Autoliv Misses Estimates and Cuts Outlook as Auto Sales Slow

Shares of Autoliv (ALV) sank Friday arsenic nan world’s largest shaper of seatbelts and airbags for cars and trucks posted worse-than-expected results and slashed its guidance because of a slowdown successful car sales.

The Sweden-based patient reported second-quarter adjusted earnings per stock (EPS) of $1.87, pinch gross falling 1.1% year-over-year to $2.61 billion. Both were short of forecasts.

Chief Executive Officer (CEO) Mikael Bratt said, “Light conveyance accumulation pinch definite cardinal customers pursuing weaker income and inventory adjustments were little than expected successful nan quarter, particularly successful June. The little than expected income impacted our profitability.” However, he added that customers’ accumulation plans for nan 3rd 4th are “normalizing,” and that past month’s pullback "should beryllium temporary."

Autoliv Cuts FY Organic Sales Growth Outlook

Still, Autoliv trim its full-year organic sales maturation outlook to astir 2% from astir 5% previously, and lowered its adjusted operating margin to astir 9.5% to 10%, compared to nan earlier projection of astir 10.5%. The institution anticipates that worldwide ray conveyance accumulation will beryllium down 5.5% successful nan 3rd quarter, and 2.2% for each of 2024.

Autoliv shares slumped astir 8% arsenic of 10:45 a.m. ET Friday to $99.82, their lowest level successful 8 months.