STOCKHOLM - Autoliv, Inc. (NYSE: NYSE:ALV), the global leader in automotive safety systems, reported a robust start to 2024 with first-quarter earnings and revenue surpassing analyst expectations.
The company announced an adjusted earnings per share (EPS) of $1.58, which was $0.14 higher than the consensus estimate of $1.44. Revenue for the quarter reached $2.62 billion, marginally exceeding the $2.61 billion forecast by analysts.
The positive earnings news propelled Autoliv's shares upward by 3.39%, signaling a strong market response. The company's financial performance was highlighted by a 5% increase in net sales compared to the first quarter of the previous year, with organic sales growth also at 5%. This growth outperformed the global Light Vehicle Production (LVP), which saw a 1% decline. The adjusted operating margin for the quarter improved significantly, reaching 7.6% from 5.3% in the same period last year.
Mikael Bratt, President and CEO of Autoliv, attributed the company's success to record sales, strategic cost reductions, and a series of new product launches that led to outperformance in all regions. "We delivered results in line with what we previously communicated, despite LVP being 1pp below what was expected three months ago, and we are on track to deliver on our full year outlook," said Bratt.
Looking ahead, Autoliv provided guidance for the full year of 2024, forecasting around 5% organic sales growth and an adjusted operating margin of approximately 10.5%. These expectations are in line with the company's strategic initiatives aimed at structural cost reduction and managing inflationary pressures.
The company's strong cash flow performance, with operating cash flow anticipated to be around $1.2 billion, reflects its continued focus on balance sheet efficiency. Moreover, Autoliv's leverage ratio of 1.3x, nearly unchanged from three months earlier and significantly lower than the previous year, underscores its financial stability and commitment to shareholder returns.
As Autoliv prepares for a record number of product launches in 2024 and continues to invest in growth markets such as Vietnam, China, and India, the company remains poised to maintain its momentum and achieve its target of around 12% adjusted operating margin in the future.
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