Financial Report January - March 2009

Financial Report January - March 2009

Sales and EBIT in line with Guidance

Cash Flow better than Expected


(Stockholm, April 21, 2009) - - - For the three-month period ended March 31,
2009, Autoliv Inc. (NYSE: ALV and SSE: ALIV) - the worldwide leader in
automotive safety systems - reported a decline in consolidated net sales of 49%
to $927 million including an organic sales decline of 40% compared to the same
quarter 2008 due to a 45% drop in North American and West European light vehicle
production. The Company reported an operating loss of $73 million and a negative
operating margin of 7.8% before severance and other restructuring costs
(non-U.S. GAAP measure, see enclosed table). 

The Company therefore managed to offset this larger-than-expected drop in light
vehicle production and reached its guidance from February. This was thanks to
more aggressive cost reduction measures, including an additional headcount
reduction of nearly 4,000 during the quarter and nearly 10,000 or 23% since last
summer. 

The negative cash flow from operations was limited to $9 million, and to $45
million after investing activities. This better-than-expected outcome reflects
significant inventory and capital expenditure reductions. At the end of the
quarter, Autoliv improved its financial position by raising $377 million, net in
equity and equity units.

Including severance and restructuring cost of $16 million, the Company reported
an operating loss of $89 million, a loss before taxes of $104 million, a net
loss of $64 million and loss per share of $0.90. 

For the second quarter of 2009, the Company expects a decline in consolidated
net sales in the range of 40-45% with organic sales declining by more than 30%
and a negative operating margin of less than 3% excluding restructuring costs
and major customer defaults.  

An earnings conference call will be held at 3:00 p.m. (CET) today April 21. To
listen in, call (in Europe) +44-203-003-2665 and (in the U.S.) +1-866-966-5335
or access www.autoliv.com under “News/Calendar”.