Summary 2003

As an American company, Autoliv follows Generally Accepted Accounting Principles in the United States (U.S. GAAP). This annual report also contains some non-GAAP measures. Some of them are required by Autoliv creditors. Management believes that these non-GAAP measures may assist investors in analyzing trends in the Company's business. Investors should consider these non-GAAP measures in addition to rather than as a substitute for financial reporting measures prepared in accordance with U.S. GAAP.

U.S.$ 2003 2002 Change
Sales (in millions) 5,301 4,443 +19%
Operating income (in millions) 427 323 +32%
Net income (in millions) 268 176 +53%
Earnings per share 2.81 1.79 +57%
Cash from operations (in millions) 530 509 +4%
Return on shareholder's equity (%) 12.2 8.9 +37%
Dividends paid (in millions) 51 43 +20%

 

Net Sales

In 2003, Autoliv's sales continued to outgrow the light vehicle production in Europe and North America. Consolidated sales rose by 19% to $5,301 million and organic sales by 5%, compared to a 2% decline in the vehicle production. Over the last five years, Autoliv's reported sales (i.e. including acquisitions) have grown by almost 40%, compared to a 4% decline in the North American and European light vehicle production.

Earnings Per Share

The turnaround in 2002 continued during 2003 when earnings per share improved by 57%, hitting a record high of $2.81, including a one-time license income and currency effects that boosted earnings per share by 26%. In 2001, earnings were hit by a drop in vehicle production, peaking raw material prices and negative currency effects. Pro forma numbers show earnings using the same accounting principles for all years (see Note 1 to the Consolidated Financial Statements included herein.)

Cash Flow

In 2003, operations continued to generate over one-half billion dollars in cash before capital expenditures, and over one-quarter billion after these investments. Although cash flow dropped in 2000 and 2001, the internal cash generation has always been enough to cover capital expenditures.