NYSE$ALV

Autoliv Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Achieved strong sales growth driven by product launches and price increases, outperforming LVP in all regions.

Autoliv reported strong sales growth in Q1 2023, with a 17% increase in net sales and a 21% increase in organic sales. The company outperformed global LVP growth by 15 percentage points, driven by new product launches and higher prices. Profitability was positively impacted by price increases, organic growth, and cost reduction activities, but operating cash flow decreased due to negative working capital effects from high sales growth.

  • Sales increased organically by 21%, outperforming global LVP growth of 6.1% due to new product launches and higher prices.
  • Profitability was positively impacted by price increases, organic growth, and cost reduction activities, with an adjusted operating margin of 5.3%.
  • Operating cash flow decreased to negative $46 million due to negative working capital effects from high sales growth.
  • Free cash flow decreased to negative $189 million due to increased capital expenditure for capacity expansions and footprint activities.

Headline financials

Total Revenue

$2.49B

Previous: $2.12B+17.4%
EPS (adj)

$0.90

Previous: $0.45+100.0%
Operating margin

5.1%

Previous: 6.3%-19.0%
Adjusted operating margin

5.3%

Previous: 3.2%+65.6%
ROCE

13.0%

No prior period
Capital Expenditures

-$144M

Previous: -$112M-28.6%
Free Cash Flow

-$70M

Previous: -$29M-141.4%
Net Income

$74M

Previous: $83M-10.8%
Operating Income

$127M

Previous: $134M-5.2%
Gross Profit

$379M

Previous: $288M+31.6%
Cash & Equivalents

$713M

Previous: $938M-24.0%
Total Assets

$8.19B

Previous: $7.77B+5.4%

Revenue & EPS history

Autoliv · Revenue · Quarterly

$2.49B

Q1 2023+17.4%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Autoliv anticipates approximately 15% organic sales growth and around 8.5%-9.0% adjusted operating margin for the full year 2023, with operating cash flow around $900 million.

Tailwinds

  • Around 15% organic sales growth
  • Achieve targeted cost compensation effects
  • Customer call-off volatility is reduced
  • Expecting a gradually improving adjusted operating margin
  • Deliver a significant full year increase in cash flow and adjusted operating income

Headwinds

  • Around 1% negative FX effect on net sales
  • Global light vehicle production growth of around 3%
  • Cost pressures from labor, logistics, utilities and other items had a negative impact on our profitability.
  • Rising raw material costs amounted to around 0.5pp in operating margin headwind
  • Supply chain disruptions also led to low customer demand visibility and material changes to customer call-offs with short notice, which negatively impacted our production efficiency and profitability in the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.4%

Avg return

30 days after

54%

37 / 69 earnings

Positive

+10.0%

Q4 2017

Best reaction

-11.2%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%+4.3%+3.1%
Q4 2025-4.1%+0.1%-6.3%
Q3 2025-2.6%-4.5%-0.3%
Q2 2025+0.1%+0.9%+6.0%
Q1 2025+5.6%+4.0%+24.0%
Q4 2024-4.6%-6.8%-3.9%
Q3 2024+3.1%+2.8%+4.3%
Q2 2024-8.8%-9.9%-8.0%
Q1 2024+4.7%+4.0%+8.5%
Q4 2023+4.4%+3.4%+8.4%
Q3 2023+6.5%+7.7%+13.6%
Q2 2023+9.1%+8.9%-0.3%
Q1 2023-5.6%-6.7%-5.4%
Q4 2022+7.2%+7.8%+7.6%
Q3 2022+7.5%+7.8%+19.2%
Q2 2022+2.5%+4.2%+0.7%
Q1 2022-5.4%-6.7%-1.4%
Q4 2021+3.3%+7.3%-4.0%
Q3 2021-1.7%-0.7%+10.4%
Q2 2021-4.6%-2.2%+3.1%
Q1 2021+8.8%+7.1%+5.1%
Q4 2020+0.1%+0.1%+0.7%
Q3 2020-1.6%-10.7%+5.2%
Q2 2020-3.5%-0.9%+6.1%
Q1 2020+10.0%+9.3%+13.0%
Q4 2019+5.2%+3.2%-9.1%
Q3 2019-1.1%-5.2%-0.5%
Q2 2019+3.3%+10.4%-5.6%
Q1 2019+2.3%-2.8%-17.2%
Q4 2018-3.8%-4.7%-0.7%
Q3 2018+6.0%+4.1%+9.7%
Q2 2018+1.2%-1.9%-11.1%
Q1 2018-8.6%-6.1%+0.5%
Q4 2017+10.0%+4.5%+3.7%
Q3 2017+1.4%+2.0%+1.5%
Q2 2017-7.2%-5.9%-9.0%
Q1 2017-7.6%-6.1%+2.8%
Q4 2016-11.2%-11.3%-10.4%
Q3 2016-6.7%-6.9%-0.9%
Q2 2016-7.5%-6.1%-7.3%
Q1 2016+8.1%
Q4 2015-7.0%
Q3 2015+3.3%
Q2 2015+2.9%
Q1 2015-4.2%
Q4 2014+4.2%
Q3 2014-3.3%
Q2 2014-2.5%
Q1 2014-2.4%
Q4 2013+1.8%
Q3 2013+0.7%
Q2 2013+0.4%
Q1 2013+6.5%
Q4 2012-1.6%
Q3 2012-10.2%
Q2 2012-4.2%
Q1 2012+0.0%
Q4 2011+1.8%
Q3 2011+6.5%
Q2 2011-1.0%
Q1 2010+7.4%
Q1 2011+1.4%
Q4 2010-1.3%
Q4 2008-1.3%
Q3 2009-0.3%
Q3 2010-0.3%
Q2 2009+7.5%
Q2 2010+7.5%
Q4 2009+7.5%

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