Autoliv Q3 Earnings Miss Estimates; Cuts FY21 Outlook

Autoliv Inc ALV reported a third-quarter FY21 sales decline of 9.3% year-on-year, to $1.85 billion, missing the analyst consensus of $1.92 billion.
Organic sales declined 12% as global LVP declined by 20%. Higher raw material costs and lower sales negatively impacted profit.
The adjusted operating margin for the quarter contracted 450 basis points to 5.6%. Adjusted operating income was $103 million, a 49.7% decline Y/Y.
Operating cash flow totaled $188 million, and the free cash flow was $77 million. Return on capital employed contracted 820 basis points Y/Y to 10.5%.
Adjusted EPS of $0.73 missed the analyst consensus of $0.86.
"We expect supply disruptions to continue to impact LVP negatively in the fourth quarter, and although there are some indications of moderate improvement in semiconductor availability in Asia and North America, visibility remains poor," said CEO Mikael Bratt.
Outlook: Autoliv now sees FY21 net sales growth of 11% (previous outlook 20% - 22% growth). It now sees organic sales growth of 8% (previous 16% - 18%).
The company expects an adjusted operating margin of 8% (previously expected 9% - 9.5%).
Price action: ALV shares are trading higher by 3.69% at $98.79 during Friday's premarket session.

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