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Dec 31, 2022
Autoliv Q4 2022 Earnings Report
Solid performance driven by price increases, cost reductions and volume growth.
Key Takeaways
Autoliv reported solid Q4 2022 results with a 10% increase in net sales and significant improvement in profitability, driven by successful execution of price increases, cost reductions, and volume growth. The company's operating margin improved to 9.8%, and adjusted EPS increased by 40% to $1.83.
Sales increased organically by 18%, outperforming global LVP growth by 15pp.
Profitability improved significantly, driven by successful execution of price increases, cost reductions and volume growth.
Operating cash flow improved from $317 million to $462 million, driven by higher net income and positive working capital effects.
Free cash flow increased to $297 million.
Revenue by Geographic Location
Forward Guidance
For full year 2023, Autoliv anticipates organic sales growth of around 15% and an adjusted operating margin of around 8.5-9%.
Positive Outlook
- Organic sales growth of around 15%.
- Positive cash flow trend should allow for increasing shareholder returns.
- Extensive customer discussions initiated early in 2022 that resulted in price increases to compensate for high raw material cost inflation.
- A high level of product launches and relentless cost control also supported our strong performance.
- Order win rates for new EV platforms were high, both with new EV makers and traditional OEMs.
Challenges Ahead
- Around 1% negative FX effect on net sales.
- Tax rate around 32%.
- Challenges from inflation impacting our non-raw material costs such as labor, logistics and energy.
- Supply Chain LVP was limited in Q4 2022 as a result of the global semiconductor shortage and other industry supply chain disruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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