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Jun 30, 2022
Autoliv Q2 2022 Earnings Report
Net sales increased slightly, but profitability declined due to higher raw material costs, currency movements, low LVP, and lockdowns in China.
Key Takeaways
Autoliv reported a slight increase in net sales but faced challenges in profitability due to rising raw material costs, currency fluctuations, low vehicle production, and lockdowns in China. The company's performance was stronger than expected in June due to price increases, LVP recovery, and a patent litigation settlement.
Sales increased organically by 8%, outperforming global LVP growth.
Profitability declined due to higher raw material costs, currency movements and lockdowns in China.
Operating cash flow was negative, impacted by adverse effects from working capital.
Progress in customer price discussions, including some retroactive compensations, improved adjusted operating margin.
Revenue by Geographic Location
Forward Guidance
Autoliv has adjusted its full year 2022 indication to a narrower range, reflecting actions and the shorter time span remaining of the year. The company remains confident in its medium-term adjusted operating margin target of 12%.
Positive Outlook
- Recent developments in supply chains are encouraging.
- Customer production plans are encouraging.
- Raw material prices developments are encouraging
- Cost recovery discussions are encouraging.
- Company believes it is well prepared for an improved market development.
Challenges Ahead
- Company is also making sure to be agile and prepared for a more adverse market development should that be necessary.
- Leverage ratio currently is above target range.
- Company continues to step up cost control measures.
- Cost reductions and footprint initiatives are on plan and include capacity alignments and footprint optimizations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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