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Sep 30, 2024
Autoliv Q3 2024 Earnings Report
Solid sales outperformance achieved amidst challenging market conditions.
Key Takeaways
Autoliv reported solid sales outperformance in Q3 2024, with a 0.8% organic sales decline, 4pp better than global LVP decline. Profitability remained unchanged despite a slight net sales decrease, driven by cost reductions and commercial recoveries. The company reaffirms its guidance of around 9.5-10.0% adjusted operating margin for 2024.
Sales decreased organically by 0.8%, outperforming global LVP decline by 4pp.
Sales to domestic Chinese OEMs grew by 18%, twice as much as their LVP growth.
Profitability was unchanged due to cost reductions and commercial recoveries, offsetting inflationary pressures.
Operating cash flow was $177 million, on track towards $1.1 billion for 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Autoliv reaffirms its full year 2024 guidance, expecting to be at the low end of the range of around 9.5-10.0% adjusted operating margin and around 1% organic sales growth. Operating cash flow is on track towards the full year guidance of $1.1 billion.
Positive Outlook
- Expect further market share gains with domestic Chinese OEMs.
- Excess inflation compensation negotiations with customers have developed in line with expectations.
- Seasonally strong fourth quarter remaining of the year.
- Operating cash flow is on track towards the full year guidance of $1.1 billion.
- Balance sheet remains strong with a debt leverage of 1.4x.
Challenges Ahead
- Expect full year 2024 organic growth to be 1% instead of previously expected 2% due to unfavorable market mix development.
- Light vehicle production was weak in the third quarter, declining by close to 5% globally.
- Cost pressure from labor and other items had a negative impact on profitability.
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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