STOCKHOLM, Sweden — For the three-month period ended June 30, 2010, Autoliv Inc. reported a record quarterly operating income and margin of $229 million and 12.7 percent, respectively. Net sales increased by 51 percent to $1,802 million compared to the same quarter in 2009.

Excluding currency effects and acquisitions, sales grew organically by 40 percent compared to the increase in global light vehicle production of 29 percent.

Income before taxes improved to $206 million, net income to $146 million and earnings per share assuming dilution to $1.60.

The pre-tax income has been negatively affected by approximately $12 million for extinguishment of debt. Operations generated a positive cash flow of $251 million, and $195 million before financing. Net debt fell to $417 million despite acquisitions, restructuring payments and debt extinguishment payments totaling $181 million since the beginning of the year.

For the third quarter of 2010, the company expects consolidated net sales to rise close to 25 percent compared to the same quarter in 2009 with organic sales growing by at least 20 percent and anticipates an operating margin of at least 10 percent. Based on the current IHS (CSM) light vehicle production forecast, the Company indicates a net sales increase of close to 35 percent for the full year with organic sales growing by approximately 28 percent and indicates an operating margin of more than 11 percent.