UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------------------|------------------------------------------| | | | | For the transition period from _________ | to _________ | | Co ...

By their very nature, consumer stocks are the bane of risk-averse investors. High inflationary environments and tight budgets can heavily impact consumer discretionary companies, leading to performance slumps and higher downside risks. S&P’s Global Market Intelligence found that consumer discretionary remained the highest-risk sector at the tail end of 2023, and companies belonging to the sector were some of the most shorted stocks in the market. However, not all consumer discretionary stocks are made equal ...

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA STOCKHOLM, Feb. 1, 2024 /PRNewswire/ -- Autoliv, Inc. (NYSE: ALV) and (SSE: ALIV.sdb), today announced that it has priced a 5.5-year bond offering of EUR 500 million in the Eurobond market (the "Notes"). The Notes are due to be issued on February 7 and will carry a coupon of 3.625%. The Notes are expected to be admitted to trading on the Global Exchange Market (GEM) of the Irish Stock Exchange (Euron ...

Autoliv Inc. (ALV) reported fourth-quarter 2023 adjusted earnings of $3.74 per share, surpassing the Zacks Consensus Estimate of $3.25 and rising 105% year over year. The company reported net sales of $2,751 million in the quarter, which topped the Zacks Consensus Estimate of $2,746 million and soared 18% year over year.Organic sales rose 16% year over year and breezed past our estimate of 10.6% due to product launches and higher prices. Autoliv reported an adjusted operating income of $334 million, increas ...

Financial Performance - Autoliv achieved record sales of $2.751 billion and gross profit of $530 million in Q4 2023, with a gross margin of 19.3%[32] - The adjusted operating income for Q4 2023 was $334 million, representing 12.1% of sales[32] - For the full year 2023, sales reached $10.475 billion with a gross profit of $1.822 billion, resulting in a gross margin of 17.4%[36] - The adjusted operating income for FY2023 was $920 million, or 8.8% of sales[36] - Operating cash flow for FY2023 was $982 million[36] Sales Growth and Market Outperformance - Autoliv's Q4 2023 organic sales growth outperformed global Light Vehicle Production (LVP) by 7 percentage points[24] - Asia accounted for 41% of sales in Q4 2023, with 16% organic growth[21] - Full year 2023 organic sales growth outperformed global LVP by 9 percentage points[26] Cost Reduction and Efficiency - Autoliv is implementing structural cost reduction initiatives, aiming to reduce indirect headcount by up to 2,000 and improve direct labor productivity equivalent to a direct workforce headcount reduction of up to 6,000[18] - The total accrual for capacity alignment in 2023 amounted to $218 million[18] Shareholder Returns - Autoliv repurchased shares for $150 million in Q4 2023, bringing full-year repurchases to 3.7 million shares for $352 million[4] - The dividend was increased by approximately 3% to $0.68 per share[4] - The company has returned approximately $1.4 billion to shareholders over the last 5 years[46] 2024 Outlook - Autoliv anticipates a mid-single-digit sales growth for FY2024, despite a modest decline of around 1% in LVP[4, 52, 62] - The company is advancing towards its adjusted operating margin target of around 10.5% for FY2024[4, 62] - Autoliv expects operating cash flow of around $1.2 billion for FY2024[62]

Financial Data and Key Metrics - Organic sales grew by 16% in Q4 2023, significantly outperforming light vehicle production, especially in Rest of Asia and Japan [6] - Adjusted operating income increased by more than 40% to $334 million in Q4 2023, with an adjusted operating margin of 12.1%, up by over 2 percentage points YoY [11][12] - Operating cash flow was $447 million in Q4 2023, slightly lower than the same period last year due to timing effects of customer recovery [12] - Full-year 2023 net sales reached $10.5 billion, with organic sales growth of over 18%, twice the increase in underlying light vehicle production [21] - Adjusted operating income for 2023 increased by 54% to $920 million, with an adjusted operating margin of 8.8% [21] - Full-year operating cash flow was $982 million, a new record for the company [23] Business Line Data and Key Metrics - Order intake in 2023 was the highest in the past five years, with around 45% of orders for future electric vehicles [7][8] - Fast-growing Chinese OEMs accounted for around 50% of order intake in China, expected to represent close to 40% of Chinese sales in 2024 [9] - Product launches in 2024 are expected to increase, particularly in China and Europe, driven by strong order intake [9][17] - Global market share in 2023 was around 45%, with 45-47% in airbags, 45% in seatbelts, and 40% in steering wheels [16] Market Data and Key Metrics - Asia accounted for 41% of sales, Americas for 31%, and Europe for 28% in Q4 2023 [14] - Organic sales growth outperformed global light vehicle production by 7 percentage points in Q4 2023, with strong performance in Rest of Asia and Japan [15] - Full-year 2023 sales outperformed global light vehicle production by 9 percentage points, with significant outperformance in Japan (15%), Rest of Asia (14%), and China (8%) [16] - Sales to domestic Chinese OEMs outperformed light vehicle production by 17 percentage points, accounting for 28% of sales in China, up from 22% in 2022 [16] Company Strategy and Industry Competition - The company aims to reduce indirect workforce by up to 2,000, expecting savings of around $50 million in 2024 [6] - Strategic initiatives include automation, digitalization, and cost control, contributing to improved labor efficiency and customer compensations [10][11] - The company expects to achieve an adjusted operating margin of around 12% under stable global light vehicle production conditions [36] - Sustainability is a key focus, with targets to be carbon neutral in operations by 2030 and net zero emissions across the supply chain by 2040 [32][33] Management Commentary on Operating Environment and Future Outlook - Management expects mid-single-digit sales growth in 2024 despite a modest decline in light vehicle production [6] - Adjusted operating margin is expected to improve significantly in 2024, driven by organic sales growth, stable production, and cost control [30] - Inflation, particularly in labor costs, is expected to remain a challenge in 2024, with wage increases in Europe and North America [28] - The Red Sea situation has not yet impacted operations, but potential effects on 2024 remain uncertain [29] Other Important Information - The company repurchased 1.5 million shares for $150 million in Q4 2023, part of a $1.5 billion stock repurchase program [18] - Dividends increased to $0.68 per share in Q4 2023, with total dividends of $2.66 per share paid in 2023 [21] - The company achieved $580 million of its $800 million working capital improvement target, with further improvements expected in receivables and inventory [23][65] Q&A Session Summary Question: Long-term growth target and China headwinds [42] - The company expects to over-deliver on its 4% outperformance target versus light vehicle production in 2024, driven by strong order intake and content per vehicle growth [43] - China's underperformance in Q4 2023 was due to a negative customer mix, but full-year performance was strong, with an 8% outperformance [44] Question: Labor inflation impact [45] - Labor inflation is expected to be mid-single-digit above normal levels, similar to 2023, with additional energy cost increases [46] Question: Share buybacks and inflation compensation [49] - The company remains committed to its buyback program and expects full compensation for inflation by the end of 2024, with a lag in Q1 [50][51][53] Question: Path to 12% adjusted operating margin [55] - The company outlined three key components to reach the 12% target: structural initiatives, volatility improvement, and sales growth, with roughly equal contributions [57] Question: Market share and win rate [58] - The company aims to defend its 45% market share, with growth driven by light vehicle production and content per vehicle, rather than market share expansion [60] Question: Price recoveries and working capital [62] - The company has successfully negotiated price recoveries for inflation, with a focus on labor costs, and expects further working capital improvements in receivables and inventory [63][65] Question: Active Seatbelt sales and labor cost negotiations [67] - The drop in Active Seatbelt sales was due to temporary mix effects, with recovery expected in 2024 [68] - Labor cost negotiations are ongoing, with detailed documentation provided to customers to secure compensation [69] Question: Price negotiations and market outlook [71] - The company remains firm on securing inflation compensation, regardless of OEM profitability or car price reductions [72][74] - The market outlook aligns with S&P Global's projection of a 1% decline in light vehicle production, with no significant discrepancies observed in customer dialogues [76]

Core Insights - Autoliv, Inc. reported revenue of $2.75 billion for the quarter ended December 2023, reflecting a year-over-year increase of 17.8% [1] - The company's EPS was $3.74, significantly higher than the $1.83 reported in the same quarter last year [1] - Autoliv's revenue met the Zacks Consensus Estimate, with a surprise of +0.19%, while the EPS exceeded expectations by +15.08% [1] Revenue Performance - Sales from Airbags, Steering Wheels, and Other products showed an organic change of 16%, surpassing the average estimate of 6.9% from three analysts [2] - Seatbelt Products experienced an organic change of 15%, which was below the average estimate of 22.8% from three analysts [2] - Overall sales by segment had an organic change of 16%, compared to the estimated 11.1% from two analysts [2] Segment Sales Details - Sales for Seatbelt Products reached $887 million, lower than the estimated $977.37 million from three analysts, but still represented a year-over-year increase of 17.6% [2] - Sales for Airbags, Steering Wheels, and Other products amounted to $1.86 billion, exceeding the average estimate of $1.73 billion from three analysts, with a year-over-year change of 17.9% [2] Stock Performance - Autoliv's shares have declined by 6.7% over the past month, contrasting with a 3.1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Autoliv, Inc. (ALV) came out with quarterly earnings of $3.74 per share, beating the Zacks Consensus Estimate of $3.25 per share. This compares to earnings of $1.83 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.08%. A quarter ago, it was expected that this company would post earnings of $1.74 per share when it actually produced earnings of $1.66, delivering a surprise of -4.60%.Over the last four quarters, the company has ...

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 increase16% organic sales growth*8.6% operating margin12.1% adjusted operating margin*$2.71 EPS, 51% increase$3.74 adjusted EPS*, 105% increase Full year 2024 guidance Around 5% organic sales growthAround 0% FX effect on net salesAround 10.5% adjusted operating marginAround $1.2 billion operating cash flow All change fig ...

The upcoming report from Autoliv, Inc. (ALV) is expected to reveal quarterly earnings of $3.20 per share, indicating an increase of 74.9% compared to the year-ago period. Analysts forecast revenues of $2.71 billion, representing an increase of 15.9% year over year.The current level reflects an upward revision of 2.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this peri ...