Autoliv Dips On Earnings Setback, Decreased Sales Outlook

Shares of Autoliv, Inc. (ALV) are down more than 5% in the morning trade on Friday following first-quarter results, that came in below Street expectations.

The automotive safety systems maker also cut its full-year organic sales growth outlook to about 12%-17% range from 20%.

Looking forward, Autoliv said, “We expect the current industry-wide semiconductor supply shortage to be a limiting factor for the LVP recovery in 2022. We also expect that current price environment could lead to raw material costs of up to 6pp in operating margin headwind for the full year of 2022, with similar year over year impact in all quarters.”

Net income for the first quarter declined nearly 50% to $83 million or $0.94 per share from $157 million or $1.79 per share a year ago, impacted by semiconductor shortage, as well as supply chain disruptions.

Excluding one-time items, earnings were $0.45 per share, that missed the average estimate of analysts polled by Thomson Reuters of $1.11 per share.

Sales for the quarter declined to $2.124 billion from $2.242 billion a year ago. The consensus estimate was for $2.18 billion.

ALV, currently at $73.03, has been trading in the range of $70.15-$110.59 in the past 52 weeks.

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