Autoliv: Financial Report October - December 2024

Core Insights - The company reported record operating profit, margin, and earnings per share (EPS) for Q4 2024, despite a decline in net sales and organic sales [1][8][11] Financial Performance - Q4 2024 net sales were $2,616 million, a decrease of 4.9% compared to Q4 2023 [4] - Organic sales declined by 3.3%, underperforming against a global light vehicle production (LVP) increase of 0.4% [5] - Operating income reached a record high of$ 353 million, with an operating margin of 13.5%, up from 8.6% in Q4 2023 [4][5] - Adjusted operating income was $349 million, with an adjusted operating margin of 13.4%, compared to 12.1% in the previous year [4] - Diluted EPS increased by 14% to$ 3.10, while adjusted diluted EPS decreased by 19% to $3.05 [4][5] Full Year Guidance - The company anticipates around 2% organic sales growth for 2025, with a negative foreign exchange effect of approximately 2% on net sales [1] - Expected adjusted operating margin for 2025 is around 10-10.5% [1] Operational Highlights - The company achieved a record operating cash flow of$ 1,059 million for FY 2024, with Q4 operating cash flow at $420 million [5] - A total of 1.04 million shares were repurchased and retired during the quarter [5] - The company experienced a reduction in total headcount by approximately 7% [5][9] Market Dynamics - The company outperformed in Asia (excluding China) and Europe due to successful product launches and positive pricing, while facing challenges in the Americas due to dealer inventory reductions [5][10] - Sales to domestic Chinese OEMs grew by 20%, but overall performance in China was impacted by a negative LVP mix [5][10] Strategic Outlook - The company expects a challenging year for the automotive industry in 2025, with slight declines in LVP and ongoing geopolitical risks [11] - A focus on efficiency and cost control is expected to support profitability improvements towards mid-term financial targets [11]