Financial Data and Key Metrics - Net sales decreased by 1% YoY to $2.6 billion, driven by unfavorable currency translation effects, lower light vehicle production, and a negative regional and customer mix [11][12] - Adjusted operating income increased by 4% YoY to $221 million, with the adjusted operating margin improving by 50 basis points to 8.5% [11][21] - Operating cash flow was $340 million, $39 million lower than Q2 2023, which was unusually strong due to working capital reversals [11][24] - Gross margin improved by 130 basis points YoY and sequentially, supported by higher direct labor efficiency and cost reductions [10][21] - Leverage ratio improved to 1.2x, despite $250 million in shareholder returns during the quarter [7][26] Business Line Performance - Sales to domestic Chinese OEMs increased by 39% YoY and accounted for 38% of total sales in China, up from 20% in early 2022 [15] - Safety Content per Vehicle (CPV) is on track to grow by around 10% from 2022 to 2024 for both global and domestic Chinese OEMs [16] - The company signed a strategic cooperation agreement with XPENG AEROHT, a Chinese flying car innovator, to pioneer safety solutions for future mobility [7] Market Performance - Global light vehicle production was 3 percentage points lower than expected, with significant reductions in Europe, Japan, and China [8][13] - Sales in China underperformed by 7 percentage points due to declining production from key global customers and strong growth in low Autoliv content models [14][16] - The company outperformed global light vehicle production by 140 basis points, driven by strong performance in Japan, Rest of Asia, and Europe [14] Strategy and Industry Competition - The company is focused on reducing its indirect workforce by up to 2,000 employees, targeting $50 million in savings for 2024 [5] - Autoliv is strengthening its position with fast-growing domestic Chinese OEMs, which now account for 55% of China's light vehicle production, up from 40% in early 2022 [15] - The company expects a record number of product launches in 2024, with six models produced in China, reflecting its strong position in the region [17] Management Commentary on Operating Environment and Outlook - Management expects sequential margin improvement in H2 2024, targeting an adjusted operating margin of 11% to 12%, supported by stable light vehicle production, cost control, and customer compensations [32][69] - Full-year 2024 guidance was adjusted to reflect a 3% decline in global light vehicle production, with organic sales growth expected at around 2% [32] - The company remains committed to its around 12% adjusted operating margin target and high shareholder returns, supported by strong cash flow and balance sheet efficiency [7][32] Other Key Information - The company phased out sulfur hexafluoride (SF6) in steering wheel production, reducing Scope 1 and 2 emissions by 6% [19] - Autoliv developed airbag cushions made from 100% recycled polyester, contributing to its net-zero greenhouse gas emissions target by 2040 [20] - The company entered into a $125 million revolving credit facility with Standard Chartered Bank, maturing in 2029 [27] Q&A Session Summary Question: Why is the decremental margin at the higher end of the range? - The decremental margin is at the higher end due to lower light vehicle production and a slight headwind from raw materials [36][37] Question: How much of the mix headwind is expected in H2 2024? - The mix headwind is expected to be around negative 1% for the full year, with improvements in China offsetting some of the negative trends [39][40] Question: What is the view on light vehicle production and price compensation? - The company is more cautious on Europe due to economic headwinds, while price compensation negotiations remain detailed and evidence-driven [44][45] Question: Is the out-of-period compensation a timing issue? - The out-of-period compensation is a timing issue, with $6 million negotiated in Q2 2024 retroactively applied to Q1 2024 [48][49] Question: What drives the expected margin improvement in H2 2024? - Margin improvement is driven by higher light vehicle production, cost control, customer compensations, and structural initiatives, offset by raw material headwinds [69][70] Question: What are the cost reduction opportunities? - The company targets $50 million in indirect cost savings for 2024, ramping up to $130 million when fully implemented, with $40 million in year-over-year savings [75] Question: How should we think about market outgrowth? - The company focuses on organic growth of 4% to 6%, driven by light vehicle production growth, content growth, and additional business opportunities [78]

Core Insights - Autoliv reported a decline in second-quarter sales due to a slump in car demand, leading to a reduction in its guidance for the year [1] - The company missed both quarterly profit and revenue estimates, with adjusted earnings per share (EPS) at $1.87 and revenue down 1.1% year-over-year to $2.61 billion [1] - Autoliv has revised its full-year organic sales growth outlook down to approximately 2% from the previous estimate of about 5% and adjusted its operating margin forecast to around 9.5% to 10% from about 10.5% [3] Company Performance - CEO Mikael Bratt indicated that light vehicle production with key customers was lower than expected, particularly in June, due to weaker sales and inventory adjustments [2] - The company anticipates a 5.5% decline in worldwide light vehicle production for the third quarter and a 2.2% decrease for the entire year of 2024 [3] - Following the announcement, Autoliv's shares fell approximately 8% to $99.82, marking the lowest level in eight months [3]

Group 1: Profitability and Sales Performance - Profitability improved in Q2 despite a slight decline in net sales, driven by better pricing and cost reductions, with indirect headcount reduced by 1,100 [1] - The company outperformed LVP significantly in Asia excluding China and in Europe, supported by product launches and better pricing, while slightly underperforming in the Americas due to reduced production from key customers [1] Group 2: Market Dynamics in China - The company expanded its business with domestic Chinese OEMs, which accounted for 38% of China sales in Q2, with a 39% year-over-year sales growth and a 25% increase compared to the previous quarter [2] - Despite the growth with domestic OEMs, the overall market in China developed unfavorably, leading to a 7 percentage point underperformance due to significant production declines from key global customers [2] Group 3: Financial Guidance and Outlook - The company remains focused on achieving an adjusted operating margin target of around 12%, while slightly adjusting the full year 2024 guidance due to changes in LVP and customer mix [3] - A significant increase in profitability is expected in the second half of the year, with an adjusted operating margin projected at around 11-12% compared to 8.0% in the first half [3] - Positive developments in cash flow and balance sheet support the company's commitment to high shareholder returns [3]

Group 1: Profitability and Sales Performance - Profitability improved in Q2 despite a slight decline in net sales, driven by better pricing and cost reductions, with a reduction of 1,100 indirect headcount since the start of the program [1] - The company outperformed LVP significantly in Asia excluding China and in Europe, supported by product launches and better pricing, while slightly underperforming in the Americas due to reduced production from key customers [1] Group 2: Market Dynamics in China - The company is expanding its business with domestic Chinese OEMs, which accounted for 38% of China sales in Q2, with a 39% year-over-year sales growth and a 25% increase compared to the previous quarter [2] - Despite growth in sales to domestic OEMs, the overall market developed unfavorably in Q2, leading to a 7 percentage point underperformance in China due to significant production declines from key global customers [2] Group 3: Financial Guidance and Outlook - The company remains focused on achieving an adjusted operating margin target of around 12%, while slightly adjusting the full year 2024 guidance due to changes in LVP and adverse customer mix [3] - A significant increase in profitability is expected in the second half of the year, with an adjusted operating margin projected at around 11-12% compared to 8.0% in the first half [3] - Positive developments in cash flow and balance sheet support the company's commitment to high levels of shareholder returns [3]

For the quarter ended June 2024, Autoliv, Inc. (ALV) reported revenue of $2.61 billion, down 1.1% over the same period last year. EPS came in at $1.87, compared to $1.93 in the year-ago quarter.The reported revenue represents a surprise of -6.09% over the Zacks Consensus Estimate of $2.77 billion. With the consensus EPS estimate being $2.44, the EPS surprise was -23.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No.: 001-12933 AUTOLIV, INC. (Exact name of registrant as specified in its charter) Delaware 51-0378542 (State or other jurisdiction of (I.R.S. Employe ...

Autoliv, Inc. (ALV) came out with quarterly earnings of $1.87 per share, missing the Zacks Consensus Estimate of $2.44 per share. This compares to earnings of $1.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -23.36%. A quarter ago, it was expected that this company would post earnings of $1.40 per share when it actually produced earnings of $1.58, delivering a surprise of 12.86%.Over the last four quarters, the company ha ...

Exhibit 99.1 Financial Report April - June 2024 Stockholm, Sweden, July 19, 2024 (NYSE: ALV and SSE: ALIV.sdb) Autoliv Financial Report April - June 2024 Q2 2024: Sales headwinds from lower LVP Financial highlights Q2 2024 $2,605 million net sales 1.1% net sales decrease 0.7% organic sales growth* 7.9% operating margin 8.5% adjusted operating margin* $1.71 EPS, 178% increase $1.87 adjusted EPS*, 3% decrease Full year 2024 guidance Around 2% organic sales growth Around 1% negative FX effect on net sales Arou ...

Share Repurchase and Issued Shares - Autoliv retired 1,309,606 shares of common stock that had been repurchased during the quarter, resulting in a decrease in the issued shares [1] - The total number of issued shares of common stock is now 84,816,615, with 80,079,757 shares outstanding [1] - After the retirement of the repurchased shares, Autoliv holds 4,736,858 shares of common stock in treasury, which have no voting rights or rights to participate in distributions under Delaware law [1] Company Overview - Autoliv is the worldwide leader in automotive safety systems, developing, manufacturing, and marketing protective systems such as airbags, seatbelts, and steering wheels for major automotive manufacturers [2] - The company also provides mobility safety solutions, including pedestrian protection, connected safety services, and safety solutions for riders of powered two-wheelers [2] - In 2023, Autoliv's products saved 35,000 lives and reduced more than 450,000 injuries [2] Operational and Financial Highlights - Autoliv has 70,000 associates in 25 countries and operates 14 technical centers with 20 test tracks [3] - The company's sales in 2023 amounted to $10.5 billion [3] - Autoliv is committed to driving innovation, research, and development to sustainably deliver leading safety solutions [3]

The prospects of the Zacks Automotive - Original Equipment industry are subdued amid a potential slowdown in the vehicle growth rate. High borrowing costs and delays in the Fed rate cut have increased challenges for industry participants closely tied to auto sales. Additionally, rising operational expenses and evolving industry dynamics pose further headwinds. Balancing revenue generation appears to be difficult, with success depending on effective cost-management strategies. However, companies such as Auto ...