Autoliv Q4 Earnings Beat Expectations, Sales Decline Y/Y

Core Insights - Autoliv Inc. reported fourth-quarter 2024 adjusted earnings of $3.05 per share, exceeding the Zacks Consensus Estimate of $2.83 but down 19% year over year [1] - The company’s net sales for the quarter were $2.62 billion, missing the Zacks Consensus Estimate of $2.71 billion and declining 4.9% year over year [1] Financial Performance - Organic sales decreased by 3.3% year over year, missing the estimated decline of 1% due to a negative regional and model light vehicle production mix [2] - Adjusted operating income was $349 million, reflecting a 4.7% year-over-year increase, with an adjusted operating margin of 13.4%, up from 12.1% in the previous year [2] Segmental Performance - Airbags and Associated Products segment sales totaled $1.76 billion, below the projection of $1.95 billion, with a 5.6% year-over-year decline [3] - Seatbelts and Associated Products segment sales reached $856 million, down 3.5% year over year but exceeding the forecast of $754.9 million [4] - Regional sales in the Americas were $786 million, missing the estimate of $800.2 million and decreasing 8.7% year over year [4] - Sales in Europe were $715 million, below the forecast of $782.7 million, down 5.3% year over year [5] - Sales in China were $587 million, missing the projection of $606.1 million, and fell 4.8% year over year [5] - Sales in the Rest of Asia totaled $527 million, increasing 1.7% year over year and surpassing the projection of $512.1 million [5] Financial Position - As of December 31, 2024, Autoliv had cash and cash equivalents of $330 million and long-term debt of $1.52 billion [6] - Operating cash flow for the quarter was $420 million, with capital expenditure of $132 million, resulting in a free cash flow of $288 million [6] - The company paid a dividend of 70 cents per share and repurchased 1.04 million shares during the quarter [6] 2025 Guidance - Autoliv forecasts organic sales growth of around 2% for 2025, compared to 0.4% reported in 2024 [7] - The adjusted operating margin is expected to be in the range of 10-10.5% [7] - Operating cash flow is anticipated to be $1.2 billion in 2025 [7]