Autoliv(ALV) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 net sales were $2,616 million, a decrease of 4.9$353 million, representing a 49% increase compared to Q4 2023, with an operating margin of 13.5% [4]. - Consolidated sales for the full year 2024 were $10,390 million, a decrease of 0.8$10,475 million in 2023 [30]. - Operating income for the full year increased by 42% to $979 million, compared to$690 million in 2023 [39]. - Net income for Q4 2024 was $243 million, a 7.0$227 million in Q4 2023, while full-year net income rose 32% to $648 million from$489 million [55]. - Earnings per share (diluted) increased by 40% to $8.04, up from$5.72 in the previous year [39]. - Earnings per share (diluted) for Q4 2024 increased to $3.10, compared to$2.71 in Q4 2023, marking an increase of 14.4% [83]. - Adjusted net income for Q4 2024 was $240 million, down from$314 million in Q4 2023 [107]. - Net income attributable to controlling interest rose to $646 million in Q4 2024, compared to$488 million in Q4 2023, marking a 32% increase [112]. Cash Flow and Capital Management - Operating cash flow for Q4 2024 was $420 million, contributing to a record operating cash flow of$1,059 million for the full year [4]. - Operating cash flow for the full year 2024 reached $1,059 million, an increase from$982 million in 2023 [95]. - Free operating cash flow for Q4 2024 was $288 million, a decrease of 3.0$297 million in Q4 2023, while full-year free operating cash flow improved to $497 million from$414 million [59][66]. - Cash and cash equivalents as of December 31, 2024, were approximately $330 million, with net debt increasing to$1,554 million, up 14% from the previous year [61]. - The leverage ratio remained stable at 1.2x as of December 31, 2024, with trailing adjusted EBITDA increasing by around $97 million [65]. - Net cash provided by operating activities for the full year 2024 was$1,059 million, up from $982 million in 2023, reflecting a growth of 7.8$117 million year-over-year, with trade working capital in relation to sales improving from 11.2% to 10.7% [60]. - Total current assets decreased to $3,483 million from$3,865 million in the previous quarter, representing a decline of 9.9% [89]. - Total liabilities decreased to $5,519 million from$5,974 million in the previous quarter, a reduction of 7.6% [89]. - The number of employees decreased to 59,500 as of December 31, 2024, down from 62,900 in the previous year [112]. Market and Sales Performance - Sales to domestic Chinese OEMs grew by 20%, despite overall underperformance in the Chinese market due to a negative LVP mix [27]. - Organic sales growth was 0.4% globally, outperforming the global light vehicle production (LVP) decline of 1.2% [33]. - In the Americas, organic sales decreased by 1.7%, while Europe saw an increase of 1.4% and Asia excluding China increased by 6.6% [35]. - The company expects a challenging 2025 for the automotive industry, with a slight decline in LVP and ongoing geopolitical risks [8]. Sustainability Initiatives - The company continued to focus on sustainability as a key part of its business strategy, aligning with international frameworks and improving operational efficiency [69]. - The share of renewable electricity usage increased to 30% in the company's operations, contributing to a 15% reduction in Scope 1 and 2 GHG emissions compared to 2023 [72]. - Autoliv launched a climate accelerator program to support suppliers in meeting sustainability requirements [73]. - Autoliv's operational GHG emissions intensity improved, indicating enhanced energy efficiency measures [72]. Future Outlook and Guidance - Full year 2025 guidance includes around 2% organic sales growth and an adjusted operating margin of approximately 10-10.5% [11]. - The company plans to hold a Capital Markets Day on June 3, 2025, to discuss future strategies [9]. - Fitch Ratings assigned Autoliv a Long-Term Issuer Default Rating (IDR) of 'BBB+' with a Stable Outlook [81].