Autoliv: Financial Report October - December 2024
Autoliv (NYSE: ALV) reported Q4 2024 financial results with record operating performance despite sales challenges. Net sales decreased 4.9% to $2,616 million, with organic sales declining 3.3%. The company achieved record operating profit of $353 million and a record operating margin of 13.5%.
Key highlights include a 14% increase in diluted EPS to $3.10, while adjusted diluted EPS decreased 19% to $3.05. Operating cash flow reached $420 million, contributing to a record full-year cash flow of $1,059 million. The company reduced total headcount by around 7% and successfully executed cost reductions and commercial recoveries.
For 2025, Autoliv guides for around 2% organic sales growth, approximately 2% negative FX effect on net sales, adjusted operating margin of around 10-10.5%, and operating cash flow of about $1.2 billion.
Autoliv (NYSE: ALV) ha riportato i risultati finanziari del quarto trimestre 2024 con performance operativa record nonostante le sfide di vendita. Le vendite nette sono diminuite del 4,9% a 2.616 milioni di dollari, con un calo delle vendite organiche del 3,3%. L'azienda ha raggiunto un profitto operativo record di 353 milioni di dollari e un margine operativo record del 13,5%.
Tra i punti salienti ci sono un incremento del 14% dell'utile per azione diluito a 3,10 dollari, mentre l'utile per azione diluito rettificato è diminuito del 19% a 3,05 dollari. Il flusso di cassa operativo ha raggiunto i 420 milioni di dollari, contribuendo a un flusso di cassa record per l'intero anno di 1.059 milioni di dollari. L'azienda ha ridotto il numero totale di dipendenti di circa il 7% e ha eseguito con successo riduzioni dei costi e recuperi commerciali.
Per il 2025, Autoliv prevede una crescita delle vendite organiche di circa il 2%, un effetto negativo sui cambi di circa il 2% sulle vendite nette, un margine operativo rettificato di circa il 10-10,5% e un flusso di cassa operativo di circa 1,2 miliardi di dollari.
Autoliv (NYSE: ALV) reportó los resultados financieros del cuarto trimestre de 2024 con un rendimiento operativo récord a pesar de los desafíos en las ventas. Las ventas netas disminuyeron un 4,9% a 2,616 millones de dólares, con una caída en las ventas orgánicas del 3,3%. La empresa logró un beneficio operativo récord de 353 millones de dólares y un margen operativo récord del 13,5%.
Entre los puntos destacados se incluye un aumento del 14% en el EPS diluido a 3,10 dólares, mientras que el EPS diluido ajustado disminuyó un 19% a 3,05 dólares. El flujo de caja operativo alcanzó los 420 millones de dólares, contribuyendo a un flujo de caja récord para todo el año de 1,059 millones de dólares. La empresa redujo su plantilla total en aproximadamente un 7% y ejecutó con éxito reducciones de costos y recuperaciones comerciales.
Para 2025, Autoliv espera un crecimiento de las ventas orgánicas de alrededor del 2%, aproximadamente un 2% de efecto negativo por tipo de cambio en las ventas netas, un margen operativo ajustado de aproximadamente 10-10,5% y un flujo de caja operativo de alrededor de 1,2 mil millones de dólares.
오톨리브 (NYSE: ALV)는 2024년 4분기 재무 결과를 발표했으며, 판매 도전에도 불구하고 기록적인 운영 성과를 달성했습니다. 순매출은 26억 1,600만 달러로 4.9% 감소했으며, 유기적 매출은 3.3% 감소하였습니다. 회사는 3억 5,300만 달러의 기록적인 운영 이익과 13.5%의 기록적인 운영 마진을 달성했습니다.
주요 하이라이트로는 희석 주당순이익이 14% 증가하여 3.10달러가 되었고, 조정된 희석 주당순이익은 19% 감소하여 3.05달러가 되었습니다. 운영 현금 흐름은 4억 2천만 달러에 도달하여, 전체 연간 현금 흐름은 10억 5천 900만 달러로 기록을 세웠습니다. 회사는 총 직원 수를 약 7% 줄였고, 비용 절감과 상업적 회수를 성공적으로 실행했습니다.
2025년을 위해 오톨리브는 약 2%의 유기적 매출 성장, 순매출에 약 2%의 부정적인 환율 효과, 조정된 운영 마진 약 10-10.5%, 운영 현금 흐름 약 12억 달러를 예상하고 있습니다.
Autoliv (NYSE: ALV) a publié les résultats financiers du quatrième trimestre 2024, affichant une performance opérationnelle record malgré des défis de vente. Les ventes nettes ont diminué de 4,9 % pour atteindre 2 616 millions de dollars, avec une baisse de 3,3 % des ventes organiques. L'entreprise a réalisé un bénéfice opérationnel record de 353 millions de dollars et une marge opérationnelle record de 13,5 %.
Parmi les faits saillants, on note une augmentation de 14 % du bénéfice par action dilué à 3,10 dollars, tandis que le bénéfice par action dilué ajusté a diminué de 19 % à 3,05 dollars. Le flux de trésorerie opérationnel a atteint 420 millions de dollars, contribuant à un flux de trésorerie record pour l'année entière de 1 059 millions de dollars. L'entreprise a réduit son effectif total d'environ 7 % et a réussi à mettre en œuvre des réductions de coûts et des récupérations commerciales.
Pour 2025, Autoliv prévoit une croissance des ventes organiques d'environ 2 %, un effet de change négatif d'environ 2 % sur les ventes nettes, une marge opérationnelle ajustée d'environ 10 à 10,5 % et un flux de trésorerie opérationnel d'environ 1,2 milliard de dollars.
Autoliv (NYSE: ALV) hat die Finanzzahlen für das vierte Quartal 2024 veröffentlicht, mit einer Rekordbetriebsleistung trotz Verkaufsherausforderungen. Der Nettoumsatz ging um 4,9% auf 2.616 Millionen Dollar zurück, wobei der organische Umsatz um 3,3% sank. Das Unternehmen erreichte einen Rekordbetriebsergebnis von 353 Millionen Dollar und eine Rekordbetriebsgewinnmarge von 13,5%.
Wichtige Highlights sind ein Anstieg des verwässerten EPS um 14% auf 3,10 Dollar, während das bereinigte verwässerte EPS um 19% auf 3,05 Dollar fiel. Der operative Cashflow erreichte 420 Millionen Dollar und trug zu einem Rekord-Cashflow für das Gesamtjahr von 1.059 Millionen Dollar bei. Das Unternehmen reduzierte die Gesamtzahl der Mitarbeiter um etwa 7% und führte erfolgreich Kostenreduzierungen und kommerzielle Wiederherstellungen durch.
Für 2025 gibt Autoliv eine organische Umsatzwachstumsprognose von etwa 2%, einen ungefähen negativen Währungseffekt von etwa 2% auf den Nettoumsatz und eine bereinigte Betriebsgewinnmarge von etwa 10-10,5% sowie einen operativen Cashflow von etwa 1,2 Milliarden Dollar an.
- Record operating profit of $353 million and margin of 13.5%
- Operating cash flow reached record $1,059 million for FY2024
- Successful cost reduction program with 7% headcount reduction
- Strong 20% sales growth to domestic Chinese OEMs
- Return on capital employed increased to 35.8%
- Net sales decreased 4.9% to $2,616 million
- Organic sales declined 3.3%, underperforming global LVP by 3.7pp
- Adjusted diluted EPS decreased 19% to $3.05
- Underperformance in China due to negative LVP mix
- Dealer inventory reductions impacted performance in Americas
Insights
Autoliv's Q4 2024 results reveal a compelling narrative of operational excellence amid market headwinds. The 13.5% operating margin represents a significant achievement, particularly considering the 3.3% organic sales decline. This divergence between revenue and profitability metrics underscores the effectiveness of management's cost optimization initiatives.
The company's performance in China warrants special attention. While experiencing a 20% growth with domestic OEMs, overall underperformance in the region due to product mix suggests a strategic challenge. However, the anticipated record number of new launches in 2025 could be a catalyst for improved market position.
The cost reduction strategy has been particularly impressive, with indirect workforce reduction of 1,400 positions since Q1 2023 and a 9% reduction in direct headcount. This disciplined approach to cost management, combined with successful inflation recovery negotiations, has created a robust foundation for sustained profitability.
The strong cash flow performance, culminating in a record $1.059B for FY2024, provides significant financial flexibility. With a leverage ratio of 1.2x, the company maintains ample capacity for both strategic investments and shareholder returns through dividends and share repurchases.
Looking ahead to 2025, the guided 2% organic growth reflects a cautious outlook amid industry challenges. However, the projected 10-10.5% adjusted operating margin suggests confidence in maintaining operational efficiency gains. The upcoming Capital Markets Day in June 2025 will be important for understanding the company's long-term strategic positioning in an evolving automotive safety market.
Q4 2024: Record operating profit, margin and EPS
Financial highlights Q4 2024
Full year 2025 guidance
Around
Around
Around 10
Around
All change figures in this release compared to the same period of the previous year except when stated otherwise.
Key business developments in the fourth quarter of 2024
- Fourth quarter sales decreased organically* by
3.3% , which was 3.7pp below the global LVP increase of0.4% (S&P Global Jan 2025). Regional and customer LVP mix is estimated to have contributed to about 4pp underperformance. We outperformed inAsia excl.China and inEurope , mainly due to product launches and positive pricing. Our sales to domestic Chinese OEMs grew by20% , almost in line with their growth in LVP. Due to negative LVP mix inChina , as sales of lower safety content models grew strongly while higher content models declined, we still underperformed inChina . We expect that our strong order intake with domestic OEMs will lead to a record number of new launches inChina and thereby significantly improve Autoliv's performance inChina in 2025. Dealer inventory reductions by major customers resulted in underperformance inAmericas . - Profitability improved, with several new record highs mainly due to successful execution of cost reductions and commercial recoveries. Total headcount decreased by around
7% . Operating income reached a new record high of$353 million 13.5% . Adjusted operating income* was also a record at$349 million 13.4% . Return on capital employed was35.8% and adjusted return on capital employed* was35.2% . - Operating cash flow was
$420 million $1,059 million $288 million $297 million $0.70
*For non-
Key Figures
(Dollars in millions, except per share data) | Q4 2024 | Q4 2023 | Change | FY 2024 | FY 2023 | Change |
Net sales | (4.9) % | (0.8) % | ||||
Operating income | 353 | 237 | 49 % | 979 | 690 | 42 % |
Adjusted operating income1) | 349 | 334 | 4.7 % | 1,007 | 920 | 9.5 % |
Operating margin | 13.5 % | 8.6 % | 4.9pp | 9.4 % | 6.6 % | 2.8pp |
Adjusted operating margin1) | 13.4 % | 12.1 % | 1.2pp | 9.7 % | 8.8 % | 0.9pp |
Earnings per share - diluted | 3.10 | 2.71 | 14 % | 8.04 | 5.72 | 40 % |
Adjusted earnings per share - diluted1) | 3.05 | 3.74 | (19) % | 8.32 | 8.19 | 1.6 % |
Operating cash flow | 420 | 447 | (6.0) % | 1,059 | 982 | 7.8 % |
Return on capital employed2) | 35.8 % | 24.4 % | 11pp | 25.0 % | 17.7 % | 7.2pp |
Adjusted return on capital employed1,2) | 35.2 % | 32.9 % | 2.3pp | 25.6 % | 23.1 % | 2.5pp |
1) Excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. Non-
2) Annualized operating income and income from equity method investments, relative to average capital employed.
Comments from Mikael Bratt, President & CEO
I am pleased that we delivered strong profitability and cash flow in the fourth quarter. We reached new record highs in the quarter for operating profit, operating margin and EPS. For the full year, we also had a record high operating cash flow. I am also pleased that we generated a high return on capital employed for the quarter and year and that we could achieve this strong performance despite a continued LVP mix deterioration leading to lower sales.
Our strong performance for both the quarter and the full year was mainly a result of our strict cost control. Our structural cost reduction program has enabled a reduction of the indirect work force by 1,400 since Q1 2023. We accelerated our operating efficiency improvements, supported by an improved customer call-off accuracy, which contributed to a reduction of direct headcount by
As LVP growth mix continued to be tilted towards lower CPV models, we underperformed the LVP growth in
We achieved several strategic major wins with new automakers in 2024 although OEMs' sourcing of new business was at a low level in 2024. This was due to technological and geopolitical uncertainties and the sourcing of several large platforms were pushed into 2025.
We expect 2025 to be a challenging year for the automotive industry with LVP declining slightly and continued geopolitical risks. This uncertainty makes it challenging to predict how business conditions in general and automotive markets in particular will develop in 2025. However, our continued focus on efficiency is expected to support further improvement of our profitability towards our mid-term financial targets. Our continued strong cash flow and balance sheet should set a solid foundation for our ongoing commitment to high shareholder returns.
I am looking forward to our Capital Markets Day, planned for June 3, 2025, when we will share our view of our way forward with you. More details to be announced shortly.
Inquiries: Investors and Analysts
Anders Trapp
Vice President Investor Relations
Tel +46 (0)8 5872 0671
Henrik Kaar
Director Investor Relations
Tel +46 (0)8 5872 0614
Inquiries: Media
Gabriella Etemad
Senior Vice President Communications
Tel +46 (0)70 612 6424
Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on January 31, 2025.
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SOURCE Autoliv
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