NYSE$ALV

Autoliv Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Net sales increased slightly, but profitability declined due to higher raw material costs, currency movements, low LVP, and lockdowns in China.

Autoliv reported a slight increase in net sales but faced challenges in profitability due to rising raw material costs, currency fluctuations, low vehicle production, and lockdowns in China. The company's performance was stronger than expected in June due to price increases, LVP recovery, and a patent litigation settlement.

  • Sales increased organically by 8%, outperforming global LVP growth.
  • Profitability declined due to higher raw material costs, currency movements and lockdowns in China.
  • Operating cash flow was negative, impacted by adverse effects from working capital.
  • Progress in customer price discussions, including some retroactive compensations, improved adjusted operating margin.

Headline financials

Total Revenue

$2.08B

Previous: $2.02B+2.9%
EPS (adj)

$0.90

Previous: $1.20-25.0%
Operating margin

6.0%

Previous: 8.1%-25.9%
Adjusted operating margin

6.0%

Previous: 8.2%-26.8%
ROCE

13.1%

No prior period
Capital Expenditures

-$254M

Previous: -$191M-33.0%
Free Cash Flow

-$175M

Previous: -$87M-101.1%
Net Income

$79M

Previous: $104M-24.0%
Operating Income

$124M

Previous: $164M-24.4%
Gross Profit

$326M

Previous: $384M-15.1%
Cash & Equivalents

$327M

Previous: $893M-63.4%
Total Assets

$7.03B

Previous: $7.64B-7.9%

Revenue & EPS history

Autoliv · Revenue · Quarterly

$2.08B

Q2 2022+2.9%vs Q2 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

Autoliv has adjusted its full year 2022 indication to a narrower range, reflecting actions and the shorter time span remaining of the year. The company remains confident in its medium-term adjusted operating margin target of 12%.

Tailwinds

  • Recent developments in supply chains are encouraging.
  • Customer production plans are encouraging.
  • Raw material prices developments are encouraging
  • Cost recovery discussions are encouraging.
  • Company believes it is well prepared for an improved market development.

Headwinds

  • Company is also making sure to be agile and prepared for a more adverse market development should that be necessary.
  • Leverage ratio currently is above target range.
  • Company continues to step up cost control measures.
  • Cost reductions and footprint initiatives are on plan and include capacity alignments and footprint optimizations.
  • Outlook indications for 2022 reflect continuing uncertainty in the automotive markets.

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 Q2 2022

Historical avgQ2 2022

+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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