Autoliv, the Swedish manufacturer of airbags and safety belts, has increased its full-year sales growth guidance after experiencing better-than-expected global light vehicle production in the third quarter, despite the United Auto Workers strike in the U.S.
Strong Sales Performance in Q3
During the period, Autoliv reported a 13% increase in sales, amounting to $2.6 billion. This figure aligns with the company's compiled consensus of $2.59 billion. Additionally, the adjusted operating margin rose from 7.5% last year to 9.4%.
However, net profit for the quarter fell short of analysts' expectations, with $134 million instead of the forecasted $152 million.
Operational Improvements and Optimistic Outlook
Autoliv noted several positive developments during the quarter, including improvements in gross and operating margin, labor efficiency, selling, general and administration costs, as well as research and development expenses.
Chief Executive Mikael Bratt highlighted that supply-chain stability has improved throughout the year, resulting in reduced call-off volatility from customers. However, Bratt mentioned that this improvement was slower than expected, especially in Europe during the third quarter.
Despite these challenges, Autoliv anticipates a year-on-year adjusted operating margin improvement of approximately 1.5 to 2 percentage points for the fourth quarter. The company also raised its organic sales growth forecast for 2023 from around 15% to approximately 17%. The adjusted operating margin is expected to remain between 8.5% and 9.0%.
Autoliv's optimistic outlook reflects its commitment to continuous improvement and adaptation to market conditions.
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