UPDATE 2-Cost cuts, emerging markets boost Autoliv Q3

* Has record third quarter, beats pretax profit forecast

* Gets restructuring, emerging markets boost company

* Sees sales growing faster than market

(Adds quotes, updates share price)

By Patrick Lannin and Johannes Hellstrom

STOCKHOLM, Oct 26 (BestGrowthStock) – World No.1 auto safety gear
company Autoliv (ALIVsdb.ST: ) posted strong earnings on Tuesday,
driven by cost cuts and growth in emerging markets, particularly
China, and forecast market-beating growth.

The company sells seatbelts, airbags and other safety
equipment to many of the world’s leading auto makers.

It has been growing in China with sales to both domestic
suppliers like Geely (0175.HK: ), which this year bought Swedish
car maker Volvo, as well as to foreign manufacturers.

It said it saw sales growing faster than the market in the
next few months.

“These record results reflect our ongoing restructuring
efforts, and our rapid growth in emerging markets,” the company
said after reporting a pretax profit of $190 million, above the
average Reuters poll forecast of $174 million.

It said its results represented its best showing in a third
quarter. Sales came in at $1.74 billion, also slightly ahead of
the $1.69 billion forecast.

Sales to GM [GM.UL], Honda Motor Co (7267.T: ), Nissan Motor
Co (7201.T: ) and Ford (F.N: ) contributed most to revenue growth,
while the highest organic sales growth was in sales to
Mitsubishi Motors (7211.T: ), Honda and Hyundai/KIA. (005380.KS: )
(000270.KS: )

Though 75 percent of Autoliv’s sales still come from the
traditional developed markets of Europe, North America and
Japan, the company has targeted China.

“We are growing market share (in China),” Chief Executive
Jan Carlson told a conference call, adding that a manufacturer
like Geely was now stocking some its vehicles with as much
safety equipment as a Western car maker.

Alongside emerging markets growth, Autoliv has also been
shifting production to low cost countries.

It recently bought a Chinese seatbelt maker and opened a
seatbelt webbing factory in India.

Autoliv shares, up about 46 percent this year, outpacing a
20 percent rise in the STOXX European (.SXAP: ) auto index, stood
0.5 percent higher by 1406 GMT.

Autoliv said it expected to outperform global car
production, leading to consolidated sales growth of 15 percent
in the fourth quarter and about 40 percent in the year.

It saw its operating margin at about 12 percent for both the
full year and the fourth quarter.

Its previous forecast was for sales to rise 35 percent in
the year and for operating margin to be more than 11 percent.

Carlson also said that spending the company’s cash on growth
was the main priority for the balance sheet, though he noted
Autoliv had been a “shareholder friendly” company.
(Reporting by Patrick Lannin; Editing by Will Waterman and
Sitaraman Shankar)

UPDATE 2-Cost cuts, emerging markets boost Autoliv Q3