STOCKHOLM, Jan. 26, 2018 /PRNewswire/ --
Autoliv, Inc. (NYSE: ALV and SSE: ALIVsdb), today announces a
one-time, non-cash, goodwill impairment charge and specifies
expected one-time costs related to the planned spin-off and public
listing of its Electronics business.
One-time goodwill impairment charge
- A non-cash impairment of goodwill in the Autoliv Nissin Brake
Systems joint venture (of which Autoliv owns 51%), with a net
income effect to Autoliv of approximately $100 million in the fourth quarter of 2017.
- The total impairment, affecting reported operating income is
$234 million. There is no effect on
adjusted (guided) operating income or adjusted earnings per
share.
- It is a non-cash item, which will not affect cash flow,
financial targets or the business plan of the Electronics
business.
- It is the outcome of a weaker sales development than
anticipated at the start of operations (April 2016) of the ANBS brake control joint
venture.
Update of expected costs relating to spin-off of Electronics
business
- Project costs for the separation and spin-off are expected to
be up to $70 million.
- Mainly related to accounting, finance, legal, IT and
listing.
- Project costs will be booked in the quarter in which they
occur, the majority are not expected to be tax
deductible.
- Tax related costs from the separation of the legal entities in
preparation for the spin-off are estimated to be up to $80 million.
- Tax related costs will be recorded at the time of the
separation of the legal entities, expected in the first half of
2018.
The spin-off of Electronics is progressing according to schedule
and is expected to be completed during the third quarter of 2018,
subject to market, regulatory and certain other conditions,
including approval by Autoliv's board of directors. The spin-off is
as previously communicated expected to be tax free to Autoliv
shareholders.
Autoliv will be able to address questions related to the
spin-off of the Electronics business during the fourth quarter 2017
earnings teleconference call scheduled for January 30, 2018 at 14.00 CET.
Background to financial reporting of Autoliv Nissin Brake
Systems
Autoliv consolidates ANBS financials in full in its consolidated
statement of net income and consolidated balance sheets. Autoliv
owns 51% of ANBS, and the 49% minority interest is reported in the
"Net income (loss) attributable to non-controlling interest" line
in the income statement and in the "Non-controlling interest" line
in the balance sheet. The recording of the non-cash impairment of
goodwill was made as a part of the preparation and audit of
Autoliv's financial statements for 2017.
Media Inquiries:
Thomas Jönsson, Group Vice President
Communications.
Tel +46 (0)8 58 72 06 27
This information is information that Autoliv, Inc. is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the contact
person set out above, at 08.30 CET on January 26, 2018.
About Autoliv
Autoliv, Inc. is the worldwide leader in automotive safety
systems, and through its subsidiaries develops and manufactures
automotive safety systems for all major automotive manufacturers in
the world. Together with its joint ventures, Autoliv has more than
80 facilities with 70,000 employees in 27 countries. In addition,
the Company has 22 technical centers in ten countries around the
world, with 19 test tracks, more than any other automotive safety
supplier. Sales in 2016 amounted to about US $10.1 billion. The Company's shares are listed on
the New York Stock Exchange (NYSE: ALV) and its Swedish Depository
Receipts on Nasdaq Stockholm (ALIV sdb). For more information about
Autoliv, please visit our company website at
www.autoliv.com.
Safe Harbor Statement
This report contains statements that are not historical facts
but rather forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include statements related to the
completion and timing of the proposed spin-off, the estimated
project costs and tax costs associated with the separation and
spin-off, the future performance of the Passive Safety and
Electronics businesses on a stand-alone basis if the spin-off is
completed, the outlook for Passive Safety and Electronics as
separate businesses if the spin-off is completed, the expected
strategic, operational and competitive benefits of the proposed
spin-off and the effect of the separation on Autoliv and its
stakeholders and those that address activities, events or
developments that Autoliv, Inc. or its management believes or
anticipates may occur in the future. All forward-looking statements
are based upon our current expectations, various assumptions and
data available from third parties. Our expectations and assumptions
are expressed in good faith and we believe there is a reasonable
basis for them. However, there can be no assurance that such
forward-looking statements will materialize or prove to be correct
as forward-looking statements are inherently subject to known and
unknown risks, uncertainties and other factors which may cause
actual future results, performance or achievements to differ
materially from the future results, performance or achievements
expressed in or implied by such forward-looking statements.
Numerous risks, uncertainties and other factors may cause actual
results to differ materially from those set out in the
forward-looking statements. For any forward-looking statements
contained in this or any other document, we claim the protection of
the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995, and we assume no
obligation to update publicly or revise any such statements in
light of new information or future events, except as required by
law.
This information was brought to you by Cision
http://news.cision.com
http://news.cision.com/autoliv/r/autoliv-records-non-cash-charge-and-specifies-spin-off-costs,c2438664
The following files are available for download:
http://mb.cision.com/Main/751/2438664/782495.pdf
|
PDF
|
View original
content:http://www.prnewswire.com/news-releases/autoliv-records-non-cash-charge-and-specifies-spin-off-costs-300588734.html
SOURCE Autoliv