Autoliv: Financial Report October - December 2023

Financial highlights Q4 2023 Financial highlights Q4 2023 $2,751 millionnet sales 18%  net sales increase16%organic sales growth*8.6%  operating margin12.1%  adjusted operating margin* $2.71EPS, 51% increase $3.74adjusted EPS*, 105% increase Full year 2024 guidance Around 5%  organic sales growthAround 0%FX effect on net salesAround 10.5%  adjusted operating marginAround$1.2 billion operating cash flow All change figures in this release...

STOCKHOLM, 26/01/2024 (informazione.news - comunicati stampa - industria)

net sales
 net sales increase
organic sales growth*
 operating margin
 adjusted operating margin*
EPS, 51% increase
adjusted EPS*, 105% increase

 organic sales growth
FX effect on net sales
 adjusted operating margin
 operating cash flow

 

Key business developments in the fourth quarter of 2023

 

 


As we indicated throughout the year, we finished 2023 strong. We achieved or exceeded all of our 2023 indications. Sales and adjusted operating income hit new records while operating cash flow remained strong. I am pleased that gross margin improved substantially. 2023 order intake was the highest in the past five years, supporting our around 45% market share position, with a good mix of new and traditional OEMs as well as EV and ICE platforms. 

We increased shareholder returns to more than $200 million in the quarter while continuing to improve our leverage ratio. As of the end of 2023, we have repurchased shares close to $0.5 billion under our existing $1.5 billion repurchase program.

We outperformed LVP in all regions except China , which had a very strong LVP growth for domestic OEMs with typically lower safety content. We strengthened our market position in China and our order intake was strong in the rapidly changing market, where domestic OEMs are now the drivers behind LVP development.
We continue to deliver on our structural cost reductions, with around 75% of the planned indirect workforce reductions detailed and announced. We also see positive effects on direct labor productivity.

Our 2023 performance developed very much as we indicated with heavy cost headwinds early in the year, which led to a weak Q1 2023. However, quarter-by-quarter, our performance improved, driven by customer recoveries, efficiencies, and organic growth leading to a substantial full year profitability improvement. Our sustainability agenda is yielding results with good progress in GHG emissions, renewable electricity use and incident rate. 

The seasonality of past years is likely to be repeated in 2024, with an expected Q1 adjusted operating margin of around 7%, followed by gradual quarterly improvements, leading to a full year 2024 adjusted operating margin of around 10.5%. Key drivers for the full year margin progression are continued improvement in call-off stability, outgrowing LVP and benefits from strategic and structural initiatives. The improving results we expect in 2024 should take us one important step closer to our target of around 12% adjusted operating margin.
 

Anders Trapp
Vice President Investor Relations
Tel +46 (0)8 5872 0671

Henrik Kaar
Director Investor Relations
Tel +46 (0)8 5872 0614

Gabriella Etemad
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 January 26, 2024 .

The following files are available for download:

 

 

 

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