 | ) | ||||||||
Other non-operating items, net |
2.2 | (3.0 | ) | 11.4 | 5.6 | |||||||||||
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Income before income taxes |
$ | 228.0 | $ | 264.9 | $ | 803.8 | $ | 675.7 | ||||||||
Income taxes |
(83.8 | ) | (79.0 | ) | (242.2 | ) | (218.2 | ) | ||||||||
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Net income |
$ | 144.2 | $ | 185.9 | $ | 561.6 | $ | 457.5 | ||||||||
Less; Net income (loss) attributable to non-controlling interest |
(3.5 | ) | 0.4 | (5.5 | ) | 0.7 | ||||||||||
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Net income attributable to controlling interest |
$ | 147.7 | $ | 185.5 | $ | 567.1 | $ | 456.8 | ||||||||
Earnings per share2) |
$ | 1.67 | $ | 2.10 | $ | 6.42 | $ | 5.17 |
1) Including Corporate and other sales.
2) Assuming dilution and net of treasury shares.
14
Q4 Report 2016 |
Consolidated Balance Sheets
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||
(Dollars in millions, unaudited) |
2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
Assets |
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Cash & cash equivalents |
$ | 1,226.7 | $ | 1,182.6 | $ | 1,113.1 | $ | 1,161.6 | $ | 1,333.5 | ||||||||||
Receivables, net |
1,960.1 | 1,991.4 | 2,092.0 | 2,000.2 | 1,787.6 | |||||||||||||||
Inventories, net |
773.4 | 799.2 | 750.4 | 766.7 | 711.4 | |||||||||||||||
Other current assets |
180.7 | 172.1 | 167.0 | 131.6 | 205.8 | |||||||||||||||
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Total current assets |
$ | 4,140.9 | $ | 4,145.3 | $ | 4,122.5 | $ | 4,060.1 | $ | 4,038.3 | ||||||||||
Property, plant & equipment, net |
1,658.1 | 1,675.8 | 1,616.3 | 1,638.6 | 1,437.1 | |||||||||||||||
Investments and other non-current assets |
352.2 | 345.1 | 354.2 | 350.3 | 255.8 | |||||||||||||||
Goodwill assets |
1,870.7 | 1,891.5 | 1,894.2 | 1,838.7 | 1,666.3 | |||||||||||||||
Intangible assets, net |
212.5 | 243.5 | 257.1 | 256.6 | 128.0 | |||||||||||||||
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Total assets |
$ | 8,234.4 | $ | 8,301.2 | $ | 8,244.3 | $ | 8,144.3 | $ | 7,525.5 | ||||||||||
Liabilities and equity |
||||||||||||||||||||
Short-term debt |
$ | 219.8 | $ | 73.0 | $ | 95.4 | $ | 28.8 | $ | 39.6 | ||||||||||
Accounts payable |
1,196.5 | 1,191.5 | 1,281.9 | 1,240.3 | 1,169.6 | |||||||||||||||
Other current liabilities |
1,181.3 | 1,161.5 | 1,090.5 | 1,147.4 | 1,017.2 | |||||||||||||||
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Total current liabilities |
$ | 2,597.6 | $ | 2,426.0 | $ | 2,467.8 | $ | 2,416.5 | $ | 2,226.4 | ||||||||||
Long-term debt |
1,323.6 | 1,471.8 | 1,460.0 | 1,499.4 | 1,499.4 | |||||||||||||||
Pension liability |
237.5 | 216.2 | 216.4 | 215.2 | 197.0 | |||||||||||||||
Other non-current liabilities |
149.3 | 150.2 | 147.7 | 148.0 | 134.6 | |||||||||||||||
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Total non-current liabilities |
$ | 1,710.4 | $ | 1,838.2 | $ | 1,824.1 | $ | 1,862.6 | $ | 1,831.0 | ||||||||||
Total parent shareholders equity |
3,677.2 | 3,762.7 | 3,676.8 | 3,600.2 | 3,455.6 | |||||||||||||||
Non-controlling interest |
249.2 | 274.3 | 275.6 | 265.0 | 12.5 | |||||||||||||||
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Total equity |
$ | 3,926.4 | $ | 4,037.0 | $ | 3,952.4 | $ | 3,865.2 | $ | 3,468.1 | ||||||||||
Total liabilities and equity |
$ | 8,234.4 | $ | 8,301.2 | $ | 8,244.3 | $ | 8,144.3 | $ | 7,525.5 |
15
Q4 Report 2016 |
Consolidated Statements of Cash Flows
Quarter October - December | Full Year | Full Year | ||||||||||||||
(Dollars in millions, unaudited) |
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income |
$ | 144.2 | $ | 185.9 | $ | 561.6 | $ | 457.5 | ||||||||
Depreciation and amortization |
103.6 | 89.5 | 383.0 | 319.1 | ||||||||||||
Other, net |
(15.8 | ) | 12.9 | 1.6 | (0.0 | ) | ||||||||||
Changes in operating assets and liabilities |
62.2 | 33.0 | (77.8 | ) | (26.1 | ) | ||||||||||
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Net cash provided by operating activities |
$ | 294.2 | $ | 321.3 | $ | 868.4 | $ | 750.5 | ||||||||
Capital expenditures, net |
(159.1 | ) | (115.9 | ) | (498.6 | ) | (449.6 | ) | ||||||||
Acquisitions of businesses and other, net |
| (3.3 | ) | (227.4 | ) | (141.5 | ) | |||||||||
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Net cash used in investing activities |
$ | (159.1 | ) | $ | (119.2 | ) | $ | (726.0 | ) | $ | (591.1 | ) | ||||
Net cash before financing1) |
$ | 135.1 | $ | 202.1 | $ | 142.4 | $ | 159.4 | ||||||||
Net increase (decrease) in short-term debt |
2.0 | (10.4 | ) | (2.7 | ) | (29.0 | ) | |||||||||
Repayments and other changes in long-term debt |
| | | (12.2 | ) | |||||||||||
Dividends paid |
(51.1 | ) | (49.3 | ) | (202.8 | ) | (195.7 | ) | ||||||||
Shares repurchased |
| | | (104.4 | ) | |||||||||||
Common stock options exercised |
0.8 | 3.0 | 5.9 | 20.3 | ||||||||||||
Dividend paid to non-controlling interests |
| | (1.7 | ) | | |||||||||||
Capital contribution from non-controlling interests |
| | | 1.6 | ||||||||||||
Other, net |
0.3 | 0.2 | 1.1 | 0.5 | ||||||||||||
Effect of exchange rate changes on cash |
(43.0 | ) | 6.8 | (49.0 | ) | (36.0 | ) | |||||||||
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Increase (decrease) in cash and cash equivalents |
$ | 44.1 | $ | 152.4 | $ | (106.8 | ) | $ | (195.5 | ) | ||||||
Cash and cash equivalents at period-start |
1,182.6 | 1,181.1 | 1,333.5 | 1,529.0 | ||||||||||||
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Cash and cash equivalents at period-end |
$ | 1,226.7 | $ | 1,333.5 | $ | 1,226.7 | $ | 1,333.5 |
1) Non-U.S. GAAP measure comprised of Net cash provided by operating activities and Net cash used in investing activities.
16
Q4 Report 2016 |
RECONCILIATION OF NON-U.S. GAAP MEASURES TO U.S. GAAP
(Dollars in millions)
In this report we sometimes refer to non-U.S. GAAP measures that we and securities analysts use in measuring Autolivs performance. We believe that these measures assist investors and management in analyzing trends in the Companys business for the reasons given below. Investors should not consider these non-U.S. GAAP measures as substitutes, but rather as additions, to financial reporting measures prepared in accordance with U.S. GAAP. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.
Components in Sales Increase/Decrease
Since the Company generates approximately 73% of sales in currencies other than in the reporting currency (i.e. U.S. dollars) and currency rates have proven to be rather volatile, and due to the fact that the Company has historically made several acquisitions and divestitures, we analyze the Companys sales trends and performance as changes in organic sales growth. This presents the increase or decrease in the overall U.S. dollar net sales on a comparable basis, allowing separate discussions of the impact of acquisitions/divestitures and exchange rates. The tables below present changes in organic sales growth as reconciled to the change in the total U.S. GAAP net sales.
Sales by Product
Quarter October - December 2016 |
Airbag Products2) |
Seatbelt Products2) |
Passive Safety Electronics |
Active Safety | Brake Control | Total | ||||||||||||||||||||||||||||||||||||||||||
% | $ | % | $ | % | $ | % | $ | % | $ | % | $ | |||||||||||||||||||||||||||||||||||||
Organic change |
(0.9 | ) | $ | (12.4 | ) | 3.5 | $ | 23.6 | 8.0 | $ | 20.9 | (2.1 | ) | $ | (3.9 | ) | | $ | | 1.1 | $ | 28.2 | ||||||||||||||||||||||||||
Currency effects1) |
(1.9 | ) | (26.4 | ) | (3.0 | ) | (20.5 | ) | (0.9 | ) | (2.6 | ) | (2.9 | ) | (5.5 | ) | | | (2.2 | ) | (55.0 | ) | ||||||||||||||||||||||||||
Acquisitions/divestitures |
| | | | | | | | 100.0 | 111.1 | 4.4 | 111.1 | ||||||||||||||||||||||||||||||||||||
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Reported change |
(2.8 | ) | $ | (38.8 | ) | 0.5 | $ | 3.1 | 7.1 | $ | 18.3 | (5.0 | ) | $ | (9.4 | ) | 100.0 | $ | 111.1 | 3.3 | $ | 84.3 |
1) Effects from currency translations.
2) Including Corporate and other sales.
Full Year 2016 | Airbag Products2) |
Seatbelt Products2) |
Passive Safety Electronics |
Active Safety | Brake Control | Total | ||||||||||||||||||||||||||||||||||||||||||
% | $ | % | $ | % | $ | % | $ | % | $ | % | $ | |||||||||||||||||||||||||||||||||||||
Organic change |
6.1 | $ | 308.3 | 5.4 | $ | 139.1 | 12.3 | $ | 113.2 | 16.1 | $ | 98.1 | | $ | | 7.2 | $ | 658.7 | ||||||||||||||||||||||||||||||
Currency effects1) |
(1.7 | ) | (88.7 | ) | (2.9 | ) | (73.0 | ) | (0.6 | ) | (5.4 | ) | (0.9 | ) | (5.6 | ) | | | (1.9 | ) | (172.7 | ) | ||||||||||||||||||||||||||
Acquisitions/divestitures |
| | | | | | 5.7 | 35.0 | 100.0 | 383.0 | 4.6 | 418.0 | ||||||||||||||||||||||||||||||||||||
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Reported change |
4.4 | $ | 219.6 | 2.5 | $ | 66.1 | 11.7 | $ | 107.8 | 20.9 | $ | 127.5 | 100.0 | $ | 383.0 | 9.9 | $ | 904.0 |
1) Effects from currency translations.
2) Including Corporate and other sales.
Sales by Region
Quarter October - December 2016 |
China | Japan | RoA | Americas | Europe | Total | ||||||||||||||||||||||||||||||||||||||||||
% | $ | % | $ | % | $ | % | $ | % | $ | % | $ | |||||||||||||||||||||||||||||||||||||
Organic change |
12.2 | $ | 57.7 | 1.8 | $ | 3.5 | 10.6 | $ | 23.6 | (6.7 | ) | $ | (59.1 | ) | 0.3 | $ | 2.5 | 1.1 | $ | 28.2 | ||||||||||||||||||||||||||||
Currency effects1) |
(6.4 | ) | (30.4 | ) | 10.8 | 20.5 | (0.2 | ) | (0.4 | ) | (2.9 | ) | (25.4 | ) | (2.5 | ) | (19.3 | ) | (2.2 | ) | (55.0 | ) | ||||||||||||||||||||||||||
Acquisitions/divestitures |
8.3 | 39.1 | 21.7 | 41.1 | | | 3.5 | 30.9 | | | 4.4 | 111.1 | ||||||||||||||||||||||||||||||||||||
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Reported change |
14.1 | $ | 66.4 | 34.3 | $ | 65.1 | 10.4 | $ | 23.2 | (6.1 | ) | $ | (53.6 | ) | (2.2 | ) | $ | (16.8 | ) | 3.3 | $ | 84.3 |
1) Effects from currency translations.
Full Year 2016 | China | Japan | RoA | Americas | Europe | Total | ||||||||||||||||||||||||||||||||||||||||||
% | $ | % | $ | % | $ | % | $ | % | $ | % | $ | |||||||||||||||||||||||||||||||||||||
Organic change |
13.9 | $ | 212.5 | 7.4 | $ | 49.6 | 4.6 | $ | 40.3 | 2.4 | $ | 78.6 | 9.8 | $ | 277.7 | 7.2 | $ | 658.7 | ||||||||||||||||||||||||||||||
Currency effects1) |
(5.4 | ) | (83.6 | ) | 11.7 | 77.7 | (2.8 | ) | (24.4 | ) | (3.5 | ) | (113.1 | ) | (1.0 | ) | (29.3 | ) | (1.9 | ) | (172.7 | ) | ||||||||||||||||||||||||||
Acquisitions/divestitures |
7.4 | 113.5 | 23.1 | 154.4 | | | 4.6 | 150.1 | | | 4.6 | 418.0 | ||||||||||||||||||||||||||||||||||||
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Reported change |
15.9 | $ | 242.4 | 42.2 | $ | 281.7 | 1.8 | $ | 15.9 | 3.5 | $ | 115.6 | 8.8 | $ | 248.4 | 9.9 | $ | 904.0 |
1) Effects from currency translations.
17
Q4 Report 2016 |
Sales by Segment
Quarter October - December 2016 |
Passive Safety | Electronics | Other and eliminations |
Total | ||||||||||||||||||||||||
% | $ | % | $ | $ | % | $ | ||||||||||||||||||||||
Organic change |
0.7 | $ | 13.6 | 3.4 | $ | 15.6 | $ | (1.0 | ) | 1.1 | $ | 28.2 | ||||||||||||||||
Currency effects1) |
(2.3 | ) | (46.7 | ) | (1.8 | ) | (8.3 | ) | (0.0 | ) | (2.2 | ) | (55.0 | ) | ||||||||||||||
Acquisitions/divestitures |
| | 24.5 | 113.5 | (2.4 | ) | 4.4 | 111.1 | ||||||||||||||||||||
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Reported change |
(1.6 | ) | $ | (33.1 | ) | 26.1 | $ | 120.8 | $ | (3.4 | ) | 3.3 | $ | 84.3 | ||||||||||||||
1) Effects from currency translations. |
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Full Year 2016 | Passive Safety | Electronics | Other and eliminations |
Total | ||||||||||||||||||||||||
% | $ | % | $ | $ | % | $ | ||||||||||||||||||||||
Organic change |
6.0 | $ | 458.9 | 13.3 | $ | 212.1 | $ | (12.3 | ) | 7.2 | $ | 658.7 | ||||||||||||||||
Currency effects1) |
(2.1 | ) | (161.3 | ) | (0.6 | ) | (11.3 | ) | (0.1 | ) | (1.9 | ) | (172.7 | ) | ||||||||||||||
Acquisitions/divestitures |
| | 26.8 | 426.1 | (8.1 | ) | 4.6 | 418.0 | ||||||||||||||||||||
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Reported change |
3.9 | $ | 297.6 | 39.5 | $ | 626.9 | $ | (20.5 | ) | 9.9 | $ | 904.0 |
1) Effects from currency translations.
18
Q4 Report 2016 |
Operating Working Capital
Due to the need to optimize cash generation to create value for shareholders, management focuses on operationally derived working capital as defined in the table below. The reconciling items used to derive this measure are, by contrast, managed as part of our overall management of cash and debt, but they are not part of the responsibilities of day-to-day operations management.
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
Total current assets |
$ | 4,140.9 | $ | 4,145.3 | $ | 4,122.5 | $ | 4,060.1 | $ | 4,038.3 | ||||||||||
Total current liabilities |
(2,597.6 | ) | (2,426.0 | ) | (2,467.8 | ) | (2,416.5 | ) | (2,226.4 | ) | ||||||||||
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Working capital |
$ | 1,543.3 | $ | 1,719.3 | $ | 1,654.7 | $ | 1,643.6 | $ | 1,811.9 | ||||||||||
Cash and cash equivalents |
(1,226.7 | ) | (1,182.6 | ) | (1,113.1 | ) | (1,161.6 | ) | (1,333.5 | ) | ||||||||||
Short-term debt |
219.8 | 73.0 | 95.4 | 28.8 | 39.6 | |||||||||||||||
Derivative asset and liability, current |
(8.4 | ) | (3.7 | ) | (3.0 | ) | 0.6 | 2.4 | ||||||||||||
Dividends payable |
51.2 | 51.2 | 51.2 | 51.1 | 49.3 | |||||||||||||||
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Operating working capital |
$ | 579.2 | $ | 657.2 | $ | 685.2 | $ | 562.5 | $ | 569.7 |
Net Debt
As part of efficiently managing the Companys overall cost of funds, we routinely enter into debt-related derivatives (DRD) as a part of our debt management. Creditors and credit rating agencies use net debt adjusted for DRD in their analyses of the Companys debt and therefore we provide this non-U.S. GAAP measure. DRD are fair value adjustments to the carrying value of the underlying debt. Also included in the DRD is the unamortized fair value adjustment related to a discontinued fair value hedge which will be amortized over the remaining life of the debt. By adjusting for DRD, the total financial liability of net debt is disclosed without grossing debt up with currency or interest fair values.
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
Short-term debt |
$ | 219.8 | $ | 73.0 | $ | 95.4 | $ | 28.8 | $ | 39.6 | ||||||||||
Long-term debt |
1,323.6 | 1,471.8 | 1,460.0 | 1,499.4 | 1,499.4 | |||||||||||||||
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Total debt |
$ | 1,543.4 | $ | 1,544.8 | $ | 1,555.4 | $ | 1,528.2 | $ | 1,539.0 | ||||||||||
Cash and cash equivalents |
(1,226.7 | ) | (1,182.6 | ) | (1,113.1 | ) | (1,161.6 | ) | (1,333.5 | ) | ||||||||||
Debt-related derivatives |
(3.4 | ) | (2.6 | ) | (4.5 | ) | (4.7 | ) | (3.9 | ) | ||||||||||
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Net debt |
$ | 313.3 | $ | 359.6 | $ | 437.8 | $ | 361.9 | $ | 201.6 |
Leverage ratio
The non-U.S. GAAP measure net debt is also used in the non-U.S. GAAP measure Leverage ratio. Management uses this measure to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. For details on leverage ratio refer to the table.
December 31 | December 31 | |||||||
2016 | 2015 | |||||||
Net debt1) |
$ | 313.3 | $ | 201.6 | ||||
Pension liabilities |
237.5 | 197.0 | ||||||
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Debt per the Policy |
$ | 550.8 | $ | 398.6 | ||||
Income before income taxes2) |
$ | 803.8 | $ | 675.7 | ||||
Plus: Interest expense, net2, 3) |
57.9 | 62.4 | ||||||
Depreciation and amortization of intangibles2, 4) |
383.0 | 319.1 | ||||||
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EBITDA per the Policy |
$ | 1,244.7 | $ | 1,057.2 | ||||
Leverage ratio |
0.4 | 0.4 |
1) Net debt is short- and long-term debt less cash and cash equivalents and debt-related derivatives.
2) Latest 12 months.
3) Interest expense, net is interest expense including cost for extinguishment of debt, if any, less interest income.
4) Including impairment write-offs, if any.
19
Q4 Report 2016 |
Items Affecting Comparability
(Dollars in millions, except per share data)
We believe that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autolivs business, it is useful to consider certain U.S. GAAP measures exclusive of these items. Accordingly, the tables below reconcile from non-U.S. GAAP to the equivalent U.S. GAAP measure.
Quarter October - December 2016 | Quarter October - December 2015 | |||||||||||||||||||||||
Non-U.S. GAAP |
Adjustments1) | Reported U.S. GAAP |
Non-U.S. GAAP |
Adjustments1) | Reported U.S. GAAP |
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Operating income |
$ | 242.9 | $ | (4.2 | ) | $ | 238.7 | $ | 279.1 | $ | 2.2 | $ | 281.3 | |||||||||||
Operating margin, % |
9.3 | (0.1 | ) | 9.2 | 11.1 | 0.1 | 11.2 | |||||||||||||||||
Income before taxes |
$ | 232.2 | $ | (4.2 | ) | $ | 228.0 | $ | 262.7 | $ | 2.2 | $ | 264.9 | |||||||||||
Net income |
$ | 148.0 | $ | (3.8 | ) | $ | 144.2 | $ | 184.3 | $ | 1.6 | $ | 185.9 | |||||||||||
Return on capital employed, % |
22.5 | (0.3 | ) | 22.2 | 29.4 | 1.3 | 30.7 | |||||||||||||||||
Return on total equity, % |
14.8 | (0.3 | ) | 14.5 | 20.9 | 1.0 | 21.9 | |||||||||||||||||
Earnings per share, diluted2) |
$ | 1.71 | $ | (0.04 | ) | $ | 1.67 | $ | 2.08 | $ | 0.02 | $ | 2.10 |
1) Excluding costs for capacity alignment and antitrust related matters.
2) Assuming dilution and net of treasury shares.
Full Year 2016 | Full Year 2015 | |||||||||||||||||||||||
Non-U.S. GAAP |
Adjustments1) | Reported U.S. GAAP |
Non-U.S. GAAP |
Adjustments1) | Reported U.S. GAAP |
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Operating income |
$ | 884.9 | $ | (37.2 | ) | $ | 847.7 | $ | 893.3 | $ | (165.5 | ) | $ | 727.8 | ||||||||||
Operating margin, % |
8.8 | (0.4 | ) | 8.4 | 9.7 | (1.8 | ) | 7.9 | ||||||||||||||||
Income before taxes |
$ | 841.0 | $ | (37.2 | ) | $ | 803.8 | $ | 841.2 | $ | (165.5 | ) | $ | 675.7 | ||||||||||
Net income |
$ | 590.9 | $ | (29.3 | ) | $ | 561.6 | $ | 588.4 | $ | (130.9 | ) | $ | 457.5 | ||||||||||
Capital employed |
$ | 4,269 | $ | (29 | ) | $ | 4,240 | $ | 3,801 | $ | (131 | ) | $ | 3,670 | ||||||||||
Return on capital employed, % |
21.1 | (0.8 | ) | 20.3 | 24.4 | (4.0 | ) | 20.4 | ||||||||||||||||
Return on total equity, % |
15.3 | (0.7 | ) | 14.6 | 17.1 | (3.5 | ) | 13.6 | ||||||||||||||||
Earnings per share, diluted2) |
$ | 6.75 | $ | (0.33 | ) | $ | 6.42 | $ | 6.65 | $ | (1.48 | ) | $ | 5.17 | ||||||||||
Total parent shareholders equity per share |
$ | 42.02 | $ | (0.33 | ) | $ | 41.69 | $ | 40.70 | $ | (1.48 | ) | $ | 39.22 |
1) Excluding costs for capacity alignment and antitrust related matters (but including settlements in H1, 2015).
2) Assuming dilution and net of treasury shares.
20
Q4 Report 2016 |
Segment Disclosure
Sales, including Intersegment Sales | Quarter October - December | Full Year | Full Year | |||||||||||||
(Dollars in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Passive Safety |
$ | 2,035.3 | $ | 2,068.3 | $ | 7,918.8 | $ | 7,621.2 | ||||||||
Electronics |
584.1 | 463.2 | 2,215.6 | 1,588.7 | ||||||||||||
Total segment sales |
$ | 2,619.4 | $ | 2,531.5 | $ | 10,134.4 | $ | 9,209.9 | ||||||||
Corporate and other |
2.7 | 3.6 | 5.8 | 14.7 | ||||||||||||
Intersegment sales |
(18.3 | ) | (15.6 | ) | (66.6 | ) | (55.0 | ) | ||||||||
Total net sales |
$ | 2,603.8 | $ | 2,519.5 | $ | 10,073.6 | $ | 9,169.6 | ||||||||
Income before Income Taxes | Quarter October - December | Full Year | Full Year | |||||||||||||
(Dollars in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Passive Safety |
$ | 228.5 | $ | 264.5 | $ | 817.7 | $ | 669.2 | ||||||||
Electronics |
29.8 | 32.3 | 61.5 | 64.5 | ||||||||||||
Segment operating income |
$ | 258.3 | $ | 296.8 | $ | 879.2 | $ | 733.7 | ||||||||
Corporate and other |
(19.6 | ) | (15.5 | ) | (31.5 | ) | (5.9 | ) | ||||||||
Interest and other non-operating expenses, net |
(12.1 | ) | (17.6 | ) | (46.5 | ) | (56.8 | ) | ||||||||
Income from equity method investments |
1.4 | 1.2 | 2.6 | 4.7 | ||||||||||||
Income before income taxes |
$ | 228.0 | $ | 264.9 | $ | 803.8 | $ | 675.7 | ||||||||
Capital Expenditures | Quarter October - December | Full Year | Full Year | |||||||||||||
(Dollars in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Passive Safety |
$ | 125.2 | $ | 99.1 | $ | 394.7 | $ | 405.6 | ||||||||
Electronics |
34.1 | 16.1 | 100.9 | 53.2 | ||||||||||||
Corporate and other |
3.9 | 3.0 | 11.2 | 7.0 | ||||||||||||
Total capital expenditures |
$ | 163.2 | $ | 118.2 | $ | 506.8 | $ | 465.8 | ||||||||
Depreciation and Amortization | Quarter October - December | Full Year | Full Year | |||||||||||||
(Dollars in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Passive Safety |
$ | 71.7 | $ | 71.9 | $ | 278.5 | $ | 264.5 | ||||||||
Electronics |
30.1 | 15.7 | 96.1 | 49.3 | ||||||||||||
Corporate and other |
1.8 | 1.9 | 8.4 | 5.3 | ||||||||||||
Total depreciation and amortization |
$ | 103.6 | $ | 89.5 | $ | 383.0 | $ | 319.1 | ||||||||
Segment Assets (Dollars in millions) |
December 31 2016 |
December 31 2015 |
||||||||||||||
Passive Safety |
$ | 5,637.0 | $ | 5,539.3 | ||||||||||||
Electronics |
1,715.5 | 966.5 | ||||||||||||||
Segment assets |
$ | 7,352.5 | $ | 6,505.8 | ||||||||||||
Corporate and other1) |
881.9 | 1,019.7 | ||||||||||||||
Total assets |
$ | 8,234.4 | $ | 7,525.5 |
1) Corporate and other assets mainly consists of cash and cash equivalents, income tax and deferred tax assets and equity method investments.
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Q4 Report 2016 |
Multi-year Summary
(Dollars in millions, except per share data) |
20161) | 20151) | 20141) | 20131, 5) | 20121) | |||||||||||||||
Sales and Income |
||||||||||||||||||||
Net sales |
$ | 10,074 | $ | 9,170 | $ | 9,240 | $ | 8,803 | $ | 8,267 | ||||||||||
Operating income |
848 | 728 | 723 | 761 | 705 | |||||||||||||||
Income before income taxes |
804 | 676 | 667 | 734 | 669 | |||||||||||||||
Net income attributable to controlling interest |
567 | 457 | 468 | 486 | 483 | |||||||||||||||
Financial Position |
||||||||||||||||||||
Current assets excluding cash |
2,914 | 2,705 | 2,607 | 2,582 | 2,312 | |||||||||||||||
Property, plant and equipment, net |
1,658 | 1,437 | 1,390 | 1,336 | 1,233 | |||||||||||||||
Intangible assets (primarily goodwill) |
2,083 | 1,794 | 1,661 | 1,687 | 1,707 | |||||||||||||||
Non-interest bearing liabilities |
2,765 | 2,518 | 2,400 | 2,364 | 2,162 | |||||||||||||||
Capital employed |
4,240 | 3,670 | 3,504 | 3,489 | 3,415 | |||||||||||||||
Net debt (cash) |
313 | 202 | 62 | (511 | ) | (361 | ) | |||||||||||||
Total equity |
3,926 | 3,468 | 3,442 | 4,000 | 3,776 | |||||||||||||||
Total assets |
8,234 | 7,526 | 7,443 | 6,983 | 6,570 | |||||||||||||||
Long-term debt |
1,324 | 1,499 | 1,521 | 279 | 563 | |||||||||||||||
Share data |
||||||||||||||||||||
Earnings per share (US$) basic |
6.43 | 5.18 | 5.08 | 5.09 | 5.17 | |||||||||||||||
Earnings per share (US$) assuming dilution |
6.42 | 5.17 | 5.06 | 5.07 | 5.08 | |||||||||||||||
Total parent shareholders equity per share (US$) |
41.69 | 39.22 | 38.64 | 42.17 | 39.36 | |||||||||||||||
Cash dividends paid per share (US$) |
2.30 | 2.22 | 2.12 | 2.00 | 1.89 | |||||||||||||||
Cash dividends declared per share (US$) |
2.32 | 2.24 | 2.14 | 2.02 | 1.94 | |||||||||||||||
Share repurchases |
| 104 | 616 | 148 | | |||||||||||||||
Number of shares outstanding (million)2) |
88.2 | 88.1 | 88.7 | 94.4 | 95.5 | |||||||||||||||
Ratios |
||||||||||||||||||||
Gross margin (%) |
20.4 | 20.1 | 19.5 | 19.4 | 19.9 | |||||||||||||||
Operating margin (%) |
8.4 | 7.9 | 7.8 | 8.6 | 8.5 | |||||||||||||||
Pretax margin (%) |
8.0 | 7.4 | 7.2 | 8.3 | 8.1 | |||||||||||||||
Return on capital employed (%) |
20 | 20 | 21 | 22 | 21 | |||||||||||||||
Return on total equity (%) |
15 | 14 | 12 | 13 | 14 | |||||||||||||||
Total equity ratio (%) |
48 | 46 | 46 | 57 | 57 | |||||||||||||||
Net debt to capitalization (%) |
7 | 6 | 2 | n/a | n/a | |||||||||||||||
Days receivables outstanding |
74 | 73 | 71 | 70 | 66 | |||||||||||||||
Days inventory outstanding |
33 | 33 | 32 | 31 | 30 | |||||||||||||||
Other data |
||||||||||||||||||||
Airbag sales3) |
5,256 | 5,036 | 5,019 | 4,822 | 5,392 | |||||||||||||||
Seatbelt sales4) |
2,665 | 2,599 | 2,800 | 2,773 | 2,657 | |||||||||||||||
Passive safety electronic sales6) |
1,031 | 923 | 932 | 863 | n/a | |||||||||||||||
Active safety sales |
739 | 611 | 489 | 345 | 218 | |||||||||||||||
Brake control sales |
383 | | | | | |||||||||||||||
Net cash provided by operating activities |
868 | 751 | 713 | 838 | 689 | |||||||||||||||
Capital expenditures, net |
499 | 450 | 453 | 379 | 360 | |||||||||||||||
Net cash used in investing activities |
(726 | ) | (591 | ) | (453 | ) | (377 | ) | (358 | ) | ||||||||||
Net cash provided by (used in) financing activities |
(200 | ) | (319 | ) | 226 | (318 | ) | (91 | ) | |||||||||||
Number of employees, December 31 |
61,500 | 54,600 | 50,800 | 46,900 | 41,700 |
1) Costs in 2016, 2015, 2014, 2013 and 2012 for capacity alignments and antitrust matters reduced operating income by (millions) $37, $166, $120, $47 and $98 and net income by (millions) $29, $131, $80, $33 and $71, respectively. This corresponds to 0.4%, 1.8%, 1.3%, 0.6% and 1.2% on operating margins and 0.3%, 1.4%, 0.9%, 0.4% and 0.9% on net margins, respectively. The impact on EPS was $0.33, $1.48, $0.87, $0.34 and $0.74 while return on total equity was reduced by 0.7%, 1.7%, 1.9%, 0.8% and 1.8%, respectively for the same five year period.
2) At year end, excluding dilution and net of treasury shares.
3) Including passive safety electronics (2012), steering wheels, inflators and initiators.
4) Including seat components until the divestiture in June 2012.
5) Including adjustments for a non-cash, non-recurring valuation allowance for deferred tax assets of $39 million on net income and capital employed, and $0.41 on EPS and total parent shareholder equity per share.
6) In 2012, sales for passive safety electronics were in airbag sales.
22