Autoliv, the renowned Swedish manufacturer of airbags and safety belts, has reported strong sales results for the second quarter of 2021. The company’s sales increased by an impressive 27% to reach $2.64 billion during this period, surpassing the consensus estimate of $2.55 billion. Additionally, Autoliv achieved an adjusted operating margin of 8.0%, higher than the expected 7.7% and a significant improvement from last year’s 6.0%.
Despite these positive figures, the net profit for the quarter fell short of analysts’ expectations. At $53 million, it failed to meet the FactSet-compiled forecast of $122 million. However, Autoliv remains confident in its ability to deliver robust financial performance in the future.
In line with its strategic initiatives, the company recently announced plans to streamline its operations on a global scale. This includes workforce reductions of up to 8,000 positions worldwide, as well as simplifying logistics and consolidating its geographic footprint. Several European sites will also be shut down as part of this optimization process.
While Autoliv observed an improvement in customer call-off volatility during the second quarter, it acknowledged that levels still remain higher than before the pandemic. The company attributes this to an evolving global supply chain environment for both customers and suppliers. As the industry stabilizes post-pandemic, Autoliv anticipates further progress in this area.
Looking ahead, Autoliv expects a back-end loaded adjusted operating margin for the second half of 2021 due to seasonal factors between the third and fourth quarters, as well as anticipated price negotiations. The company reiterates its forecast for 2023, projecting organic sales growth of approximately 15% and an adjusted operating margin ranging from 8.5% to 9.0%.