(Información remitida por la empresa firmante)
STOCKHOLM, April 21, 2023 /PRNewswire/ -- (NYSE: ALV) and (SSE: ALIV.sdb)
Q1 2023: Strong sales growth
Financial highlights Q1 2023$2,493 millionnet sales 17% net sales increase21% organic sales increase*5.1% operating margin5.3% adjusted operating margin*$0.86EPS - 9% decrease$0.90adjusted EPS* - 99% increase
Full year 2023 indicationsAround 15% organic sales growthAround 1% negative FX effect on net salesAround 8.5%-9.0% adjusted operating marginAround $900 million operating cash flow
Key business developments in the first quarter of 2023
- Sales increased organically* by 21%, which was 15pp better than global LVP growth of 6.1% (S&P Global April 2023). We outperformed significantly in all regions, mainly due to new product launches and higher prices.
- Profitability in line with our indication, positively impacted by price increases, organic growth and our cost reduction activities. Operating income was $127 million and operating margin was 5.1%. Adjusted operating income* improved from $68 million to $131 million and adjusted operating margin* increased from 3.2% to 5.3%, despite inflationary pressure, volatile LVP and adverse FX effects. Return on capital employed was 13.0% and adjusted return on capital employed* was 13.4%.
- Operating cash flow decreased from $70 million to negative $46 million, driven mainly by negative working capital effects due to the high sales growth. Free cash flow* decreased to negative $189 million, as capex, net, increased due to capacity expansions and footprint activities. The leverage ratio* increased from 1.4x in the fourth quarter 2022 to 1.6x, impacted by higher net debt. A dividend of $0.66 per share was paid, and 0.45 million shares were repurchased and retired in the quarter.
*For non-U.S. GAAP measures see enclosed reconciliation tables.
Comments from Mikael Bratt, President & CEOI am pleased with our strong sales growth, supported by product launches and price increases, and that we outperformed LVP in all regions significantly. The operating margin impact of the strong sales growth was lower than it should be in the quarter. This is because new product launches normally have lower operating leverage initially. As production ramps up and stabilizes, operating leverage is expected to improve. Together with our actions for cost reductions and price adjustments, this will give the significant full year profit improvement that we expect.The operating environment in the first quarter 2023 was, as expected, challenging, especially in Europe. We reported an adjusted operating margin in line with prior communication.Other highlights in the quarter were that our balance sheet and expected cash flow allowed for continued high shareholder returns, and that we issued our first ever green bond. We expect a strong full year cash flow, although our cash flow was temporarily weak in Q1 due to the strong sales growth in March.We saw continued updates of crash test standards and safety regulations in the U.S. and in India which will support continued increase in safety content per vehicle. Our market position is strong, and we are investing for increased production with a new textile facility in Vietnam. We also continue to look for ways to improve our footprint and to reduce our costs structurally. The year has so far developed as expected. Like last year, inflationary pressure impacted the first quarter significantly, and in line with last year, we expect to offset this during the rest of the year through productivity, cost reduction actions and price adjustments. This supports my confidence in expecting a gradually improving adjusted operating margin, which should allow us to deliver a significant full year increase in cash flow and adjusted operating income and to reach the full year indications we set at the beginning of the year.Inquiries: Investors and AnalystsAnders TrappVice President Investor RelationsTel +46 (0)8 5872 0671 Henrik KaarDirector Investor RelationsTel +46 (0)8 5872 0614 Inquiries: MediaGabriella EkelundSenior Vice President CommunicationsTel +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 April 21, 2023.
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