STOCKHOLM, March 19, 2020 /PRNewswire/ -- Autoliv,
Inc. (NYSE: ALV) (SSE: ALIVsdb), the worldwide leader
in vehicle safety systems, today announced that the coronavirus
(COVID-19) outbreak will likely lead to a negative effect on the
Company's operations due to how the outbreak is affecting the
automotive industry in general. The extent of such negative impact
remains to be seen. Autoliv has tapped $500
million from its revolving credit facility to pay down
existing short-term debt and for general corporate purposes.
Autoliv is continuously monitoring the evolving COVID-19 pandemic
and proactively taking measures to minimize any consequences for
customers and mitigate the impact on the Company.
The COVID-19 outbreak is now impacting our customers in
Europe and this week there have
been several announcements by our customers of plant closures in
e.g. France, Italy, Spain
and Germany. Based on our most
recent information from our customers, media and other sources, we
estimate that 63 customer plants in Europe will close or have already closed. A
number of our customers announced late yesterday shut down of all
plants in the US as well as closures in other countries. How long
these plants will be closed, or to what extent more will follow is
highly uncertain.
In light of these events, we are taking cost reduction actions
to mitigate the impacts and Autoliv will adjust its production in
accordance with the development of the demand situation, and it
cannot be excluded that temporary Autoliv plant closures may become
necessary. Management focus is currently on strategic planning for
various scenarios, which includes the potential there is a
significant decline in light vehicle demand. In the event of such
scenarios, the Company will take corresponding actions. At this
point, it is impossible to predict the overall operational and
financial impact this pandemic will have on Autoliv although it
will likely to lead to negative effects on our operations.
Our actions to mitigate the effects of lower business activity
include expanding our existing structural efficiency program,
balancing our labor force and the sourcing of direct materials,
reducing discretionary spending and securing funding availability
to support our business activities.
Additionally, today we have drawn down $500 million of our existing committed
$1.1 billion Revolving Credit
Facility (the "Facility"). The Facility is with 14 international
banks and matures in July 2023. The
Company intends to use $300 million
of the draw down to pay existing short-term debt maturities for the
next three months. We plan to use the remaining amounts for general
corporate purposes. The remaining $600
million of the Facility is still available to the Company
for further potential drawdown. The availability of the Facility is
not subject to any financial covenants nor is any other substantial
financing of Autoliv subject to any financial covenants. For the
remainder of 2020, the Company's only major debt maturity is €100
million in December. Since early February, Autoliv has been
taking decisive actions at both the group and local levels to
mitigate the impacts of the COVID-19 outbreak, firstly to ensure
the health and wellbeing of our employees but also to establish the
right balance of capacity and cost. We have been able to secure a
well-functioning supply chain so far, and our operations in
China have gradually recovered
over the past few weeks, and is well tuned to customer demand as it
gradually recovers. "I feel confident we have the experience,
organization and people to navigate through this challenging
situation" said Mikael Bratt,
President and CEO. "Our task force for different workstreams, that
initially was set up in January to manage the COVID-19 outbreak in
China and later in South Korea and Japan, is now managing the situation on a
global level, which has allowed us to act promptly as the situation
continues to develop.
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 08.00 am CET
on March 19, 2020.
About Autoliv
Autoliv, Inc. is the worldwide leader in vehicle safety systems,
and through our subsidiaries we develop, manufacture and market
protective systems, such as airbags, seatbelts, steering wheels and
pedestrian protection systems for all major automotive
manufacturers in the world. Our products save over 30,000 lives
each year and prevent ten times as many severe injuries.
Our more than 65,000 employees in 27 countries are passionate
about our vision of Saving More Lives and quality is at the heart
of everything we do. We have 14 technical centers, with 20 test
tracks. Sales in 2019 amounted to US $ 8,548
million. The shares are listed on the New York Stock
Exchange (NYSE: ALV) and the Swedish Depository Receipts on Nasdaq
Stockholm (ALIV sdb). For more information go
to http://www.autoliv.com/.
Inquiries:
Investors & Analysts: Anders
Trapp, Investor Relations, Tel +46 0)8-587-206-71
Investors & Analysts: Henrik
Kaar, Investor Relations, Tel +46(0)8-587-206-14
Corporate Communications: Marja
Huotari, Tel +46(0)709-578-135
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 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, including without limitation, general
economic conditions; the impacts of the coronavirus (COVID-19) on
the Company's financial condition and business operations; changes
in light vehicle production; fluctuation in vehicle production
schedules for which the Company is a supplier, changes in general
industry and market conditions or regional growth or decline;
changes in and the successful execution of our capacity alignment,
restructuring and cost reduction initiatives and the market
reaction thereto; customer losses; changes in regulatory
conditions; customer bankruptcies, consolidations, or restructuring
or divestiture of customer brands; unfavorable fluctuations in
currencies or interest rates among the various jurisdictions in
which we operate; component shortages; work stoppages or other
labor issues; legislative or regulatory changes impacting or
limiting our business; political conditions; dependence on and
relationships with customers and suppliers; and other risks and
uncertainties identified under the headings "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Reports and Quarterly Reports
on Forms 10-K and 10-Q and any amendments thereto. 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
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SOURCE Autoliv