Autoliv Gains Post Q4 Bottom-Line Beat; Clocks 10% Sales Growth

Autoliv Inc ALV reported fourth-quarter FY22 sales growth of 10% year-on-year to $2.33 billion, missing the consensus of $2.44 billion.
Adjusted operating margin for the quarter was 10% versus 8.3% last year. Adjusted operating income increased 31% to $233 million.
Return on capital employed expanded to 24.3%, and the adjusted return on capital employed was 24.9%.
Gross profit for the quarter increased 8.3% Y/Y to $399 million with a gross margin of 17.1%.
"In 2022, we faced the worst cost inflation seen in three decades, which initially significantly impacted our profitability," said CEO Mikael Bratt.
"Through aggressive price adjustments, we managed to gradually offset this raw material cost inflation and profitability was restored towards the end of the year."
Adjusted EPS of $1.83 beat the analyst consensus of $1.76.
Operating cash flow totaled $462 million for the quarter. The company held cash and equivalents of $594 million at the end of the fourth quarter.
Net debt as of Dec. 31, 2022, amounted to $1.18 billion.
Outlook: Autoliv sees FY23 organic sales growth of around 15%.
The company expects an adjusted operating margin of around 8.5%-9%.
ALV sees around $900 million in operating cash flow.
Price Action: ALV shares are trading higher by 4.82% at $89.02 during the pre-market session on Friday.

Earnings Calendar