Trasporti
Autoliv Financial Report April - June 2022
net sales
net sales increase
organic sales increase*
operating margin
adjusted operating margin*
EPS - a decrease of 24%
adjusted EPS* - a decrease of 25%
organic sales growth
negative FX effect on net sales
adjusted operating margin
operating cash flow
We managed good execution in a challenging environment in the second quarter, leading to better-than-expected results. A strong performance in June, with some LVP recovery and progress in the customer price discussions, including some retroactive compensations, means we are reporting a second quarter adjusted operating margin that is better than in the first quarter. Supply chains remained distressed in the quarter, aggravated by lockdowns in China . Raw material cost increases, currency movements and a lower-than-expected and volatile LVP were also major challenges in the quarter. Cash flow was negative in the quarter, mainly due to volatility and timing effects on working capital. We expect to recover most of these effects in the second half of the year.
In a quarter where we saw continued low and volatile LVP, Autoliv managed to outperform global LVP significantly, despite negative regional mix effects.
It is encouraging that we are making progress in compensation from our customers in the form of sustainable price increases. Discussions continue where we aim for prices that reflect changes in the cost environment and a contract structure that is flexible and allows for broader and faster adjustments to future changes in the business environment.
Recent developments in supply chains, customer production plans, raw material prices and our cost recovery discussions are encouraging, and we believe we are well prepared for an improved market development. However, we are also making sure we are agile and prepared for a more adverse market development should that be necessary. Therefore, we continue to step up our cost control measures. Cost reductions and footprint initiatives are on plan and include capacity alignments and footprint optimizations.
We are adjusting our full year 2022 indication to a narrower range, reflecting our actions and the shorter time span remaining of the year. Although leverage ratio currently is above our target range, we remain committed to our share repurchase ambitions over time. We remain confident in our medium-term adjusted operating margin target of 12%, based on the framework we outlined at our CMD in 2021.
Inquiries: Investors and Analysts
Anders Trapp
Vice President Investor Relations
Tel +46 (0)8 5872 0671
Henrik Kaar
Director Investor Relations
Tel +46 (0)8 5872 0614
Inquiries: Media
Gabriella Ekelund
Senior Vice President Communications
Tel +46 (0)70 612 6424
Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on July 22, 2022 .
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