Benzinga -
- Autoliv Inc (NYSE: ALV) reported fourth-quarter FY22 sales growth of 10% year-on-year to $2.33 billion, missing the consensus of $2.44 billion.
- Adjusted operating margin for the quarter was 10% versus 8.3% last year. Adjusted operating income increased 31% to $233 million.
- Return on capital employed expanded to 24.3%, and the adjusted return on capital employed was 24.9%.
- Gross profit for the quarter increased 8.3% Y/Y to $399 million with a gross margin of 17.1%.
- "In 2022, we faced the worst cost inflation seen in three decades, which initially significantly impacted our profitability," said CEO Mikael Bratt.
- "Through aggressive price adjustments, we managed to gradually offset this raw material cost inflation and profitability was restored towards the end of the year."
- Adjusted EPS of $1.83 beat the analyst consensus of $1.76.
- Operating cash flow totaled $462 million for the quarter. The company held cash and equivalents of $594 million at the end of the fourth quarter.
- Net debt as of Dec. 31, 2022, amounted to $1.18 billion.
- Outlook: Autoliv sees FY23 organic sales growth of around 15%.
- The company expects an adjusted operating margin of around 8.5%-9%.
- ALV sees around $900 million in operating cash flow.
- Price Action: ALV shares are trading higher by 4.82% at $89.02 during the pre-market session on Friday.