DOW JONES NEWSWIRES
Sweden-based auto supplier Autoliv Inc. (ALV) cut 3,000 more
jobs in the first two months of 2009 as it accelerates efforts to
match costs with declines in auto sales worldwide.
The world's largest maker of seat belts and airbags said it has
reduced its work force by about 9,000, or 20%, since June,
including this year's cuts. Many auto makers and suppliers have
been slashing payrolls as sales began steep slides in the middle of
last year.
At the end of February, General Motors Corp. (GM) and Chrysler
LLC each owed Autoliv about $20 million. That is down from a
combined total of $50 million as of Jan. 31.
The Detroit auto makers have slowed payments to suppliers as
they struggle to fund operations. Both GM and Chrysler have
received billions of dollars in loans from the federal government
and are seeking more.
Autoliv said its expects capital spending of $200 million to
$250 million this year, down from $279 million in 2008.
The company drew $300 million this month from its revolving
credit facility, primarily for debt maturing in March and April. It
has $279 million in debt maturing in the rest of 2009, compared
with $892 million in cash and utilized long-term credit facilities
Feb. 28.
Autoliv also said it plans to offer about $200 million in common
stock and about $150 million in equity units in the U.S.
Its shares closed down 12% at $16 on Tuesday and were unchanged
in after-hours trading.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com