Autoliv Q3 Earnings Miss Estimates

Autoliv Inc ALV reported third-quarter FY22 sales growth of 25% year-on-year to $2.30 billion, missing the consensus of $2.35 billion.
Adjusted operating margin for the quarter was 7.5% versus 5.6% last year. Adjusted operating income increased 67% to $173 million.
Return on capital employed expanded to 18%, and the adjusted return on capital employed was 18.4%.
Gross profit for the quarter increased 28% Y/Y to $383 million with a gross margin of 16.6%.
"Our actions initiated earlier in the year are now delivering results, especially our price adjustments to compensate for the inflationary pressures and our cost reduction activities," said CEO Mikael Bratt.
Adjusted EPS of $1.23 missed the analyst consensus of $1.27.
Operating cash flow totaled $232 million for the quarter. The company held cash and equivalents of $483 million at the end of the third quarter. The net debt amounted to $1.3 billion.
Outlook: Autoliv sees FY22 organic sales growth of around 15% (previously 13% - 16%).
The company expects an adjusted operating margin in the upper end of 6%-7%.
It sees around $700 million - $750 million in operating cash flow.
Price Action: ALV shares are trading higher by 3.49% at $76.24 during the pre-market session on Friday.

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