Autoliv(US:ALV) Prnewswire·2025-04-16 10:39Core Insights - The company reported net sales of $2,578 million for Q1 2025, reflecting a 1.4% decrease compared to Q1 2024, but achieved a 2.2% organic sales growth [1][2][3] - Operating income increased by 31% to $254 million, with an operating margin of 9.9%, up from 7.4% in the previous year [2][3] - Diluted earnings per share (EPS) rose by 41% to $2.14, indicating strong profitability improvements [1][2][3] Financial Highlights - Q1 2025 net sales: $2,578 million, down 1.4% from $2,615 million in Q1 2024 [2] - Operating income: $254 million, a 31% increase from $194 million [2] - Adjusted operating income: $255 million, up 28% from $199 million [2] - Operating margin: 9.9%, an increase of 2.4 percentage points from 7.4% [2] - Diluted EPS: $2.14, a 41% increase from $1.52 [2] - Adjusted diluted EPS: $2.15, a 37% increase from $1.58 [2] - Operating cash flow: $77 million, a decrease of 37% from $122 million [2] Business Developments - Organic sales growth of 2.2% outperformed the global light vehicle production (LVP) decrease of 0.4% [3] - Sales to domestic Chinese OEMs grew by 19%, aligning with their LVP growth, although overall performance in China was impacted by a shift towards lower content vehicles [3][5] - The company successfully navigated U.S. tariffs with minimal impact on operating profit, passing costs onto customers [3][6] Profitability and Cost Management - Profitability improved due to organic sales growth and effective cost reduction programs, with a total headcount decrease of 6% [3][6] - The leverage ratio was maintained at 1.3x, within the target range [3] - A dividend of $0.70 per share was paid, and 0.5 million shares were repurchased [3] Future Outlook - The company anticipates around 2% organic sales growth and an adjusted operating margin of 10-10.5% for the full year 2025 [1][9] - Confidence in improved sales performance in China is based on a record number of new product launches planned for 2025 [5][9]