Autoliv Q4 2023 Earnings Report
Key Takeaways
Autoliv reported record sales and strong profitability in Q4 2023, with net sales of $2,751 million, an 18% increase year-over-year. Organic sales growth was 16%, outperforming global LVP growth. Profitability improved due to price increases, organic growth, and cost reduction activities. Operating cash flow remained strong at $447 million.
Record sales, increased organically by 16%, outperforming global LVP growth.
Profitability improved substantially due to price increases, organic growth, and cost reduction activities.
Operating cash flow remained strong at $447 million.
Leverage ratio improved to 1.2X despite returning $207 million to shareholders.
Autoliv
Autoliv
Forward Guidance
Autoliv's 2024 guidance is based on customer call-offs, a global LVP decline of around 1%, achievement of targeted cost compensation effects, and a reduction in customer call-off volatility.
Positive Outlook
- Around 5% organic sales growth
- Around 0% FX effect on net sales
- Around 10.5% adjusted operating margin
- Around $1.2 billion operating cash flow
- Lower call-off volatility than in 2023
Challenges Ahead
- Full year 2024 global LVP decline of around 1%
- Continued cost pressure from inflation relating mainly to labor
- Unfolding situation in the Red Sea has not yet had any measurable impact on our own operations but we note near-term trends of extended transit times and increased freight tariffs and surcharges has led to some customers lowering their near term production plans.
- Seasonality of past years is likely to be repeated in 2024, with an expected Q1 adjusted operating margin of around 7%
- Raw material price changes in 2024 to be largely reflected in price changes in our products, albeit with delays of several months.