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 ...

The market expects Autoliv, Inc. (ALV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 26, 2024, might help the stock move higher if these key numbers ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?Dev ...

STOCKHOLM, Jan. 16, 2024 /PRNewswire/ -- Following Euroclear Sweden's termination of its agreement to act as Withholding Agent, Autoliv, Inc. (NYSE: ALV) and (SSE: ALIVsdb) today announces upcoming changes to its Autoliv, Inc. Swedish Depository Receipts (SDRs). The SDRs will receive a new ISIN[1] code as of February 29, 2024, with updated terms and conditions. Skandinaviska Enskilda Banken (SEB) will assume the role as Withholding Agent in its capacity as issuer of Autoliv SDRs. As Euroclear Sweden is no ...

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Autoliv, Inc. (NYSE:ALV) Q3 2023 Earnings Conference Call October 20, 2023 8:00 AM ET Company Participants Anders Trapp - VP, IR Mikael Bratt - President & CEO Fredrik Westin - CFO Conference Call Participants Emmanuel Rosner - Deutsche Bank Colin Langan - Wells Fargo Mattias Holmberg - DNB Jairam Nathan - Daiwa Giulio Pescatore - BNP Exane Agnieszka Vilela - Nordea Hampus Engellau - Handelsbanken Rod Lache - Wolfe Research Operator Good day, and thank you for standing by. Welcome to the Autoliv Third Quart ...

PART I - FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Autoliv's unaudited condensed consolidated financial statements for the periods ended September 30, 2023, along with detailed notes on accounting policies and financial performance Consolidated Statements of Income (Three Months Ended September 30) | Metric | 2023 (Millions $) | 2022 (Millions $) | Change (%) | | :----- | :---------------- | :---------------- | :--------- | | Net Sales | 2,596 | 2,302 | 13% | | Gross Profit | 465 | 383 | 21% | | Operating Income | 232 | 171 | 36% | | Net Income | 134 | 106 | 27% | | Diluted EPS | 1.57 | 1.21 | 30% | Consolidated Statements of Income (Nine Months Ended September 30) | Metric | 2023 (Millions $) | 2022 (Millions $) | Change (%) | | :----- | :---------------- | :---------------- | :--------- | | Net Sales | 7,724 | 6,507 | 19% | | Gross Profit | 1,291 | 998 | 29% | | Operating Income | 453 | 429 | 5.5% | | Net Income | 262 | 268 | (2.5%) | | Diluted EPS | 3.04 | 3.06 | (0.5%) | Condensed Consolidated Balance Sheets (As of September 30, 2023 vs. December 31, 2022) | Metric | Sep 30, 2023 (Millions $) | Dec 31, 2022 (Millions $) | | :----- | :------------------------ | :------------------------ | | Total Assets | 7,987 | 7,717 | | Total Current Liabilities | 3,851 | 3,642 | | Total Equity | 2,486 | 2,626 | Condensed Consolidated Statements of Cash Flows (Nine Months Ended September 30) | Metric | 2023 (Millions $) | 2022 (Millions $) | | :----- | :---------------- | :---------------- | | Net Cash Provided by Operating Activities | 535 | 251 | | Net Cash Used in Investing Activities | (419) | (319) | | Net Cash Used in Financing Activities | (232) | (389) | | Cash and Cash Equivalents at End of Period | 475 | 483 | [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) The interim unaudited condensed consolidated financial statements are prepared under U.S. GAAP, focusing on Autoliv's single reportable segment of airbag and seatbelt products - The Company has one reportable segment, which includes Autoliv's airbag and seatbelt products and components[24](index=24&type=chunk) - Statements in this report that are not historical fact are forward-looking statements that involve risks and uncertainties[24](index=24&type=chunk) [2. New Accounting Standards](index=11&type=section&id=2.%20New%20Accounting%20Standards) Autoliv adopted ASU 2022-04 on January 1, 2023, requiring disclosure of supplier finance programs, with obligations recorded in Accounts Payable - The Company adopted **ASU 2022-04, Liabilities-Supplier Finance Programs**, as of January 1, 2023[27](index=27&type=chunk) - Autoliv uses an external payment service provider for certain suppliers, with outstanding obligations recorded in **Accounts Payable**[27](index=27&type=chunk) Supplier Finance Program Obligations (Nine Months Ended September 30, 2023) | Metric | Amount (Millions $) | | :----- | :------------------ | | Confirmed obligations outstanding at beginning of period | 314 | | Invoices confirmed during the period | 1,046 | | Confirmed invoices paid during the period | (1,030) | | Confirmed obligations outstanding at end of the period | 330 | [3. Fair Value Measurements](index=12&type=section&id=3.%20Fair%20Value%20Measurements) Autoliv uses derivative financial instruments to mitigate market risk, classifying all derivatives as Level 2 and certain nonrecurring asset measurements as Level 3 - All of the Company's derivatives are classified as **Level 2 financial instruments** in the fair value hierarchy[30](index=30&type=chunk) Derivatives Not Designated as Hedging Instruments (As of September 30, 2023 vs. December 31, 2022) | Metric | Sep 30, 2023 (Millions $) | Dec 31, 2022 (Millions $) | | :----- | :------------------------ | :------------------------ | | Nominal Volume | 2,016 | 2,616 | | Derivative Asset | 13 | 22 | | Derivative Liability | 25 | 15 | Fair Value of Debt (As of September 30, 2023 vs. December 31, 2022) | Metric | Sep 30, 2023 (Millions $) | Dec 31, 2022 (Millions $) | | :----- | :------------------------ | :------------------------ | | Total Long-term Debt (Carrying Value) | 1,277 | 1,054 | | Total Long-term Debt (Fair Value) | 1,262 | 1,027 | | Total Short-term Debt (Carrying Value) | 590 | 711 | | Total Short-term Debt (Fair Value) | 588 | 705 | [4. Income Taxes](index=15&type=section&id=4.%20Income%20Taxes) Autoliv's effective tax rate increased to **33.4%** for the three and nine months ended September 30, 2023, with a **$7 million** net increase in income tax reserves Effective Tax Rate | Period | Sep 30, 2023 | Sep 30, 2022 | | :----- | :----------- | :----------- | | Three Months | 33.4% | 30.8% | | Nine Months | 33.4% | 31.1% | - During the nine months ended September 30, 2023, the Company recorded a net increase of **$7 million** to income tax reserves for unrecognized tax benefits[41](index=41&type=chunk) - Total unrecognized tax benefits as of September 30, 2023, were **$53 million**, with **$16 million** classified as current and **$37 million** as non-current[41](index=41&type=chunk) [5. Inventories](index=15&type=section&id=5.%20Inventories) Inventories are valued at the lower of cost and net realizable value, totaling **$982 million** net of reserve as of September 30, 2023 Inventories, Net of Reserve (Millions $) | Component | Sep 30, 2023 | Dec 31, 2022 | | :-------- | :----------- | :----------- | | Raw materials | 454 | 445 | | Work in progress | 325 | 350 | | Finished products | 289 | 265 | | Inventory valuation reserve | (87) | (91) | | Total inventories, net | 982 | 969 | [6. Restructuring](index=16&type=section&id=6.%20Restructuring) Autoliv's restructuring reserve totaled **$122 million** as of September 30, 2023, primarily for European footprint optimization activities expected to conclude by 2025 - As of September 30, 2023, approximately **$105 million** of the **$122 million** total restructuring reserve balance is for footprint optimization activities in Europe (Germany and UK)[45](index=45&type=chunk) Employee-Related Restructuring Reserves (Millions $) | Metric | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :----- | :------------------------------ | :----------------------------- | | Reserve at beginning of period | 127 | 32 | | Provision - charge | 8 | 118 | | Cash payments | (9) | (24) | | Reserve at end of period | 122 | 122 | [7. Product-Related Liabilities](index=16&type=section&id=7.%20Product-Related%20Liabilities) Autoliv's product-related liabilities, mainly for recall issues, totaled **$120 million** as of September 30, 2023, with a majority covered by **$120 million** in insurance receivables - As of September 30, 2023, the reserve for product-related liabilities was **$120 million**, mainly for recall-related issues[47](index=47&type=chunk)[48](index=48&type=chunk) - A majority of the product-related liabilities are covered by insurance, with total insurance receivables of **$120 million** as of September 30, 2023[47](index=47&type=chunk) - Provisions for the three and nine months ended September 30, 2023, primarily relate to warranty issues, while cash payments mainly relate to the Andrews litigation settlement[47](index=47&type=chunk) [8. Retirement Plans](index=17&type=section&id=8.%20Retirement%20Plans) Net periodic benefit cost for Autoliv's defined benefit plans was **$2 million** for U.S. and **$13 million** for Non-U.S. plans for the nine months ended September 30, 2023, with settlement accounting triggered for the primary U.S. pension plan Net Periodic Benefit Cost (Millions $) | Plan Type | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :-------- | :------------------------------ | :----------------------------- | | U.S. Plans | 1 | 2 | | Non-U.S. Plans | 4 | 13 | - The Company triggered settlement accounting for the primary U.S. pension plan in the third quarter of 2023 due to lump-sum payments exceeding service and interest costs[52](index=52&type=chunk) - The discount rate for the U.S. plan was changed from **5.32% to 5.98%** in Q3 2023 due to re-measurement, with the expected long-term rate of return on plan assets remaining at **5.05%**[52](index=52&type=chunk) [9. Contingent Liabilities](index=18&type=section&id=9.%20Contingent%20Liabilities) Autoliv faces various legal proceedings, including the ARC Inflator Class Action (loss reasonably possible), Honda Buckle Recall (**$27 million** accrual), and ZF Inflator Recall (estimated **$0 to $43 million** potential loss, anticipated immaterial net of insurance) - Autoliv is a defendant in the ARC Inflator Class Action, with a loss determined to be reasonably possible, but no accrual has been made and no estimated range of potential loss can be determined[59](index=59&type=chunk) - For the Honda Buckle Recall, a loss is probable, and the accrual exceeding product liability insurance receivable is **$27 million**[60](index=60&type=chunk) - For the ZF Inflator Recall, a loss is reasonably possible, with an estimated range of **$0 to $43 million**, but anticipated to be immaterial net of insurance claims and claims against ZF[61](index=61&type=chunk) [10. Stock Incentive Plan](index=19&type=section&id=10.%20Stock%20Incentive%20Plan) Eligible employees and directors participate in the 1997 Stock Incentive Plan, with stock-based compensation expense of **$3 million** and **$8 million** for the three and nine months ended September 30, 2023, respectively Stock-Based Compensation Expense (Millions $) | Period | 2023 | 2022 | | :----- | :--- | :--- | | Three Months Ended Sep 30 | 3 | 3 | | Nine Months Ended Sep 30 | 8 | 7 | - Approximately **8 thousand shares** (three months) and **120 thousand shares** (nine months) of common stock from treasury were utilized by the Plan during the periods ended September 30, 2023[64](index=64&type=chunk) [11. Earnings Per Share](index=20&type=section&id=11.%20Earnings%20Per%20Share) Basic and diluted earnings per share for the three months ended September 30, 2023, were **$1.58** and **$1.57**, respectively, and **$3.05** and **$3.04** for the nine months Earnings Per Share (EPS) | Metric | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :----- | :------------------------------ | :----------------------------- | | Net income attributable to controlling interest (Millions $) | 134 | 261 | | Basic EPS | 1.58 | 3.05 | | Diluted EPS | 1.57 | 3.04 | [12. Revenue Disaggregation](index=20&type=section&id=12.%20Revenue%20Disaggregation) Autoliv's net sales for the three months ended September 30, 2023, totaled **$2,596 million**, primarily from Airbags, Steering Wheels and Other (**$1,761 million**) and Seatbelt Products and Other (**$835 million**), with Americas as the leading region Net Sales by Products (Millions $) | Product Category | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :--------------- | :------------------------------ | :----------------------------- | | Airbags, Steering Wheels and Other | 1,761 | 5,191 | | Seatbelt Products and Other | 835 | 2,533 | | Total Net Sales | 2,596 | 7,724 | Net Sales by Region (Millions $) | Region | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :----- | :------------------------------ | :----------------------------- | | China | 538 | 1,488 | | Asia, excl. China | 495 | 1,449 | | Americas | 918 | 2,665 | | Europe | 646 | 2,122 | | Total Net Sales | 2,596 | 7,724 | [13. Subsequent Events](index=20&type=section&id=13.%20Subsequent%20Events) No reportable events occurred subsequent to September 30, 2023 [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=21&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes Autoliv's financial condition and results for Q3 and the first nine months of 2023, covering sales growth, profitability, cost reductions, liquidity, and non-U.S. GAAP measures - Autoliv's organic sales growth significantly outperformed Light Vehicle Production (LVP) in Q3 2023, with an **11% organic sales increase** against **3.8% global LVP growth**[77](index=77&type=chunk)[78](index=78&type=chunk) - Adjusted operating income was a new third-quarter record since the 2018 spin-off, with adjusted operating margin increasing from **7.5% to 9.4%** year-over-year[77](index=77&type=chunk)[78](index=78&type=chunk) - The company detailed intentions to reduce its indirect workforce by up to **2,000**, expecting annual cost reductions of around **$35 million** in 2024, **$65 million** in 2025, and **$85 million** when fully implemented[77](index=77&type=chunk)[81](index=81&type=chunk) [Executive Overview](index=22&type=section&id=Executive%20Overview) Autoliv reported strong Q3 2023 performance with significant organic sales growth, record adjusted operating income, and a focus on structural cost reductions and Chinese OEM market penetration - Organic sales growth continued to significantly outperform LVP, and adjusted operating income was a new third-quarter record since the spin-off in 2018[77](index=77&type=chunk) - In the first nine months, sales to fast-growing domestic OEMs in China increased by **more than 50%** year over year[77](index=77&type=chunk) - Full-year sales indication increased due to better-than-expected LVP development, despite the UAW strike[77](index=77&type=chunk) [Business and Market Condition Update for the Third Quarter 2023](index=23&type=section&id=Business%20and%20market%20condition%20update%20for%20the%20third%20quarter%202023) Global LVP grew **3.8%** in Q3 2023, with inflationary cost pressures largely offset by customer compensations, and Autoliv expects a full-year **20%** tax rate due to reorganization - Global light vehicle production growth was **3.8%** year-over-year in Q3 2023, with continued gradual improvement in call-off volatility, though still higher than pre-pandemic levels[79](index=79&type=chunk) - Most inflationary cost pressure in Q3 2023 was offset by customer price and other compensations; raw material cost impact was negligible[80](index=80&type=chunk) - Autoliv expects its full-year 2023 tax rate to be around **20%**, down from previous expectations, due to ongoing reorganization of global functions and European operations[81](index=81&type=chunk) [Results of Operations (Three Months Ended September 30, 2023 vs. 2022)](index=24&type=section&id=RESULTS%20OF%20OPERATIONS) Autoliv's Q3 2023 net sales increased **13%** to **$2,596 million** with **11%** organic growth, leading to a **36%** rise in operating income to **$232 million** and **30%** diluted EPS growth to **$1.57** Key Financial Ratios (Q3 2023 vs. Q3 2022) | Metric | Q3 2023 | Q3 2022 | | :----- | :------ | :------ | | Gross Margin (%) | 17.9% | 16.7% | | Operating Margin (%) | 8.9% | 7.4% | | Return on Total Equity (%) | 21.3% | 16.8% | | Return on Capital Employed (%) | 24.2% | 18.0% | | Headcount at period-end | 71,200 | 67,800 | Sales Development (Three Months Ended September 30) | Metric | 2023 (Millions $) | 2022 (Millions $) | Reported Change (%) | Organic Change (%) | | :----- | :---------------- | :---------------- | :------------------ | :----------------- | | Airbags, Steering Wheels and Other | 1,761 | 1,510 | 17% | 15% | | Seatbelt Products and Other | 835 | 792 | 5.5% | 2.6% | | Total Net Sales | 2,596 | 2,302 | 13% | 11% | Sales by Region (Three Months Ended September 30) | Region | 2023 (Millions $) | 2022 (Millions $) | Reported Change (%) | Organic Change (%) | | :----- | :---------------- | :---------------- | :------------------ | :----------------- | | Asia | 1,033 | 955 | 8.1% | 12% | | Americas | 918 | 794 | 16% | 11% | | Europe | 646 | 552 | 17% | 8.5% | | Global LVP Growth | N/A | N/A | N/A | 3.8% | [Results of Operations (Nine Months Ended September 30, 2023 vs. 2022)](index=27&type=section&id=NINE%20MONTHS%20PERIOD%20ENDED%20SEPTEMBER%2030%2C%202023%20COMPARED%20WITH%20NINE%20MONTHS%20PERIOD%20ENDED%20SEPTEMBER%2030%2C%202022) For the first nine months of 2023, net sales grew **19%** to **$7,724 million** with **19%** organic growth, while operating income increased **5.5%** to **$453 million**, and net income decreased **2.5%** to **$262 million** due to 'Other income (expense), net' changes Sales Development (Nine Months Ended September 30) | Metric | 2023 (Millions $) | 2022 (Millions $) | Reported Change (%) | Organic Change (%) | | :----- | :---------------- | :---------------- | :------------------ | :----------------- | | Airbags, Steering Wheels and Other | 5,191 | 4,226 | 23% | 23% | | Seatbelt Products and Other | 2,533 | 2,281 | 11% | 11% | | Total Net Sales | 7,724 | 6,507 | 19% | 19% | Sales by Region (Nine Months Ended September 30) | Region | 2023 (Millions $) | 2022 (Millions $) | Reported Change (%) | Organic Change (%) | | :----- | :---------------- | :---------------- | :------------------ | :----------------- | | Asia | 2,937 | 2,544 | 15% | 21% | | Americas | 2,665 | 2,225 | 20% | 16% | | Europe | 2,122 | 1,738 | 22% | 20% | | Global LVP Growth | N/A | N/A | N/A | 9.1% | - Other income (expense), net was negative **$115 million** in the first nine months of 2023, compared to positive **$91 million** in the prior year, which included an **$80 million** gain from property sale and **$20 million** from a patent litigation settlement[104](index=104&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Autoliv's trade working capital decreased to **$1,303 million**, operating cash flow increased to **$535 million**, free cash flow improved to **$117 million**, and the leverage ratio improved to **1.3x**, maintaining **$1.6 billion** in liquidity Liquidity and Capital Metrics (Millions $) | Metric | Sep 30, 2023 | Sep 30, 2022 | | :----- | :----------- | :----------- | | Trade Working Capital | 1,303 | 1,314 | | Operating Cash Flow (9M) | 535 | 251 | | Free Cash Flow (9M) | 117 | (69) | | Net Debt | 1,375 | 1,288 | | Leverage Ratio | 1.3x | 1.6x | - As of September 30, 2023, Autoliv's cash balance was around **$0.5 billion**, and including committed, unused loan facilities, its liquidity position was around **$1.6 billion**[107](index=107&type=chunk) - Total equity decreased by **$5 million** compared to September 30, 2022, due to dividend payments and stock repurchases, partly offset by net income and positive currency translation effects[107](index=107&type=chunk) [Non-U.S. GAAP Measures](index=30&type=section&id=NON-U.S.%20GAAP%20MEASURES) Autoliv utilizes non-U.S. GAAP measures like adjusted operating income, margin, and EPS to provide supplemental information and improve comparability, excluding specific items such as capacity alignments and litigation settlements Adjusted Operating Income & EPS (Three Months Ended Sep 30) | Metric | U.S. GAAP (Millions $) | Adjustments (Millions $) | Non-U.S. GAAP (Millions $) | | :----- | :--------------------- | :----------------------- | :------------------------- | | Operating Income | 232 | 11 | 243 | | Operating Margin (%) | 8.9% | 0.4% | 9.4% | | Diluted EPS | 1.57 | 0.09 | 1.66 | Adjusted Operating Income & EPS (Nine Months Ended Sep 30) | Metric | U.S. GAAP (Millions $) | Adjustments (Millions $) | Non-U.S. GAAP (Millions $) | | :----- | :--------------------- | :----------------------- | :------------------------- | | Operating Income | 453 | 133 | 586 | | Operating Margin (%) | 5.9% | 1.7% | 7.6% | | Diluted EPS | 3.04 | 1.44 | 4.48 | - Adjustments to operating income for the nine months ended September 30, 2023, primarily include **$122 million** for capacity alignments, **$8 million** for the Andrews litigation settlement, and **$3 million** for antitrust-related matters[115](index=115&type=chunk) [Full Year 2023 Indications](index=34&type=section&id=Full%20year%202023%20indications) Autoliv projects full-year 2023 organic sales growth of around **17%**, an adjusted operating margin of **8.5%-9%**, a tax rate of around **20%**, operating cash flow of around **$900 million**, and capital expenditures at around **6%** of sales Full Year 2023 Indications | Financial Measure | Indication | | :---------------- | :--------- | | Organic sales growth | Around 17% | | Foreign currency impact on net sales | Around 1% positive | | Adjusted operating margin | Around 8.5%-9% | | Tax rate | Around 20% | | Operating cash flow | Around $900 million | | Capital expenditures, net % of sales | Around 6% | - The outlook assumes the UAW strike is not prolonged beyond what is included in the S&P Global October outlook[126](index=126&type=chunk) [Other Recent Events](index=36&type=section&id=Other%20recent%20events) Autoliv announced key product launches and strategic collaborations in Q3 2023, alongside headcount reduction initiatives and the repurchase of **1.23 million** shares of common stock - Key product launches in the nine months ended September 30, 2023, included airbags, seatbelts, and steering wheels for models like BMW 5-series/i5, Honda Elevate, Volvo EX30, and Rolls Royce Spectre[129](index=129&type=chunk) - Autoliv China and Great Wall Motor announced an intention to collaborate on advanced technologies, including overhead passenger airbags and airbags for zero gravity seats[130](index=130&type=chunk) - Autoliv repurchased and retired **1.23 million shares** of common stock at an average price of **$97.23 per share** in Q3 2023 under its 2022-2024 stock repurchase program[130](index=130&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=37&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes occurred in quantitative and qualitative market risk disclosures as of September 30, 2023, compared to the prior annual report - No material changes to market risk disclosures as of September 30, 2023[132](index=132&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=37&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Autoliv's management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes in internal control over financial reporting - The Company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of September 30, 2023[133](index=133&type=chunk) - There have been no material changes in the Company's internal control over financial reporting during the fiscal quarter[133](index=133&type=chunk) PART II - OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=38&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Information on legal proceedings is incorporated by reference from Note 9, 'Contingent Liabilities,' in Part I, Item 1 of this Quarterly Report - Information on legal proceedings is incorporated by reference from Note 9, 'Contingent Liabilities,' in Part I, Item 1[135](index=135&type=chunk) [ITEM 1A. RISK FACTORS](index=38&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors were reported as of September 30, 2023, compared to the Company's prior annual report - No material changes to risk factors as of September 30, 2023[136](index=136&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=38&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Autoliv repurchased **1,233,868** common shares at an average price of **$97.23** under its 2022-2024 stock repurchase program during the three months ended September 30, 2023 Common Stock Repurchases (Three Months Ended September 30, 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share (USD) | | :----- | :------------------------------- | :--------------------------------- | | July 1-31, 2023 | 96,900 | 100.42 | | August 1-31, 2023 | 773,175 | 96.45 | | September 1-30, 2023 | 363,793 | 98.12 | | Total | 1,233,868 | 97.23 | | Maximum Number of Shares Yet May Be Purchased Under the Plans or Programs | 13,400,109 | N/A | - The stock repurchase program, approved on November 16, 2021, authorizes the Company to repurchase up to **$1.5 billion** or up to **17 million common shares** between January 2022 and the end of 2024[138](index=138&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=38&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This item is not applicable to Autoliv, Inc. for the current reporting period [ITEM 4. MINE SAFETY DISCLOSURES](index=38&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to Autoliv, Inc. for the current reporting period [ITEM 5. OTHER INFORMATION](index=38&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended September 30, 2023 - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended September 30, 2023[140](index=140&type=chunk) [ITEM 6. EXHIBITS](index=39&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed as part of the Form 10-Q, including XBRL documents, corporate governance, debt agreements, and CEO/CFO certifications - Exhibits include Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents) and the Cover Page Interactive Data File[143](index=143&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - Key exhibits include Autoliv's Restated Certificate of Incorporation, Third Restated By-Laws, various Indentures and Note Purchase and Guaranty Agreements, and certifications from the CEO and CFO[145](index=145&type=chunk)

Financial Data and Key Metrics Changes - The company reported a record operating cash flow of $379 million for Q2 2023, significantly improving from the previous year and the first quarter of 2023 [6][14][20] - Adjusted operating income increased by over 70% to $212 million from $124 million year-over-year, with an adjusted operating margin of 8%, up 2 percentage points from the same period last year [14][16] - The debt leverage ratio decreased to 1.3 times from 1.6 times in the previous quarter, supporting shareholder return ambitions [6][21] Business Line Data and Key Metrics Changes - Consolidated net sales reached $2.6 billion, a 27% increase year-over-year, driven by price, volume, and mix [11][16] - The gross margin improved by 180 basis points compared to the first quarter, attributed to higher labor efficiency and stable light vehicle production [8][14] - The company experienced a significant increase in organic sales growth, outperforming global light vehicle production by approximately 11 percentage points in Q2 [12][13] Market Data and Key Metrics Changes - Regional sales split showed Asia accounted for 37%, Americas for 35%, and Europe for 28%, with China's share increasing to 19% from 17% last year [12] - Global light vehicle production is projected to increase by 5.1% in 2023, with North America expected to see an 8% increase [22][23] - The company outperformed light vehicle production growth in various regions, including China by 23 percentage points and Japan by 22 percentage points [13] Company Strategy and Development Direction - The company is accelerating structural cost reductions, including a headcount reduction of around 1,100 employees, to enhance competitiveness and financial targets [10][11] - Focus on safety technology development continues, with new product launches expected to drive future growth [7][15] - The company aims for a gradual improvement in adjusted operating margin throughout 2023, with significant price compensation expected in Q4 [9][24] Management's Comments on Operating Environment and Future Outlook - Management noted an improving global supply chain environment, contributing to better customer call-off volatility [5] - The company maintains a conservative outlook for light vehicle production growth, incorporating potential risks from UAW negotiations [26][28] - Management expressed confidence in achieving a significant full-year increase in cash flow and adjusted operating income [9][24] Other Important Information - The company paid a dividend of $0.66 per share and repurchased 475,000 shares during the quarter [6][17] - The structural cost reduction plan is expected to yield savings of $25 million in 2024, increasing to $75 million when fully implemented [11][58] Q&A Session Summary Question: Light vehicle production assumptions and risks - Management increased the light vehicle production outlook from 3% to 4% for the year, reflecting improved year-to-date developments, while still incorporating risks from UAW negotiations [26][28] Question: Compensation details and expectations for the second half - Compensation received in the first half was in line with expectations, with a higher share of lump sum settlements compared to the previous year [36] Question: Demand situation and underlying demand levels - Management indicated that there is a backlog in demand, with inventory levels historically low, particularly in the US [38] Question: Structural cost reduction plan details - The $75 million savings mentioned is related to the recent headcount reduction announcement, with more actions expected in the future [49][50] Question: Pricing contribution to organic growth - Management did not provide specific breakdowns on pricing contributions but indicated that pricing negotiations are ongoing [57] Question: Operating leverage and margin sustainability - Management noted that operating leverage is influenced by volume growth and that the current environment allows for potential higher leverage [67][70]