STOCKHOLM,Oct. 18, 2024/PRNewswire/ -- (NYSE: ALV) (SSE: ALIV.sdb)
Q3 2024: Solid sales outperformance
Financial highlights Q3 2024
$2,555millionnet sales
1.6%net sales decrease
0.8%organic sales decline*
8.9%operating margin
9.3%adjusted operating margin*
$1.74diluted EPS, 11% increase
$1.84adjusted diluted EPS*, 11% increase
Full year 2024 guidance
Around 1%organic sales growth
Around 1%negativeFX effect on net sales
Around 9.5-10.0%adjusted operating margin
Around$1.1 billionoperating cash flow
All change figures in this release compare to the same period of the previous year except when stated otherwise.
Key business developments in the third quarter of 2024
*For non-U.S. GAAP measures see enclosed reconciliation tables.
Key Figures
(Dollars in millions, except per share data) | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
Net sales | $2,555 | $2,596 | (1.6) % | $7,774 | $7,724 | 0.7 % |
Operating income | 226 | 232 | (2.4) % | 626 | 453 | 38 % |
Adjusted operating income1) | 237 | 243 | (2.3) % | 657 | 586 | 12 % |
Operating margin | 8.9 % | 8.9 % | (0.1)pp | 8.1 % | 5.9 % | 2.2pp |
Adjusted operating margin1) | 9.3 % | 9.4 % | (0.1)pp | 8.5 % | 7.6 % | 0.9pp |
Earnings per share - diluted | 1.74 | 1.57 | 11 % | 4.98 | 3.04 | 64 % |
Adjusted earnings per share - diluted1) | 1.84 | 1.66 | 11 % | 5.30 | 4.48 | 18 % |
Operating cash flow | 177 | 202 | (12) % | 639 | 535 | 19 % |
Return on capital employed2) | 22.9 % | 24.2 % | (1.3)pp | 21.2 % | 15.6 % | 5.6pp |
Adjusted return on capital employed1,2) | 23.9 % | 24.5 % | (0.7)pp | 22.1 % | 19.8 % | 2.3pp |
1) Excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. Non-U.S. GAAP measure, see reconciliation table. |
Comments from Mikael Bratt, President& CEO
Light vehicle production was weak in the third quarter, declining by close to 5% globally. This was driven by a combination of inventory reductions, especially in the Americas and a high comparison base, especially inChina. In this tough environment, Autoliv managed to outgrow LVP by 4pp, enabling almost unchanged sales and operating income. This is despite a$14 millioncost item related to a supplier settlement.
We were able to achieve these results mainly due to our cost control, including a continued reduction of our indirect workforce. We accelerated our efficiency improvements, contributing to a reduction of direct headcount by 3,100 compared to a year earlier, which is a reduction of 6%.
I am pleased that we outgrew LVP on a global basis following substantial outperformance inEuropeandAsiaexcl.China. Our sales underperformed LVP inChinadue to a substantial negative market mix, however, our position with Chinese OEMs continues to improve.
Based on sales trends and order intake in recent years, we expect further market share gains with domestic Chinese OEMs in the coming years.
Excess inflation compensation negotiations with our customers have developed in line with our expectations with a few negotiations still outstanding.
With the seasonally strong fourth quarter remaining of the year, we reaffirm our guidance of around 9.5-10.0% adjusted operating margin for 2024. We expect to be at the low end of this range, as we now expect full year 2024 organic growth to be 1% instead of previously expected 2% due to the unfavorable market mix development.
Our operating cash flow is on track towards the full year guidance of$1.1 billionand our balance sheet remains strong with a debt leverage of 1.4x, which supports our continued commitment to a high level of shareholder returns and our financial targets.
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 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 onOctober 18, 2024.
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SOURCE Autoliv