Brief: Autoliv Q3 Adjusted EBIT Margin 9.7%

Autoliv

Today 11:17

Oct 23 (Reuters) - Autoliv, Inc. ALV.N:
Q3 ADJUSTED EBIT MARGIN 9.7%
Q3 ADJUSTED EBIT USD 262 MILLION VERSUS. IBES ESTIMATE USD 258.7 MILLION
Q3 ADJUSTED EPS USD 2.19 VERSUS. IBES ESTIMATE USD 2.31
Q3 EBIT USD 254 MILLION
Q3 EPS USD 2.13
Q3 SALES USD 2,693 MILLION VERSUS. IBES ESTIMATE USD 2,734 MILLION
FULL YEAR 2026 GUIDANCE: 0% ORGANIC SALES GROWTH, 10.5% ADJUSTED MARGIN, $1.20 BILLION CASH FLOW
OUR SALES IN INDIA GREW BY NEARLY 30% AND OUR SALES TO CHINESE OEMS GREW BY MORE THAN 20%
STRONG SALES GROWTH IN JAPAN CONTRIBUTED TO OUR SALES IN ASIA EXCEEDING CHINA IN QUARTER
ADDITIONAL HEADWINDS NARROWS OUR FULL YEAR ADJUSTED OPERATING MARGIN EXPECTATION TO AROUND 10.5%, LOW END OF OUR RANGE OF AROUND 10.5-11%
OUR ORGANIC SALES OUTPERFORMED LVP IN ASIA EXCLUDING. CHINA AND IN CHINA, WHILE IT UNDERPERFORMED IN EMEA AND WAS ABOUT IN LINE WITH LVP IN THE AMERICAS
BUSINESS ENVIRONMENT REMAINS UNCERTAIN BUT WE ANTICIPATE A STRONG FOURTH QUARTER SUPPORTED BY AN INCREASING NUMBER OF PRODUCT LAUNCHES AND SIGNIFICANT RAW MATERIAL RECOVERIES
THROUGHOUT YEAR, COST HEADWINDS HAVE INCREASED MATERIALLY, MAINLY RELATED TO RAW MATERIALS, LOGISTICS, RECENT FLOODING IN THAILAND AND LOWER CALL OFF ACCURACY SINCE Q1
ABLE TO OFFSET MAJORITY OF COST HEADWINDS MAINLY THROUGH LABOR EFFICIENCY, MATERIAL SAVINGS THROUGH VALUE ENGINEERING AND SUCCESSFUL NEGOTIATIONS WITH CUSTOMERS AND SUPPLIERS
TARIFFS IMPOSED IN 2025 NEGATIVELY IMPACTED OUR PROFITABILITY IN THE THIRD QUARTER OF 2026
WE ACHIEVED CUSTOMER COMPENSATION FOR MORE THAN 80% OF THE TARIFF COSTS, RESULTING IN A NET NEGATIVE IMPACT AFTER COMPENSATION OF AROUND $6 MILLION, IN LINE WITH THE NET IMPACT IN THE THIRD QUARTER OF 2025
Source text: ID:nWkr2PsSj8
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