Autoliv has reported second-quarter consolidated sales of US$2.55bn, while organic sales increased 0.2%.
The expectation at the beginning of the quarter was for quarterly organic sales to increase by “around 2%” and an adjusted operating margin of “around 8.5%.”
The lower than expected organic sales growth reflects customer call-offs due to less light vehicle production in China and North America.
For the third quarter of 2017, the supplier expects organic sales to increase in the range of 0%-2% and an adjusted operating margin in the 7.5%-8% range.
Indication for the full year remains unchanged for adjusted operating margin at around 8.5% and consolidated sales growth at 3%, while Autoliv now expects organic sales growth of 2%.
“I am pleased we continue to execute well in Passive Safety and proactive adjustments to a weaker market in China and North America helped the segment generate another quarter of double digit operating margin, despite continued elevated investments for growth,” said Autoliv chairman, president and CEO, Jan Carlson.
“We managed another quarter with good operating efficiency and our strong gross margin performance enabled us to meet our adjusted operating margin expectation, although organic sales growth was slightly below our expectation due to lower light vehicle production in China and North America. Order intake continued on a high level in Passive Safety in the quarter.
“We accelerated our efforts to strengthen our foundation in Electronics to capture growth opportunities through the strategic agreements we announced in June and July.
“The agreements with NVIDIA and Velodyne further improve our capabilities in developing next generation self-driving technologies by accessing NVIDIA’s AI car computing platform and Velodyne’s LiDAR sensing technology while our investment in Autotech provides effective scouting of new technologies in autonomous driving.
“Electronics booked a handful of smaller orders in Active Safety in the quarter, including one new customer and one vision order.”