Autoliv has reported higher-than-expected Q2 profits, thanks to product launches and price increases
Its consolidated net sales increased to $2.6 billion, which CEO Mikael Bratt called a “record” for Q2. It was 27% higher than a year earlier, driven by price, volume and mix.
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Bratt also highlighted recent Autoliv innovations, such as the Bernoulli airbag, which was presented at its Investor Day in June. It is expected to be commercialised in Q3. The airbag is capable of inflating to a larger size more efficiently, the company claims.
Auto suppliers have been hit hard by inflationary pressures, but Autoliv said it lowered its cost base and successfully negotiated price increases with its customers.
Autoliv said that for Q2 2023 key model lines included nine vehicle models, including the Mercedes E-Class, VW ID.7, and Ford Mustang.
Each has a content per vehicle varying from around $150 to close to $400, and the models reflect the changes seen in the auto industry in recent year, Bratt said.
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By GlobalDataThe Mercedes E-Class launch was “the most significant” in terms of Autoliv sales potential, he added. By region, Autoliv is seeing a higher number of launches in China, South Korea and Europe.
In June, Autoliv said it would cut 8,000 jobs to speed up cost savings (around 6,000 direct jobs, and up to 2,000 indirect jobs).
During the Q2 results call, Mr. Bratt confirmed Autoliv was “accelerating” its structural reduction, including a “substantial” reduction of its global workforce with a particular focus on European operations. “The headcount reduction will affect people based in our offices, technical centres, and plants, including leadership positions at all levels,” he said.
As a first step, the company has accrued $109 million, which is driven by the planned reduction of around 1,100 employees. This first step is expected to reduce costs by approximately $25 million in 2023, increasing to around $55 million in 2025.
Autoliv expects global full-year 2023 light vehicle production (LVP) to increase by 5.1% to close to 84 million vehicles. Bratt said production in Europe continues to “outperform expectations” but noted that 2023 volumes are attributable to inventory restocking and reduction of OEM sales backlogs.
Its full-year indication is based on light production vehicle growth assumption of around 4%. Autolive says sales are expected to increase organically by around 15% this year.
