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Dec 31, 2019
Autoliv Q4 2019 Earnings Report
Autoliv's profitability and cash flow improved in Q4 2019.
Key Takeaways
Autoliv reported Q4 2019 net sales of $2,191 million with 0.5% organic sales growth. The operating margin was 10.5% and adjusted operating margin was 11.1%. EPS increased by 268% to $1.78 and adjusted EPS increased by 30% to $1.84.
Organic growth outperformed global light vehicle production by 5.9pp, with all regions outperforming LVP. Order intake share remained high.
Profitability improved despite global LVP decline, driven by ramp-up of new programs, improved launch efficiency and the structural efficiency program. Adjusted operating margin and cash flow improved.
The structural efficiency program is on track, and we are planning and implementing a multitude of strategic initiatives and structural improvements supporting our medium-term profitability target.
2019 became the fifth straight year for Autoliv to have around 50% global order share.
Autoliv
Autoliv
Autoliv Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comChina Revenue
CapyFin.com Forward Guidance
For the full year 2020, Autoliv expects net sales growth of 3-4% and organic sales growth of 3-4%. The adjusted operating margin is expected to be at least 9.5%.
Positive Outlook
- Organic sales growth will outperform LVP by about 6pp
- Some support from raw material costs
- Savings from the structural efficiency program
- Seasonality to be even more pronounced than in 2019 in terms of quarterly profitability progression
- Expect a significantly stronger second half year.
Challenges Ahead
- Expected LVP decline
- Sharply declining inflator replacement sales
- Costs for planning and implementing the strategic initiatives with payback in later years
- The start of the year will be challenging
- Continuing high level of uncertainty in the automotive markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income