Autoliv(ALV) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for Q1 2025 were $2,578 million, a decrease of 1.4$2,615 million in Q1 2024[14] - Gross profit increased to $478 million in Q1 2025, up 7.9$443 million in Q1 2024[14] - Operating income rose to $254 million, reflecting a 30.9$194 million in the same period last year[14] - Net income attributable to controlling interest was $167 million, compared to$126 million in Q1 2024, marking a 32.5% increase[14] - Basic net earnings per share increased to $2.15, up from$1.53 in Q1 2024, representing a growth of 40.5%[14] - Total comprehensive income for the first quarter of 2025 was $175 million, up from$85 million in the first quarter of 2024, indicating a significant improvement in overall financial performance[26] Assets and Liabilities - Total assets as of March 31, 2025, were $8,114 million, an increase from$7,804 million at the end of 2024[21] - Cash and cash equivalents decreased to $322 million from$330 million at the end of 2024[21] - As of March 31, 2025, total equity increased to $2,361 million from$2,285 million at December 31, 2024, reflecting a growth of approximately 3.3%[26] - Total inventories as of March 31, 2025, were $999 million, a slight decrease from$1,003 million as of December 31, 2024[62] - The company’s total short-term debt as of March 31, 2025, was $540 million, compared to$541 million as of December 31, 2024[53] Cash Flow and Dividends - Net cash provided by operating activities was $77 million, down from$122 million in Q1 2024[25] - The company declared a cash dividend of $0.70 per share, up from$0.68 in Q1 2024[14] - Cash dividends declared in the first quarter of 2025 amounted to $54 million, consistent with the previous year's first quarter[26] - The company repurchased and retired shares worth$50 million in the first quarter of 2025, compared to $161 million in the same period of 2024, showing a reduction in share buyback activity[26] Expenses and Costs - Research, development, and engineering expenses (net) for the three months ended March 31, 2025, were$95 million, down from $113 million in 2024[98] - The company recorded approximately$7 million in stock-based compensation expense for the three months ended March 31, 2025, compared to $3 million for the same period in 2024[87] Tax and Reserves - The effective tax rate for the three months ended March 31, 2025, was 28.0$1 million to income tax reserves for unrecognized tax benefits during the three months ended March 31, 2025[60] - The restructuring reserve balance as of March 31, 2025, was $121 million, primarily related to a global structural cost reduction program initiated in Europe in 2023[63] - The reserve for product-related liabilities as of March 31, 2025, was$71 million, compared to $78 million as of March 31, 2024[69] Legal and Compliance - The company is currently involved in civil litigation in the UK and Germany related to alleged anti-competitive behavior, with a potential loss range of €0 to €95 million from a complaint filed by BMW[73] - The company anticipates potential losses related to the NHTSA recall decision affecting approximately 52 million airbag inflators, with no accrual made at this time[80] - The Honda Buckle Recall involved approximately 449,000 vehicles, with an estimated excess of$12 million in product liability accrual over insurance receivables[82] - The company has determined that a loss is reasonably possible with respect to the ZF Inflator Recall, estimating potential losses between $0 to$43 million[83] Segment and Reporting Changes - The company has one reportable segment, which includes airbag and seatbelt products and components, indicating a focused operational strategy[29] - The company adopted ASU 2023-07 in Q4 2024, enhancing segment disclosures, which may impact future financial reporting transparency[34] - The company is currently assessing the impact of ASU 2024-03 on its financial statements, which will require additional disclosures about specific expense categories starting in 2026[37] Derivatives and Interest - Gains from derivatives not designated as hedging instruments were $28 million for the three months ended March 31, 2025, compared to$10 million in the same period of 2024, indicating improved performance in risk management[45] - The company reported a loss of $1 million in interest expense related to derivatives for the first quarter of 2025, contrasting with a gain of$1 million in the same quarter of 2024[46]