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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.
Autoliv
Autoliv
Autoliv Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.com 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.
- Supply chain disruptions led to low customer demand visibility and material changes to customer call-offs with short notice which negatively impacted our production efficiency and profitability in the quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income