In This Article:
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Net Sales: $2.6 billion, a 1% decrease year over year.
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Adjusted Operating Income: Increased by 28% to $255 million from $199 million last year.
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Adjusted Operating Margin: 9.9%, an improvement of 230 basis points from the previous year.
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Gross Margin: 18.6%, an increase of 160 basis points year over year.
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Adjusted Earnings Per Share (EPS) Diluted: Increased by $0.58, driven by higher operating income and a lower number of shares.
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Return on Capital Employed: 26%.
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Return on Equity: 29%.
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Share Buybacks: Repurchased and retired 500,000 shares for $50 million.
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Dividend: $0.70 per share.
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Operating Cash Flow: $77 million, a decrease of $45 million from the previous year.
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Free Operating Cash Flow: Negative $16 million, compared to negative $18 million in the prior year.
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Trade Working Capital: Decreased by $56 million, with improvements in accounts receivables, payables, and inventories.
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Leverage Ratio: 1.3 times, virtually flat year over year.
Release Date: April 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Autoliv Inc (NYSE:ALV) outperformed global light vehicle production despite significant headwinds, particularly in China.
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The company achieved record earnings per share for the first quarter, driven by a lower number of shares and high net profit.
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Autoliv Inc (NYSE:ALV) significantly improved its profit and operating margin compared to the previous year, primarily due to well-executed cost reduction activities.
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The company neutralized tariffs almost entirely in the quarter through agreements with customers.
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Autoliv Inc (NYSE:ALV) continues to generate a high level of return on capital employed, supporting a high level of shareholder returns.
Negative Points
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Sales in the first quarter decreased by 1% year over year due to negative effects from currency and adverse regional and customer mix development.
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The company faces significant uncertainty in the global light vehicle production outlook for 2025, influenced by tariffs and slowing economic growth.
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Autoliv Inc (NYSE:ALV) experienced an unfavorable regional light vehicle production mix, significantly impacting its outperformance negatively.
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Operating cash flow decreased by $45 million compared to the same period last year, mainly due to increased receivables.
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The company anticipates cost pressures from labor, especially in Europe and America, and potential inflationary pressure from ongoing tariff situations.
Q & A Highlights
Q: Can you provide clarity on how much of your sales are non-USMCA compliant and at risk? A: Mikael Bratt, CEO, explained that the situation is fluid, and providing too much detail might be confusing. The company is well-positioned with its current footprint, and most of the production in Mexico is for OEMs in Mexico. The non-compliance is mainly due to the unavailability of certain materials in the region, like leather and magnesium. The majority of the tariff costs are passed on to customers.