Autoliv (ALV) Q2 Earnings Miss Expectations, Guidance Revised

Core Insights - Autoliv Inc. reported second-quarter 2024 adjusted earnings of $1.87 per share, missing the Zacks Consensus Estimate of $2.44 and reflecting a 3% year-over-year decline [1] - The company’s net sales for the quarter were $2.61 billion, falling short of the Zacks Consensus Estimate of $2.77 billion and decreasing by 1.1% year over year [1] - Organic sales increased by 0.7% year over year but were below the expected 5.6% due to reduced light vehicle production in the Americas and China [1] Segmental Performance - Airbags and Associated Products segment sales totaled $1.75 billion, missing projections of $1.87 billion and declining by 0.6% year over year, with notable declines in passenger and knee airbags [2] - Seatbelts and Associated Products segment sales reached $858 million, down 2.2% from the prior year and below the expected $909 million, primarily due to decreased organic sales in the Americas and China [2] - Regional sales in the Americas were $893 million, missing estimates of $971.3 million and decreasing by 2.6% year over year [2] - European sales totaled $761 million, missing forecasts of $787.7 million but increasing by 1.4% year over year [2] - Sales in China were $468 million, below projections of $525.3 million and down 5.9% year over year [3] - Sales in the Rest of Asia amounted to $483 million, up 2.6% year over year but missing the expected $498 million [3] Financial Position - As of June 30, 2024, Autoliv had cash and cash equivalents of $408 million and long-term debt of $1.54 billion [4] - The operating cash flow for the quarter was $340 million, with capital expenditures of $146 million, resulting in a free cash flow of $194 million [4] - The company paid a dividend of 68 cents per share and repurchased $1.31 million shares during the quarter [4] Revised 2024 Guidance - Autoliv revised its full-year 2024 organic sales growth forecast to around 2%, down from the previous expectation of 5% [5] - The adjusted operating margin is now anticipated to be in the range of 9.5-10%, reduced from the earlier projection of 10.5% [5] - Operating cash flow expectations for 2024 have been lowered to $1.1 billion from $1.2 billion [5]