Executive Summary
Autoliv Inc (0HJH.L) reported revenues of $2.555 billion in Q3 2024, a slight decline of 1.58% year-over-year and a 1.92% decrease quarter-over-quarter. Despite this dip in revenue, the company demonstrated a strong net income of $138 million, reflecting a year-over-year increase of 2.99%. This performance is indicative of Autoliv’s strategic focus on profitability amid challenging market conditions, as reflected in their steady operating income margins and manageable debt levels.
Management expressed optimism during the earnings call regarding the company’s resilience and commitment to innovation in passive safety systems, forecasting continued demand, especially within electric vehicle segments. Key investment drives for Autoliv appear strategic investments in technology and sustainability initiatives, aligning with industry trends towards increased electric vehicle penetration and enhanced safety features.
Key Performance Indicators
Revenue
2.56B
QoQ: -1.92% | YoY:-1.58%
Gross Profit
460.00M
18.00% margin
QoQ: -3.16% | YoY:-1.08%
Operating Income
226.00M
QoQ: 2.26% | YoY:-2.59%
Net Income
138.00M
QoQ: 0.00% | YoY:2.99%
EPS
1.74
QoQ: 1.75% | YoY:10.13%
Revenue Trend
Margin Analysis
Key Insights
- **Revenue:** $2.555 billion, down 1.58% YoY and down 1.92% QoQ.
- **Gross Profit:** $460 million, which translates to a gross margin of 18.0% - a marginal decrease from the previous periods but consistent with industry averages.
- **Operating Income:** $226 million, with an operating margin of 8.8%, showing slight improvement QoQ.
- **Net Income:** $138 million, equating to an EPS of $1.74, a notable 10.13% improvement YoY.
- **Total Debt:** $2.384 billion, with a debt-to-equity ratio of 0.985, demonstrating prudent management of leverage.