Financial Report January - March 2021
04/23/2021 - 06:13 AM
STOCKHOLM , April 23, 2021 /PRNewswire/ -- (NYSE: ALV) (SSE: ALIV.sdb)
Q1 2021: Good progress in sales, profits, balance sheet
Financial highlights Q1 2021
$2,242m
17.9%
10.6%
10.6%
$1.79 108%
$1.79 103%
Full year 2021 indications
Around 23% net sales growth
Around 20% organic sales growth
Around 10% adjusted operating margin
Key business developments in the first quarter of 2021
Strong organic sales growth* , fueled by good performance in all regions. Sales increased organically by 17.9% , outperforming global LVP by more than 4pp (according to IHS Markit April 2021 ) despite adverse geographical mix effects as LVP grew strongly in lower CPV markets. All regions outperformed LVP by 6-23pp driven by launches and positive vehicle mix. Our order intake was in line with a year earlier. Strong improvement in operating income , driven by strong sales growth and continued cost control. Adjusted operating margin* improved by 3.2 pp to 10.6% . RoCE improved to 26.3% . Strong cash flow and strengthened balance sheet. Operating cash flow increased to $186m $93m *For non-U.S. GAAP measures see enclosed reconciliation tables. All change figures in this release compare to the same period of previous year except when stated otherwise.
Key Figures
(Dollars in millions, except per share data)
Q1 2021
Q1 2020
Change
Net sales
$2,242
$1,846
21%
Operating income
$237
$134
77%
Adjusted operating income1)
$237
$136
74%
Operating margin, %
10.6
7.3
3.3pp
Adjusted operating margin, %1)
10.6
7.4
3.2pp
Earnings per share, diluted2, 3)
$1.79
$0.86
108%
Adjusted earnings per share, diluted1, 2, 3)
$1.79
$0.88
103%
Operating cash flow
$186
$156
19%
Return on capital employed, %4)
26.3
14.5
11.8pp
Adjusted return on capital employed, %5)
26.3
14.6
11.7pp
1) Excluding costs for capacity alignment. 2) Assuming dilution when applicable and net of treasury shares. 3) Participating share awards with right to receive dividend equivalents are (under the two-class method) excluded from the EPS calculation. 4) Annualized operating income and income from equity method investments, relative to average capital employed. 5) Annualized operating income and income from equity method investments, relative to average capital employed. Non-U.S. GAAP measure, see reconciliation table.
Comments from Mikael Bratt , President & CEO
The COVID-19 pandemic is still affecting us in several ways and our first priority remains the health and safety of our employees. The industry is experiencing adverse business effects, with a supply-demand imbalance of certain input materials such as steel, chemicals and semiconductors. Temporary shortages of these materials limited the light vehicle production in the first quarter and we expect this situation to continue in the second and third quarter of this year.
In this tough environment, I am proud that the Autoliv organization delivered a strong first quarter performance where we saw high sales growth and a significant improvement in profitability compared to the first quarter in both 2020 and 2019. I am also pleased that we continued to generate a strong cash flow, that our net debt declined further, and that our leverage ratio is now back inside our target range. Our progress in the past few quarters strengthens our confidence in the journey towards our medium term targets and our opportunities to create shareholder value.
Our sales outperformed the global light vehicle production organically by more than 4pp in the quarter, despite adverse geographical mix effects as LVP mainly grew in lower CPV markets. Driven by new launches and positive vehicle mix our sales outperformed LVP significantly in all regions. Supported by new and recent vehicle launches such as Jeep Grand Cherokee L, Mitsubishi Outlander and Peugeot 308, we expect to outgrow LVP by mid-single digits in 2021.
We are still in an uncertain environment and we continue to face challenges in 2021. We expect adverse cost development from rising raw material prices throughout 2021. We remain focused on responding to sudden changes in light vehicle production with agility and flexibility. Despite increased industry wide supply chain challenges, we are pleased to be able to reiterate our full year guidance of around 20% organic sales growth and an adjusted operating margin of around 10% as we expect effects of the supply chain challenges to be balanced with positive sales mix and cost reduction actions.
We can see that our strategic initiatives gradually are yielding good results, and we expect 2021 to be a solid stepping stone towards our 2022-24 targets which include a significant growth above light vehicle production as well as a solid adjusted operating margin increase.
Inquiries: Investors and Analysts
Anders Trapp anders.trapp@autoliv.com
Henrik Kaar henrik.kaar@autoliv.com
Inquiries: Media
Gabriella Ekelund gabriella.ekelund@autoliv.com
Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on April 23, 2021 .
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SOURCE Autoliv
ALV Rankings
#1080 Ranked by Stock Gains
ALV Stock Data
Industry
Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
Sector
Manufacturing
Tags
Producer Manufacturing, Auto Parts: OEM, Manufacturing, Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
Country
Sweden
City
Stockholm
About ALV
autoliv inc., the worldwide leader in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. together with its joint ventures, autoliv has more than 80 facilities with more than 60,000 employees in 28 countries. in addition, the company has 18 technical centers in nine countries around the world, with 20 test tracks, more than any other automotive safety supplier. sales in 2014 amounted to us $9.2 billion. autoliv develop, manufacture and market airbags, seatbelts, steering wheels, passive safety electronics and active safety systems such as radar, night vision and camera vision systems. we also produce anti-whiplash systems, pedestrian protection systems and child seats. the company's leading market position in automotive safety includes a global market share of approximately 37% in passive safety and 20-25% in active safety. incorporated in the state of delaware, autoliv inc. is the result of a merger
