Autoliv Shares Slide On Q1 Miss, FY22 Outlook Cut

Autoliv Inc ALV reported a first-quarter FY22 sales decline of 5.3% year-on-year to $2.12 billion, missing the consensus of $2.18 billion.
Adjusted operating margin for the quarter was 3.2% versus 10.6% last year. Adjusted operating income decreased 71% to $68 million.
Return on capital employed declined to 14.6%, and the adjusted return on capital employed was 7.4%.
"The first quarter of 2022 saw adverse impacts on an already distressed global supply chain, leading to increased cost inflation as well as lower global LVP," said CEO Mikael Bratt.
Adjusted EPS of $0.45 missed the analyst consensus of $1.11.
Operating cash flow totaled $70 million for the quarter. The company held cash and equivalents of $938 million at the end of the first quarter. The net debt amounted to $1.1 billion.
Outlook: Autoliv sees FY22 organic sales growth of around 12-17%, down from the previous view of 20% growth.
The company expects an adjusted operating margin of 5.5%-7% (prior view 9.5%).
It sees around $750 million - $850 million in operating cash flow (previous view $950 million).
Price Action: ALV shares are trading lower by 7.44% at $71.79 during the pre-market session on Friday.

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