Autoliv Reiterates Overall Guidance Ahead Of Investor Day, Launches New Passenger Airbag

Autoliv Inc ALV reiterated its 2023 and medium and long-term outlook before the investor day today.

For 2023, the company reiterated its guidance for organic sales growth of around 15% and an adjusted operating margin of about 8.5%-9.0%.

For 2022-2024, ALV continues to expect to grow organically by around 4% more than the light vehicle production (LVP) average growth yearly. 

Also, Autoliv reiterated its medium-term target of a 12% adjusted operating margin, with expected continued implementation of its structural and strategic initiatives, conditioned upon a stable global LVP business environment (at least 85 million) and lower impact of inflation-related headwinds.

Beyond 2024, Autoliv reaffirmed long-term growth at organic sales growth of 4%-6% per year. 

Repurchase: The company plans to continue with its repurchase program, with the current program authorizing the repurchase of up to $1.5 billion or up to 17 million common shares (whichever comes first), between January 2022 and the end of 2024.

Under the program, Autoliv has repurchased 2.3 million shares worth $194 million.

"At the Investor Day, we will outline how continued changes in safety regulations and ratings drive development of new products supporting continued growth in safety content per vehicle. Combined with our strong global market positions, this will drive our sales and profit growth for many years to come. We will also demonstrate how we will take operational excellence to the next level, which will support our journey towards our financial targets and continued shareholder value creation," said Mikael Bratt, President, and CEO. 

Apart from this, Autoliv also launched a patented new passenger airbag module (based on Bernoulli's Principle) which can efficiently inflate larger airbags and decrease development time and cost; expected to be commercialized in Q3. 

Price Action: ALV shares closed lower by 1.15% at $87.55 on Friday.