STOCKHOLM - Autoliv (NYSE:ALV) Inc., a global leader in automotive safety systems, reported a decline in second-quarter earnings and revenue, missing analyst expectations.
The company's adjusted earnings per share (EPS) came in at $1.87, falling short of the forecasted $2.22, while revenue also missed the mark at $2.60 billion compared to the anticipated $2.74 billion. The stock responded negatively to the news, dropping 7.4%.
In the second quarter of 2024, Autoliv experienced a net sales decrease of 1.1% compared to the same quarter last year, with a reported $2,605 million in net sales. Despite the challenges, the company achieved a 0.7% organic sales growth and an improved adjusted operating margin, which increased from 8.0% to 8.5%. The slight decline in net sales was attributed to lower light vehicle production with key customers, particularly in the Americas and China, which was partially offset by product launches and pricing strategies in Asia (excluding China) and Europe.
Autoliv's President and CEO, Mikael Bratt, commented on the results, stating, "Profitability continued to improve despite a slight decline in net sales. The improvement was driven by better pricing and successful execution of cost reductions." He also noted that the company is adjusting its full-year 2024 guidance slightly due to changes in light vehicle production (LVP) and adverse customer mix, while still expecting a significant increase in profitability in the second half of the year.
Looking ahead, Autoliv provided full-year 2024 guidance, forecasting around 2% organic sales growth and an adjusted operating margin of approximately 9.5-10.0%. The company anticipates around $1.1 billion in operating cash flow for the year. These projections are based on customer call-offs, an expected full-year 2024 global LVP decline of around 3%, and targeted cost compensation effects.
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