Autoliv Q2 Results Miss Estimates, Cuts 2021 Outlook

Autoliv Inc ALV reported second-quarter sales growth of 93% year-on-year to $2.02 billion, missing the analyst consensus of $2.12 billion.
Lower than anticipated LVP and the material changes in customer call offs with short notice, negatively impacted quarterly sales and profitability.
Adjusted operating margin for the quarter was 8.2%. Adjusted operating income was $166 million, versus a loss of $(172) million last year.
Operating cash flow totaled $63 million for the quarter.
Adjusted return on capital employed was 17.8%.
Adjusted EPS of $1.20 missed the analyst consensus of $1.43.
Outlook: Autoliv now sees FY21 net sales growth in the range of 20% - 22%, versus the prior outlook of 23% growth. It now sees organic sales growth of 16%-18%, down from the prior 20% growth forecast.
The company expects an adjusted operating margin of 9%-9.5%, down from the previously expected 10%.
It still expects supply disruptions to impact LVP negatively in the third quarter with some improvement in the fourth quarter.
Price action: ALV shares are trading lower by 5.56% at $89.70 during the premarket session Friday.

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