Autoliv, Inc. reported consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported sales of $2.7 billion increased year-over-year by close to 5%, due to stronger sales in China with both local and global OEMs. Adjusted earnings per share of $2.03 increased 19% year-over-year due to higher operating income and a lower tax rate. Operating cash flow was close to $400 million. Adjusted return on capital employed and return on equity was about 21% and 16%, respectively.

For full year, the company reported sales of $10.4 billion increased year-over-year around 3%. Adjusted earnings per share of $6.58 declined year-over-year, mainly due to the effect from Zenuity, which is focused on software development in ADAS and autonomous driving. Operating cash flow was approximately $936 million. CapEx was 5.5% of sales. Adjusted return on capital employed and return on equity of 19% and 14%, respectively.

The company's current estimate for tax rate for the full year 2018 is around 29%, excluding any discrete items. The company expects CapEx to remain higher than normal levels again in full year 2018. Full year 2018 indication is for an organic sales growth of more than 7%. This strong growth is mainly driven from Active Safety and Passive Safety in all major regions, except South Korea. Full year 2018 indication is for an adjusted operating margin of around 9%. The estimated year-over-year improvement is mainly a result of improved operating efficiencies and operating leverage and organic sales growth, which is partly offset by higher planned RD&E in Electronics and a negative impact from currencies. Full year 2018 early indication is for a net consolidated sales of more than 11% due to strong organic sales growth and favorable currency translation effect -- translation of about 4%.

Organic sales are expected to grow less than 1%, mainly due to strong growth in Rest of Asia, South America and Japan, which is mostly offset by Europe, South Korea and China. Sequentially, consolidated sales are expected to increase by about 2%, mainly due to the ramp up of new business in Passive Safety, which more than offsets the sequential decline in global LVP from the fourth quarter 2017 of about 3%. As a result, the company expects to achieve an adjusted operating margin of around 9% for the first quarter 2018. Net consolidated sales for the first quarter are expected to increase by more than 7% due to organic sales growth and favorable currency translation effect of more than 6%.