Autoliv Reports Mixed Q3 Sales, Significant Profitability Improvements

Autoliv, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in net sales and significant improvements in profitability metrics compared to the previous fiscal period.

For the three months ended September 30, 2024, Autoliv's net sales totaled $2,555 million, reflecting a 1.6% decrease from $2,596 million in the same period of 2023. However, for the nine months ended September 30, 2024, net sales increased to $7,774 million, up 0.7% from $7,724 million in the prior year. The decline in quarterly sales was attributed to a 4.8% drop in global light vehicle production, although Autoliv's organic sales decline of 0.8% outperformed this trend.

Gross profit for the third quarter was $459 million, down from $465 million year-over-year, while gross profit for the nine months rose to $1,377 million, a 6.6% increase from $1,291 million in 2023. Operating income for Q3 2024 was $226 million, a decrease from $232 million in Q3 2023, but operating income for the nine months surged to $626 million, up 38% from $453 million in the previous year. The operating margin for Q3 was 8.9%, with an adjusted operating margin of 9.3%.

Net income for the third quarter increased to $139 million, compared to $134 million in the same period last year, while net income for the nine months reached $404 million, a substantial 55% increase from $262 million in 2023. Earnings per share (EPS) for Q3 2024 was $1.74, up 11% from $1.57 in Q3 2023, and for the nine months, EPS rose to $4.98, a 64% increase from $3.04.

The company declared a cash dividend of $0.68 per share for Q3 2024, up from $0.66 in the same period last year. Autoliv's total equity decreased to $2,298 million as of September 30, 2024, down from $2,570 million at the end of 2023, primarily due to dividend payments and stock repurchases.

Strategically, Autoliv has been active in its stock repurchase program, retiring 1.33 million shares in Q3 2024. The company also appointed new executives, including Ms. Adriana Karaboutis as an independent director and Mr. Fabien Dumont as Executive Vice President & Chief Technology Officer. Additionally, Autoliv is navigating ongoing civil litigation related to alleged anti-competitive behavior, which may impact its business operations.

Overall, while Autoliv faced challenges in sales due to market conditions, its profitability metrics showed significant improvement, reflecting effective cost management and strategic initiatives.