At its Investor Day, Autoliv has reiterated its full-year 2023 results projections, including organic sales growth of around 15% and an adjusted operating margin of around 8.5-9.0%.
Autoliv also said it reiterates its medium- and long-term financial targets. The company says it has – over the last two years – ‘taken forceful actions to respond to a prolonged market environment of inflationary pressure, continued supply chain challenges, and lower and more volatile light vehicle production’.
“We are optimizing our operations for a more effective and cost-efficient structure to best serve our customers and to build an even more competitive position,” said Mikael Bratt, President, and CEO of Autoliv. “At the Investor Day, we will outline how continued changes in safety regulations and ratings drive development of new products supporting continued growth in safety content per vehicle. Combined with our strong global market positions, this will drive our sales and profit growth for many years to come. We will also demonstrate how we will take operational excellence to the next level, which will support our journey towards our financial targets and continued shareholder value creation,” Bratt said.
For the years 2022-2024, Autoliv expects to grow organically by around 4 percentage points more than light vehicle production (LVP) growth per year, on average. The growth trend is on track to significantly exceed LVP +4pp per year for the period, partly due to price increases to offset recent years high-cost inflation. The company estimates that, also when adjusting for these price increases, it will meet or exceed the growth target for the period 2022-2024.
Autoliv also reiterates its long-term growth target beyond 2024, where it aims to grow sales organically by 4-6% per year, over time. This is based on growth coming from safety content per vehicle, LVP and from Mobility Safety Solutions.
Profitability
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By GlobalDataAutoliv reiterates its medium-term target of a 12% adjusted operating margin. This, the company said, relies on the continued implementation of ‘structural and strategic initiatives, including automation, digitalization and footprint optimization, together with the conditions that the business environment is a stable global LVP of at least 85 million and that headwinds from inflation do not have a greater net negative impact on our operating margin than they had in 2021 (offset through price compensations or declining raw material prices)’.
The current stock repurchase program authorizes the company to repurchase up to $1.5 billion or up to 17 million common shares (whichever comes first), between January 2022 and the end of 2024. Under the program Autoliv has currently repurchased 2.3 million shares for a total of $194 million.
