Supported by recent launches of vehicles such as the Jeep Grand Cherokee L, Mitsubishi Outlander and Peugeot 308, Autoliv expects vehicle production to outpace production by average proportions of one number this year.
The following is a detailed summary of the report:
Better than expected. Autoliv’s adjusted operating profit was $ 237 million last quarter. Analysts have estimated the amount of $ 206 million, according to the Infront of Rating. Adjusted operating margin was 10.6%, and expected was 9.6%. Sales were $ 2,242 million and analysts expected $ 2,155 million.
Repeats forecasts for margin and organic growth. Autoliv is reiterating its forecast for organic growth and margin in 2021. The assessment still indicates that organic sales growth for the whole of 2021 will be around 20 percent. In the first quarter, organic sales growth was 17.9 percent, which is clearly better than the expected 11.6 percent. Autoliv also continues to believe that the adjusted operating margin for the full year will end at around 10 percent. At the same time, the company is lowering its total sales growth forecast from 25 to 23 percent for 2021.
Semiconductor shortage It is expected to be Limited impact this year. Autoliv was indirectly affected during the first quarter of the year by the prevailing semiconductor shortage, due to the limited production of global vehicles. CEO Mikael Pratt estimates that the ingredient shortage won’t be too great during the year. “We don’t think, over the course of the year, that the semiconductor shortage will affect car production by more than 2-3%. The situation is expected to improve during the second part of the year,” Autoliv director told Nyhetsbyrån Direkt.
More expensive raw materials. Autoliv expects an unfavorable cost trend from rising raw material prices throughout 2021. This applies above all to steel and to some extent to some of the chemicals that are included in the company’s textiles. To address the problem, the auto safety company raises its prices towards customers. “There is no mechanism in our price increase models, but it does become more in discussion with our customers,” says Mike Pratt.