Autoliv Q3 Earnings Miss Expectations, Guidance Trimmed

Autoliv Inc. ALV reported third-quarter 2024 adjusted earnings of $1.84 per share, which missed the Zacks Consensus Estimate of $2 but rose 11% year over year. The company reported net sales of $2.56 billion in the quarter, which beat the Zacks Consensus Estimate of $2.54 million but fell 1.6% year over year.

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Organic sales fell 0.8% year over year and missed our estimate of 1.5% due to a negative light vehicle production mix in China. Autoliv reported adjusted operating income of $237 million, down 2.3% year over year. Adjusted operating margin was 9.3%, lower than 9.4% in the year-ago period due to the lower gross profit, higher selling, general and administrative costs and other expenses.

Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote

Sales in the Airbags and Associated Products segment totaled $1.74 billion, lagging our projection of $1.85 billion. Revenues also fell 1.4% on a year-over-year basis. The major categories within the segment that reported a decline in organic sales include passenger airbags, inflatable curtains, knee airbags and driver airbags.

Sales in the Seatbelts and Associated Products segment totaled $819 million, down 2% from the prior-year quarter due to the decline in organic sales in China. The metric, however, surpassed our projection of $764.8 million. 

Region-wise, overall sales in the Americas during the quarter under review totaled $851 million, which missed our estimate of $929.3 million and decreased 7.2% year over year.

Sales in Europe totaled $700 million, which surpassed our forecast of $645.4 million and increased 8.4% year over year.

Sales in China came in at $495 million, missing our projection of $536.9 million and fell 8.1% year over year.

Sales in the Rest of Asia totaled $508 million, which increased 2.7% year over year and topped our projection of $500 million.

Autoliv had cash and cash equivalents of $415 million as of Sept. 30, 2024. Long-term debt totaled $1.59 billion. Operating cash flow in the quarter under review was $177 million and capital expenditure amounted to $145 million, resulting in a free cash flow of $32 million. In the quarter, ALV paid a dividend of 68 cents per share and repurchased 1.33 million shares.

The company now forecasts full-year 2024 organic sales growth of around 1%, down from the earlier expectation of 2%. The adjusted operating margin is anticipated in the range of 9.5-10%. Operating cash flow is expected to be $1.1 billion in 2024.

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