Autoliv’s 2017 net income down 24.7% y/y due to one-time goodwill impairment charge

Company plans to complete the planned spin-off of electronics business during the third quarter of 2018

Autoliv has reported 24.7% year-over-year (y/y) decline in net income to USD427.1 million for the financial year ended 31 December 2017, the Sweden-based automotive supplier said in a press release on 30 January. The company also witnessed 28.6% y/y drop in operating income to USD605.3 million, resulting 260 basis points decrease in operating income margin to 5.8%. Autoliv recorded decline in net income and operating income despite reporting 3.1% y/y increase in net sales to USD10.4 billion. The company attributed lower earnings to goodwill impairment charge of USD234 million, related to planned spin-off of its ‘Electronics’ business into a standalone company.