STOCKHOLM, Jan. 26, 2024 /PRNewswire/ -- (NYSE: ALV) and
(SSE: ALIV.sdb)
Q4 2023: Record sales and strong profitability
Financial highlights Q4 2023
$2,751 million net
sales
18% net sales increase
16% organic sales growth*
8.6% operating margin
12.1% adjusted operating margin*
$2.71 EPS, 51% increase
$3.74 adjusted EPS*, 105%
increase
Full year 2024 guidance
Around 5% organic sales growth
Around 0% FX effect on net sales
Around 10.5% adjusted operating margin
Around $1.2
billion operating cash flow
All change figures in this release compare to the same
period of the previous year except when stated
otherwise.
Key business developments in the fourth quarter of 2023
- Record sales, increased organically* by 16%, which was
7pp better than global LVP growth of 9% (S&P Global
January 2024). We outperformed in all
regions, except China, mainly due
to new product launches and higher prices. LVP in China grew by 31% for domestic OEMs with
typically lower safety content but only by 7% for global OEMs with
typically higher safety content.
- Profitability improved substantially, positively
impacted by price increases, organic growth, and our cost reduction
activities. Operating income was $237
million and operating margin was 8.6%. Adjusted operating
income* improved from $233 million to
$334 million and adjusted operating
margin* increased from 10.0% to 12.1%. Return on capital employed
was 24% and adjusted return on capital employed* was 33%.
- Operating cash flow remained strong, at
$447 million. Free cash flow* was
unchanged at $297 million. The
leverage ratio* improved to 1.2X compared to 1.3X in the third
quarter of 2023, despite returning $207
million to shareholders as dividends and share repurchases.
A dividend of $0.68 per share was
paid (a 3% increase), and 1.51 million shares were repurchased and
retired in the quarter
*For non-U.S. GAAP measures see enclosed reconciliation
tables.
Key Figures
(Dollars in
millions, except per share data)
|
Q4
2023
|
Q4
2022
|
Change
|
FY
2023
|
FY
2022
|
Change
|
Net sales
|
$2,751
|
$2,335
|
18 %
|
$10,475
|
$8,842
|
18 %
|
Operating
income
|
237
|
230
|
3.1 %
|
690
|
659
|
4.7 %
|
Adjusted operating
income1)
|
334
|
233
|
43 %
|
920
|
598
|
54 %
|
Operating
margin
|
8.6 %
|
9.8 %
|
(1.2)pp
|
6.6 %
|
7.5 %
|
(0.9)pp
|
Adjusted operating
margin1)
|
12.1 %
|
10.0 %
|
2.2pp
|
8.8 %
|
6.8 %
|
2.0pp
|
Earnings per
share2)
|
2.71
|
1.80
|
51 %
|
5.72
|
4.85
|
18 %
|
Adjusted earnings per
share1,2)
|
3.74
|
1.83
|
105 %
|
8.19
|
4.40
|
86 %
|
Operating cash
flow
|
$447
|
$462
|
(3.4) %
|
$982
|
$713
|
38 %
|
Return on capital
employed3)
|
24.4 %
|
24.3 %
|
0.1pp
|
17.7 %
|
17.5 %
|
0.2pp
|
Adjusted return on
capital employed1,3)
|
32.9 %
|
24.9 %
|
8.1pp
|
23.1 %
|
16.0 %
|
7.1pp
|
1) Excluding effects
from capacity alignments, antitrust related matters and for FY 2023
the Andrews litigation settlement. Non-U.S. GAAP measure, see
reconciliation table. 2) Assuming dilution when applicable and net
of treasury shares. 3) Annualized operating income and income from
equity method investments, relative to average capital
employed.
|
Comments from Mikael Bratt,
President & CEO
As we indicated throughout the year, we finished 2023 strong. We
achieved or exceeded all of our 2023 indications. Sales and
adjusted operating income hit new records while operating cash flow
remained strong. I am pleased that gross margin improved
substantially. 2023 order intake was the highest in the past five
years, supporting our around 45% market share position, with a good
mix of new and traditional OEMs as well as EV and ICE
platforms.
We increased shareholder returns to more than $200 million in the quarter while continuing to
improve our leverage ratio. As of the end of 2023, we have
repurchased shares close to $0.5
billion under our existing $1.5
billion repurchase program.
We outperformed LVP in all regions except China, which had a very strong LVP growth for
domestic OEMs with typically lower safety content. We strengthened
our market position in China and
our order intake was strong in the rapidly changing market, where
domestic OEMs are now the drivers behind LVP development.
We continue to deliver on our structural cost reductions, with
around 75% of the planned indirect workforce reductions detailed
and announced. We also see positive effects on direct labor
productivity.
Our 2023 performance developed very much as we indicated with heavy
cost headwinds early in the year, which led to a weak Q1 2023.
However, quarter-by-quarter, our performance improved, driven by
customer recoveries, efficiencies, and organic growth leading to a
substantial full year profitability improvement. Our sustainability
agenda is yielding results with good progress in GHG emissions,
renewable electricity use and incident rate.
The seasonality of past years is likely to be repeated in 2024,
with an expected Q1 adjusted operating margin of around 7%,
followed by gradual quarterly improvements, leading to a full year
2024 adjusted operating margin of around 10.5%. Key drivers for the
full year margin progression are continued improvement in call-off
stability, outgrowing LVP and benefits from strategic and
structural initiatives. The improving results we expect in 2024
should take us one important step closer to our target of around
12% adjusted operating margin.
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 26,
2024.
The following files are available for download:
https://mb.cision.com/Main/751/3916250/2565256.pdf
|
The full report
(PDF)
|
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