Autoliv Announces 2022 Guidance

(RTTNews) - While reporting first-quarter results on Friday, Autoliv, Inc. (ALV) announced full year 2022 indications of: around 5.5-7.0% adjusted operating margin; around 12%-17% organic sales growth; and around $750-850 million in operating cash flow.

"Our new indications for full year 2022 is based on the assumptions that global LVP will grow 0-5% and that we achieve our targeted cost compensation effects along with some market stabilization. Based on this, our ongoing actions should bring us back on track towards our mid-term adjusted operating margin target," said Mikael Bratt, President & CEO.

First quarter adjusted earnings per share was $0.45, a decline of 75% from prior year. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $1.11, for the quarter. Analysts' estimates typically exclude special items. The company said its profitability declined due to significant operating margin headwind from higher costs related mainly to raw materials but also related to supply chain disruptions, LVP volatility and high level of premium freight, all of which have been exacerbated by the war in Ukraine and lock downs in China. Adjusted operating margin was 3.2% compared to 10.6%, last year.

Net income was $83 million or $0.94 per share compared to $157 million or $1.79 per share, previous year.

Net sales were $2.12 billion, down 5.3% from last year. Analysts on average had estimated $2.18 billion in revenue. Sales declined by 1.0% organically as global LVP declined by around 4%.

Shares of Autoliv were down 7% in pre-market trade on Friday.