Autoliv - Q2 2024: Sales headwinds from lower LVP

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]