Loading...
•
Mar 31, 2024
Autoliv Q1 2024 Earnings Report
Achieved record first quarter sales with broad based improvements.
Key Takeaways
Autoliv reported record first quarter sales with a 5% organic sales growth, outperforming global LVP decline by 6pp. Profitability improved substantially, driven by organic growth and cost reduction activities. Strong cash flow improvement was also achieved.
Record first quarter sales, increased organically by 5%, which was 6pp better than global LVP decline of 1%.
Profitability improved substantially, driven mainly by organic growth and cost reduction activities; operating margin was 7.4%.
Operating cash flow improved by $168 million and free cash flow improved by $171 million.
Leverage ratio of 1.3x was close to unchanged compared to three months earlier and 0.3x lower than a year earlier despite returning $0.7 billion to shareholders.
Forward Guidance
Full year 2024 guidance is mainly based on customer call-offs, a full year 2024 global LVP decline of around 1%, the achievement of targeted cost compensation effects, and a sustained reduction in customer call-off volatility.
Positive Outlook
- Around 5% organic sales growth
- Around 0% FX effect on net sales
- Around 10.5% adjusted operating margin
- Around $1.2 billion operating cash flow
- Expecting seasonality of past years to likely continue in 2024, with a gradual improvement throughout the year.
Challenges Ahead
- Global LVP decline of around 1%
- Facing inflationary pressure again this year
- Continued cost pressure from inflation relating mainly to labor, especially in Europe and the Americas.
- Some OEMs changing certain vehicle model launch plans, mainly for EV platforms.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...