Autoliv: Financial Report January - March 2001

-- Sales stable despite global car production down 7%

-- Income before taxes $40 million

-- Net income $21 million

-- Earnings per share $.21



Apr 19, 2001, 01:00 ET from Autoliv Inc.

    STOCKHOLM, Sweden, April 19 /PRNewswire/ -- Autoliv Inc. (NYSE:   ALV)
 (SSE: ALIV), the world wide leader in automotive safety systems, reported
 better-than-expected sales and earnings for the quarter ended March 31, 2001,
 despite the fact that the negative trends from the fourth quarter last year
 (i.e. falling car production and higher material costs) have continued.
     Sales improved by 8% compared to the most recent quarter and stood
 unchanged at $1.1 billion compared to the first quarter previous year.  Income
 before taxes improved by 12%, net income by 7% and earnings per share by 5%
 from the most recent quarter.  Compared to the year-ago quarter, income before
 taxes declined by 58% to $40 million, net income by 62% to $21 million and the
 earnings per share by 61% to $.21.
 
     Sales
     Consolidated net sales during the three-month period ended March 31, 2001,
 amounted to $1,081 million.  This was the same level as recorded in the first
 quarter last year, which was the best sales quarter ever.  Compared to the
 preceding quarter sales rose by 8%.
     Sales of newly acquired companies (net of divestitures) added 8% to
 consolidated sales in the first quarter primarily as a result of the
 acquisitions of OEA and NSK's North American seat belt operations in the
 second quarter last year.  Currency translation effects reduced consolidated
 reported sales by 5%.  Consequently, Autoliv's organic sales (i.e.
 consolidated sales adjusted for currency effects and
 acquisitions/divestitures) declined by 3%.
     This compares favorably with global light vehicle production, which is
 estimated to have fallen by 7%.  Autoliv's sales were particularly strong in
 Europe, where sales rose by 7% in local currencies although European car
 production did not increase.  In U.S. dollars, Autoliv's European sales
 declined, however, by 1% due to the weak Euro.  In North America, Autoliv's
 organic sales declined by 12% while light vehicle production fell by 16%.  For
 Autoliv's most important customers in North America (Chrysler, Ford and
 General Motors) the reduction was over 20%.  Including acquisitions, Autoliv's
 North American sales increased slightly.
     Autoliv's relatively strong sales performance was mainly driven by the
 stronger-than-expected car production in Europe and the introduction of
 side-impact airbags such as the Inflatable Curtain, as well as by market share
 gains in the U.S. seat belt market and the global steering wheel market.
     Sales of airbag products (incl. steering wheels) declined by 3% to
 $757 million from $779 million.  Currency effects reduced reported sales by
 4%.  Acquisitions increased sales by 8%.  Consequently, organic sales declined
 by 7% as a result of the weak U.S. car production and negative customer mix.
 The negative factors have been partly offset by Autoliv's strong performance
 in side airbag and steering wheel products, where consolidated sales rose by
 30% and 15%, respectively.  Even in the depressed U.S. market, sales of these
 products rose.
     Sales of seat belt products (incl. seat sub-systems) grew by 6% to
 $324 million from $305 million.  Currency effects reduced reported sales by
 7%, while acquisitions in creased sales by 7%.  Consequently, organic sales
 growth was 6%.  This growth in sales was mainly driven by market share gains
 in the U.S. and break throughs in the U.S. for Autoliv's seat belt
 pretensioners.  Including the acquisition of NSK's North American seat belt
 business, Autoliv's seat belt sales in North America doubled.
 
     Earnings
     Gross profit during the quarter decreased by $43 million to $186 million
 and the gross margin fell to 17.2% from 21.0%.  Compared to the fourth quarter
 2000, however, the gross margin improved from 15.5% and the gross profit
 improved by $30 million or by 19%.  The deterioration from the previous year
 was primarily due to the fall in U.S. vehicle production, higher material
 prices and material content, as well as to an unfavorable product mix.  The
 acquisitions of OEA and NSK's seat belt operations in North America have also
 reduced Autoliv's gross margin.
     The improvement from the fourth quarter was driven by sales performance
 that has been better than expected.  The implementation of the action program
 that Autoliv announced at the beginning of this year has been faster than
 originally anticipated.  Most of the benefits will materialize gradually later
 in the year.  A reduction in the number of supply chain issues has also
 contributed to the gross profit and margin improvements.
     Operating income declined by $45 million to $60 million and the operating
 margin fell to 5.5% from 9.6%.  Compared to the fourth quarter 2000, however,
 the margin rose from 4.9% and operating income improved by $11 million or by
 22%.  The decrease from previous year is principally due to the
 above-mentioned $43 million decline in gross profit.  The R&D expenditures
 were unchanged in relation to sales from the first quarter 2000 despite last
 year's strong order intake.  The operating margin of the newly acquired
 companies was the same as for the rest of the group.
     Compared to the first quarter 2000, net financial expense doubled to
 $21 million, mainly as a result of higher debt incurred for acquisitions and
 the share repurchase program but also due to higher interest rates.  The
 financial net was also impacted by a $3 million charge for the devaluation of
 the Turkish Lira.
     The effective tax rate increased to 42% from 41% in the first quarter
 2000.  This increase reflects the fact that profits have fallen while
 non-deductible goodwill amortization remained almost unchanged.
     Earnings per share fell by $.33 to $.21 from the corresponding quarter
 previous year but improved by $.01 from the preceding quarter.  Of the
 decline, five cents is due to currency exchange effects (including both
 translation and transaction effects).  Earnings per share declined by one cent
 due to the higher effective tax rate.
 
     Cash Flow and Balance Sheet
     During the quarter, the operations generated $66 million in cash compared
 to $70 million during the same quarter of 2000.  Net capital expenditures
 amounted to $66 million and $48 million, respectively.  The largest capital
 expenditures were expansion of the production capacity for inflators, airbag
 assembly and weaving capacity for the Inflatable Curtain.
     After operating and investing activities, operations used $14 million in
 cash.  Investments in shares accounted for $18 million.  During the
 corresponding period in 2000, operations generated $17 million in cash.
     Net debt fell during the quarter by $7 million to $1,002 million and gross
 interest-bearing debt increased by $20 million to $1,111 million.
     The net debt to capitalization ratio stood unchanged during the quarter at
 35%.  The equity has been reduced by currency translation effects as a result
 of the stronger U.S. dollar.
 
     Employees
     The number of employees remained unchanged 28,000 during the quarter.  A
 reduction of 200 in high-cost countries was offset by a similar increase in
 low labor-cost countries.  The headcount reduction program in the U.S. has
 been successfully implemented.  Consequently, the total headcount in the U.S.
 has been reduced during the last six months by more than 900 (approx. 10%),
 including temporary hourly workers.  In addition, nearly 100 employees are
 currently on furlough.
 
     Significant Events
     -- Autoliv has exercised one of its options and increased its holding in
        the European inflator company Livbag to 83% from 66% for approximately
        $12 million.  Autoliv has also invested $6 million in the new joint
        venture Autoliv-Mando Corporation in Korea.
 
     -- The machined parts business in Utah, which manufactures steel
        components for inflators, has been sold as a result of Autoliv's
        strategy to divest non-core businesses.  Last year the business had
        $11 million in sales and 60 employees.  Over the last two years,
        Autoliv has sold or closed nine non-core business units with 1,300
        employees.  In addition to reducing costs, these transactions have
        released over $60 million that was tied up in the operations and their
        buildings.
 
     -- In the new European crash test program, Euro NCAP, Renault's new
        Laguna, to which Autoliv is the exclusive supplier of safety systems,
        became the first vehicle to receive the highest possible rating.  The
        vehicle has Autoliv's patented Inflatable Curtain for head protection
        in side impacts, Autoliv's new frontal airbag system (for which Autoliv
        received the Annual Award of the British Automobile Association) and
        Autoliv's side airbags for chest protection also in the back seats.
        This car is also the first vehicle in the world in which the driver's
        seat belt has two pretensioners.  The safety electronics and the
        related software program are also sup plied by Autoliv.
 
     -- Magnus Lindquist has been appointed new Chief Financial Officer and
        Vice President Finance of Autoliv Inc.  Currently, he holds the same
        position at Perstorp AB, a public Swedish-based chemistry and materials
        technology corporation.  He will assume his new position in July.
 
     -- The Annual General Meeting of Stockholders will be held in Chicago on
        April 24, 2001.  Holders of record on February 26, are entitled to be
        present and vote at the Meeting.  Stockholders are urged to return
        their proxy cards whether or not they plan to attend the meeting.  In
        conjunction with the meeting, the Chairman of the Board, Mr. Gunnar
        Bark, will retire from the Board.  Mr. S. Jay Stewart has been elected
        new Chairman.
 
     Prospects
     Assuming that the current exchange rate for the U.S. dollar prevails for
 the rest of the year, Autoliv's sales will be negatively impacted by 4% and 2%
 during the second quarter and the rest of the year, respectively.
 Acquisitions are expected to add 2% to sales in the second quarter.  The
 supply value of safety systems per vehicle is expected to continue to grow.
     After the cuts in car inventories during the first quarter, North American
 vehicle production is expected to recover (according to market institutes) by
 8% during the second quarter, but it will still be 10% below the level
 recorded for the second quarter last year.  During the remaining nine months,
 it is expected to be 6% below the corresponding level last year.  For
 Autoliv's main U.S. customers the discrepancy is expected to be some what
 greater.  In Europe, vehicle production has been expected to be flat in the
 second quarter (which would imply a 2% decrease from the first quarter 2001)
 and increase by 2% in the second half of the year.  Recent events, however,
 indicate that car production in Europe may start to weaken.
     Material prices have remained high, but on the spot markets the prices for
 several commodities have fallen.  Provided that these price reductions feed
 through to the manufactured components that Autoliv buys, the potential to
 reduce costs should increase later this year.  Autoliv's costs will also be
 reduced by transferring production to low labor-cost countries and by further
 implementing the action program that was announced at the beginning of the
 year.  The program includes a reduction of the headcount by more than 1,000 in
 the U.S. or approximately 12% and consolidation of the manufacturing
 structure.
 
     Dividend and Next Report
     A dividend of 11 cents per share will be paid on June 7 to Shareholders of
 record as of May 10.  The ex-date, when the shares will trade without the
 right to the dividend, is May 8.
     The next quarterly report for the period April 1 through June 30 will be
 published on July 26, 2001.
 
     "Safe Harbor Statement"
     Statements in this report that are not statements of historical fact may
 be forward-looking statements, which involve risks and uncertainties,
 including -- but not limited to -- continued fluctuation of foreign
 currencies, fluctuations in vehicle production schedules for which the company
 is a supplier, continued uncertainty in program awards and performance, the
 financial results of companies in which Autoliv has made technology
 investments, and other factors discussed in Autoliv's filings with the
 Securities and Exchange Commission.
 
 
                                   KEY RATIOS
 
                                 Quarter             Latest
                               Jan. - March        12 months        Full Year
                               2001    2000   April 00 - March 01      2000
 
     Earnings per share a)     $.21    $.54          $1.35            $1.67
     Equity per share         19.42   19.16          19.42            19.49
 
     Working capital,
      $ in millions             373     272            373              365
     Capital employed,
      $ in millions           2,901   2,581          2,901            2,919
     Net debt,
      $ in millions           1,002     619          1,002            1,009
     Net debt to equity, %       53      33             53               53
     Net debt to
      capitalization, % b)       35      24             35               35
 
     Gross margin, % c)        17.2    21.0           18.1             19.1
     EBITDA-margin, % d)       12.3    15.7           13.9             14.8
     Operating/EBIT
      margin, % e)              5.5     9.6            7.2              8.2
 
     Return on equity, %        4.4    11.4            7.0              8.7
     Return on capital
      employed, %               8.3    15.4           10.5             12.4
 
     Average number of
      shares in millions a)    97.8   102.4           99.8            100.9
     Number of shares at
      period-end in
      millions a)              97.8   102.3           97.8             97.8
     Number of employees
      at period-end          28,000  24,600         28,000           28,000
 
     a)Assuming dilution
     b)Net debt in relation to net debt and equity
     c)Gross profit relative to sales
     d)Income before interest, taxes, depreciation and amortization
        relative to sales
     e)Operating income relative to sales
 
 
                       CONSOLIDATED STATEMENTS OF INCOME
                  (Dollars in millions, except per share data)
 
 
                                 Quarter             Latest
                               Jan. - March         12 months       Full Year
                               2001    2000   April 00 - March 01     2000
     Net sales
     - Airbag products       $757.1    $778.7      $2,912.7         $2,934.3
     - Seat belt products     323.5     305.3       1,200.0          1,181.8
     Total net sales        1,080.6   1,084.0       4,112.7          4,116.1
 
     Cost of sales           -895.0    -855.9      -3,369.1         -3,330.0
     Gross profit             185.6     228.1         743.6            786.1
 
     Selling, general &
      administrative expense  -49.9     -49.2        -190.7           -190.0
     Research & development   -59.1     -58.9        -195.9           -195.7
     Amortization of
      intangibles             -17.1     -15.9         -67.9            -66.7
     Other income, net          0.0       0.2           5.6              5.8
     Operating income          59.5     104.3         294.7            339.5
 
     Equity in earnings
      of affiliates             0.9       0.7           4.5              4.3
     Financial income           2.5       2.8           9.3              9.6
     Financial expense        -23.3     -12.5         -73.6            -62.8
     Income before taxes       39.6      95.3         234.9            290.6
 
     Income taxes             -16.7     -38.8         -95.1           -117.2
     Minority interests
      in subsidiaries          -2.1      -1.3          -5.5             -4.7
     Net income                20.8      55.2         134.3            168.7
     Earnings per share        $.21      $.54         $1.35            $1.67
 
 
                           CONSOLIDATED BALANCE SHEET
                             (Dollars in millions)
 
                                                      March 31    December 31
                                                         2001           2000
     Assets
     Cash & cash equivalents                           $109.5          $82.2
     Accounts receivable                                886.0          835.4
     Inventories                                        322.3          333.5
     Other current assets                                88.6           97.9
     Total current assets                             1,406.4        1,349.0
 
     Property, plant & equipment, net                   852.9          867.2
     Intangible assets, net (mainly goodwill)         1,723.9        1,739.3
     Other assets                                       113.0          112.3
     Total assets                                     4,096.2        4,067.8
 
     Liabilities and shareholders' equity
     Short-term debt                                    387.5          353.8
     Accounts payable                                   529.6          540.3
     Other current liabilities                          394.7          361.8
     Total current liabilities                        1,311.8        1,255.9
 
     Long-term debt                                     723.7          737.4
     Other non-current liabilities                      139.9          142.4
     Minority interest in subsidiaries                   21.7           22.0
     Shareholders' equity                             1,899.1        1,910.1
     Total liabilities and shareholders' equity      $4,096.2       $4,067.8
 
     Working capital, $ in millions                       373            365
     Capital employed, $ in millions                    2,901          2,919
     Net debt, $ in millions                            1,002          1,009
 
 
                            SELECTED CASH-FLOW ITEMS
                             (Dollars in millions)
 
                                 Quarter               Latest
                               Jan. - March           12 Months      Full Year
                               2001    2000      April 00 - March 01    2000
 
     Net income               $20.8    $55.2           $134.3          $168.7
     Depreciation
      and amortization         73.1     65.6            276.6           269.1
     Deferred taxes and other  -4.0     -1.9             17.6            19.7
     Change in
      working capital         -23.5    -48.7           -166.5          -191.7
     Net cash provided
      by operations            66.4     70.2            262.0           265.8
 
     Capital
      expenditures, net       -65.9    -48.3           -234.1          -216.5
     Acquisitions of
      businesses, net         -14.9     -4.6           -221.7          -211.4
     Net cash after
      operating and
      investing activities   $-14.4    $17.3          $-193.8         $-162.1
 
 

SOURCE Autoliv Inc.
    STOCKHOLM, Sweden, April 19 /PRNewswire/ -- Autoliv Inc. (NYSE:   ALV)
 (SSE: ALIV), the world wide leader in automotive safety systems, reported
 better-than-expected sales and earnings for the quarter ended March 31, 2001,
 despite the fact that the negative trends from the fourth quarter last year
 (i.e. falling car production and higher material costs) have continued.
     Sales improved by 8% compared to the most recent quarter and stood
 unchanged at $1.1 billion compared to the first quarter previous year.  Income
 before taxes improved by 12%, net income by 7% and earnings per share by 5%
 from the most recent quarter.  Compared to the year-ago quarter, income before
 taxes declined by 58% to $40 million, net income by 62% to $21 million and the
 earnings per share by 61% to $.21.
 
     Sales
     Consolidated net sales during the three-month period ended March 31, 2001,
 amounted to $1,081 million.  This was the same level as recorded in the first
 quarter last year, which was the best sales quarter ever.  Compared to the
 preceding quarter sales rose by 8%.
     Sales of newly acquired companies (net of divestitures) added 8% to
 consolidated sales in the first quarter primarily as a result of the
 acquisitions of OEA and NSK's North American seat belt operations in the
 second quarter last year.  Currency translation effects reduced consolidated
 reported sales by 5%.  Consequently, Autoliv's organic sales (i.e.
 consolidated sales adjusted for currency effects and
 acquisitions/divestitures) declined by 3%.
     This compares favorably with global light vehicle production, which is
 estimated to have fallen by 7%.  Autoliv's sales were particularly strong in
 Europe, where sales rose by 7% in local currencies although European car
 production did not increase.  In U.S. dollars, Autoliv's European sales
 declined, however, by 1% due to the weak Euro.  In North America, Autoliv's
 organic sales declined by 12% while light vehicle production fell by 16%.  For
 Autoliv's most important customers in North America (Chrysler, Ford and
 General Motors) the reduction was over 20%.  Including acquisitions, Autoliv's
 North American sales increased slightly.
     Autoliv's relatively strong sales performance was mainly driven by the
 stronger-than-expected car production in Europe and the introduction of
 side-impact airbags such as the Inflatable Curtain, as well as by market share
 gains in the U.S. seat belt market and the global steering wheel market.
     Sales of airbag products (incl. steering wheels) declined by 3% to
 $757 million from $779 million.  Currency effects reduced reported sales by
 4%.  Acquisitions increased sales by 8%.  Consequently, organic sales declined
 by 7% as a result of the weak U.S. car production and negative customer mix.
 The negative factors have been partly offset by Autoliv's strong performance
 in side airbag and steering wheel products, where consolidated sales rose by
 30% and 15%, respectively.  Even in the depressed U.S. market, sales of these
 products rose.
     Sales of seat belt products (incl. seat sub-systems) grew by 6% to
 $324 million from $305 million.  Currency effects reduced reported sales by
 7%, while acquisitions in creased sales by 7%.  Consequently, organic sales
 growth was 6%.  This growth in sales was mainly driven by market share gains
 in the U.S. and break throughs in the U.S. for Autoliv's seat belt
 pretensioners.  Including the acquisition of NSK's North American seat belt
 business, Autoliv's seat belt sales in North America doubled.
 
     Earnings
     Gross profit during the quarter decreased by $43 million to $186 million
 and the gross margin fell to 17.2% from 21.0%.  Compared to the fourth quarter
 2000, however, the gross margin improved from 15.5% and the gross profit
 improved by $30 million or by 19%.  The deterioration from the previous year
 was primarily due to the fall in U.S. vehicle production, higher material
 prices and material content, as well as to an unfavorable product mix.  The
 acquisitions of OEA and NSK's seat belt operations in North America have also
 reduced Autoliv's gross margin.
     The improvement from the fourth quarter was driven by sales performance
 that has been better than expected.  The implementation of the action program
 that Autoliv announced at the beginning of this year has been faster than
 originally anticipated.  Most of the benefits will materialize gradually later
 in the year.  A reduction in the number of supply chain issues has also
 contributed to the gross profit and margin improvements.
     Operating income declined by $45 million to $60 million and the operating
 margin fell to 5.5% from 9.6%.  Compared to the fourth quarter 2000, however,
 the margin rose from 4.9% and operating income improved by $11 million or by
 22%.  The decrease from previous year is principally due to the
 above-mentioned $43 million decline in gross profit.  The R&D expenditures
 were unchanged in relation to sales from the first quarter 2000 despite last
 year's strong order intake.  The operating margin of the newly acquired
 companies was the same as for the rest of the group.
     Compared to the first quarter 2000, net financial expense doubled to
 $21 million, mainly as a result of higher debt incurred for acquisitions and
 the share repurchase program but also due to higher interest rates.  The
 financial net was also impacted by a $3 million charge for the devaluation of
 the Turkish Lira.
     The effective tax rate increased to 42% from 41% in the first quarter
 2000.  This increase reflects the fact that profits have fallen while
 non-deductible goodwill amortization remained almost unchanged.
     Earnings per share fell by $.33 to $.21 from the corresponding quarter
 previous year but improved by $.01 from the preceding quarter.  Of the
 decline, five cents is due to currency exchange effects (including both
 translation and transaction effects).  Earnings per share declined by one cent
 due to the higher effective tax rate.
 
     Cash Flow and Balance Sheet
     During the quarter, the operations generated $66 million in cash compared
 to $70 million during the same quarter of 2000.  Net capital expenditures
 amounted to $66 million and $48 million, respectively.  The largest capital
 expenditures were expansion of the production capacity for inflators, airbag
 assembly and weaving capacity for the Inflatable Curtain.
     After operating and investing activities, operations used $14 million in
 cash.  Investments in shares accounted for $18 million.  During the
 corresponding period in 2000, operations generated $17 million in cash.
     Net debt fell during the quarter by $7 million to $1,002 million and gross
 interest-bearing debt increased by $20 million to $1,111 million.
     The net debt to capitalization ratio stood unchanged during the quarter at
 35%.  The equity has been reduced by currency translation effects as a result
 of the stronger U.S. dollar.
 
     Employees
     The number of employees remained unchanged 28,000 during the quarter.  A
 reduction of 200 in high-cost countries was offset by a similar increase in
 low labor-cost countries.  The headcount reduction program in the U.S. has
 been successfully implemented.  Consequently, the total headcount in the U.S.
 has been reduced during the last six months by more than 900 (approx. 10%),
 including temporary hourly workers.  In addition, nearly 100 employees are
 currently on furlough.
 
     Significant Events
     -- Autoliv has exercised one of its options and increased its holding in
        the European inflator company Livbag to 83% from 66% for approximately
        $12 million.  Autoliv has also invested $6 million in the new joint
        venture Autoliv-Mando Corporation in Korea.
 
     -- The machined parts business in Utah, which manufactures steel
        components for inflators, has been sold as a result of Autoliv's
        strategy to divest non-core businesses.  Last year the business had
        $11 million in sales and 60 employees.  Over the last two years,
        Autoliv has sold or closed nine non-core business units with 1,300
        employees.  In addition to reducing costs, these transactions have
        released over $60 million that was tied up in the operations and their
        buildings.
 
     -- In the new European crash test program, Euro NCAP, Renault's new
        Laguna, to which Autoliv is the exclusive supplier of safety systems,
        became the first vehicle to receive the highest possible rating.  The
        vehicle has Autoliv's patented Inflatable Curtain for head protection
        in side impacts, Autoliv's new frontal airbag system (for which Autoliv
        received the Annual Award of the British Automobile Association) and
        Autoliv's side airbags for chest protection also in the back seats.
        This car is also the first vehicle in the world in which the driver's
        seat belt has two pretensioners.  The safety electronics and the
        related software program are also sup plied by Autoliv.
 
     -- Magnus Lindquist has been appointed new Chief Financial Officer and
        Vice President Finance of Autoliv Inc.  Currently, he holds the same
        position at Perstorp AB, a public Swedish-based chemistry and materials
        technology corporation.  He will assume his new position in July.
 
     -- The Annual General Meeting of Stockholders will be held in Chicago on
        April 24, 2001.  Holders of record on February 26, are entitled to be
        present and vote at the Meeting.  Stockholders are urged to return
        their proxy cards whether or not they plan to attend the meeting.  In
        conjunction with the meeting, the Chairman of the Board, Mr. Gunnar
        Bark, will retire from the Board.  Mr. S. Jay Stewart has been elected
        new Chairman.
 
     Prospects
     Assuming that the current exchange rate for the U.S. dollar prevails for
 the rest of the year, Autoliv's sales will be negatively impacted by 4% and 2%
 during the second quarter and the rest of the year, respectively.
 Acquisitions are expected to add 2% to sales in the second quarter.  The
 supply value of safety systems per vehicle is expected to continue to grow.
     After the cuts in car inventories during the first quarter, North American
 vehicle production is expected to recover (according to market institutes) by
 8% during the second quarter, but it will still be 10% below the level
 recorded for the second quarter last year.  During the remaining nine months,
 it is expected to be 6% below the corresponding level last year.  For
 Autoliv's main U.S. customers the discrepancy is expected to be some what
 greater.  In Europe, vehicle production has been expected to be flat in the
 second quarter (which would imply a 2% decrease from the first quarter 2001)
 and increase by 2% in the second half of the year.  Recent events, however,
 indicate that car production in Europe may start to weaken.
     Material prices have remained high, but on the spot markets the prices for
 several commodities have fallen.  Provided that these price reductions feed
 through to the manufactured components that Autoliv buys, the potential to
 reduce costs should increase later this year.  Autoliv's costs will also be
 reduced by transferring production to low labor-cost countries and by further
 implementing the action program that was announced at the beginning of the
 year.  The program includes a reduction of the headcount by more than 1,000 in
 the U.S. or approximately 12% and consolidation of the manufacturing
 structure.
 
     Dividend and Next Report
     A dividend of 11 cents per share will be paid on June 7 to Shareholders of
 record as of May 10.  The ex-date, when the shares will trade without the
 right to the dividend, is May 8.
     The next quarterly report for the period April 1 through June 30 will be
 published on July 26, 2001.
 
     "Safe Harbor Statement"
     Statements in this report that are not statements of historical fact may
 be forward-looking statements, which involve risks and uncertainties,
 including -- but not limited to -- continued fluctuation of foreign
 currencies, fluctuations in vehicle production schedules for which the company
 is a supplier, continued uncertainty in program awards and performance, the
 financial results of companies in which Autoliv has made technology
 investments, and other factors discussed in Autoliv's filings with the
 Securities and Exchange Commission.
 
 
                                   KEY RATIOS
 
                                 Quarter             Latest
                               Jan. - March        12 months        Full Year
                               2001    2000   April 00 - March 01      2000
 
     Earnings per share a)     $.21    $.54          $1.35            $1.67
     Equity per share         19.42   19.16          19.42            19.49
 
     Working capital,
      $ in millions             373     272            373              365
     Capital employed,
      $ in millions           2,901   2,581          2,901            2,919
     Net debt,
      $ in millions           1,002     619          1,002            1,009
     Net debt to equity, %       53      33             53               53
     Net debt to
      capitalization, % b)       35      24             35               35
 
     Gross margin, % c)        17.2    21.0           18.1             19.1
     EBITDA-margin, % d)       12.3    15.7           13.9             14.8
     Operating/EBIT
      margin, % e)              5.5     9.6            7.2              8.2
 
     Return on equity, %        4.4    11.4            7.0              8.7
     Return on capital
      employed, %               8.3    15.4           10.5             12.4
 
     Average number of
      shares in millions a)    97.8   102.4           99.8            100.9
     Number of shares at
      period-end in
      millions a)              97.8   102.3           97.8             97.8
     Number of employees
      at period-end          28,000  24,600         28,000           28,000
 
     a)Assuming dilution
     b)Net debt in relation to net debt and equity
     c)Gross profit relative to sales
     d)Income before interest, taxes, depreciation and amortization
        relative to sales
     e)Operating income relative to sales
 
 
                       CONSOLIDATED STATEMENTS OF INCOME
                  (Dollars in millions, except per share data)
 
 
                                 Quarter             Latest
                               Jan. - March         12 months       Full Year
                               2001    2000   April 00 - March 01     2000
     Net sales
     - Airbag products       $757.1    $778.7      $2,912.7         $2,934.3
     - Seat belt products     323.5     305.3       1,200.0          1,181.8
     Total net sales        1,080.6   1,084.0       4,112.7          4,116.1
 
     Cost of sales           -895.0    -855.9      -3,369.1         -3,330.0
     Gross profit             185.6     228.1         743.6            786.1
 
     Selling, general &
      administrative expense  -49.9     -49.2        -190.7           -190.0
     Research & development   -59.1     -58.9        -195.9           -195.7
     Amortization of
      intangibles             -17.1     -15.9         -67.9            -66.7
     Other income, net          0.0       0.2           5.6              5.8
     Operating income          59.5     104.3         294.7            339.5
 
     Equity in earnings
      of affiliates             0.9       0.7           4.5              4.3
     Financial income           2.5       2.8           9.3              9.6
     Financial expense        -23.3     -12.5         -73.6            -62.8
     Income before taxes       39.6      95.3         234.9            290.6
 
     Income taxes             -16.7     -38.8         -95.1           -117.2
     Minority interests
      in subsidiaries          -2.1      -1.3          -5.5             -4.7
     Net income                20.8      55.2         134.3            168.7
     Earnings per share        $.21      $.54         $1.35            $1.67
 
 
                           CONSOLIDATED BALANCE SHEET
                             (Dollars in millions)
 
                                                      March 31    December 31
                                                         2001           2000
     Assets
     Cash & cash equivalents                           $109.5          $82.2
     Accounts receivable                                886.0          835.4
     Inventories                                        322.3          333.5
     Other current assets                                88.6           97.9
     Total current assets                             1,406.4        1,349.0
 
     Property, plant & equipment, net                   852.9          867.2
     Intangible assets, net (mainly goodwill)         1,723.9        1,739.3
     Other assets                                       113.0          112.3
     Total assets                                     4,096.2        4,067.8
 
     Liabilities and shareholders' equity
     Short-term debt                                    387.5          353.8
     Accounts payable                                   529.6          540.3
     Other current liabilities                          394.7          361.8
     Total current liabilities                        1,311.8        1,255.9
 
     Long-term debt                                     723.7          737.4
     Other non-current liabilities                      139.9          142.4
     Minority interest in subsidiaries                   21.7           22.0
     Shareholders' equity                             1,899.1        1,910.1
     Total liabilities and shareholders' equity      $4,096.2       $4,067.8
 
     Working capital, $ in millions                       373            365
     Capital employed, $ in millions                    2,901          2,919
     Net debt, $ in millions                            1,002          1,009
 
 
                            SELECTED CASH-FLOW ITEMS
                             (Dollars in millions)
 
                                 Quarter               Latest
                               Jan. - March           12 Months      Full Year
                               2001    2000      April 00 - March 01    2000
 
     Net income               $20.8    $55.2           $134.3          $168.7
     Depreciation
      and amortization         73.1     65.6            276.6           269.1
     Deferred taxes and other  -4.0     -1.9             17.6            19.7
     Change in
      working capital         -23.5    -48.7           -166.5          -191.7
     Net cash provided
      by operations            66.4     70.2            262.0           265.8
 
     Capital
      expenditures, net       -65.9    -48.3           -234.1          -216.5
     Acquisitions of
      businesses, net         -14.9     -4.6           -221.7          -211.4
     Net cash after
      operating and
      investing activities   $-14.4    $17.3          $-193.8         $-162.1
 
 SOURCE  Autoliv Inc.