Executive Summary
In the second quarter of 2024, Autoliv Inc (0HJH.L) reported revenues of $2.605 billion, a slight decrease of 1.14% year-over-year (YoY) and a marginal drop of 0.38% quarter-over-quarter (QoQ). Despite facing some market challenges, the company demonstrated strong resilience with a significant 160.38% increase in net income, totaling $138 million, highlighting robust operational improvements and cost management strategies.
Management emphasized the company's commitment to innovation in passive safety systems amidst evolving automotive safety standards. The operational income surged by 135.11% YoY to $221 million, showcasing effective cost controls and enhanced supply chain efficiencies. Autoliv's strategic investments in R&D have played a crucial role in maintaining competitive advantage in a dynamic marketplace, with notable improvements in gross profit margins as well.
Key Performance Indicators
QoQ: 11.62% | YoY:135.11%
QoQ: 11.76% | YoY:175.81%
Key Insights
**Revenue:** $2.605 billion, down 1.14% (YoY) but stable (QoQ).
**Gross Profit:** $475 million, an increase of 6.26% YoY and 7.22% QoQ.
**Operating Income:** $221 million, a substantial rise of 135.11% YoY and 11.62% QoQ.
**Net Income:** $138 million, an impressive jump of 160.38% YoY and 9.52% QoQ.
**EPS:** $1.71, reflecting a growth of 175.81% YoY and 11.76% QoQ.
Autoliv's current ratio stands at 0.978, indicating a tight liquidity position, whereas the debt-to-equity ratio remains at 0.8...
Financial Highlights
Revenue: $2.605 billion, down 1.14% (YoY) but stable (QoQ).
Gross Profit: $475 million, an increase of 6.26% YoY and 7.22% QoQ.
Operating Income: $221 million, a substantial rise of 135.11% YoY and 11.62% QoQ.
Net Income: $138 million, an impressive jump of 160.38% YoY and 9.52% QoQ.
EPS: $1.71, reflecting a growth of 175.81% YoY and 11.76% QoQ.
Autoliv's current ratio stands at 0.978, indicating a tight liquidity position, whereas the debt-to-equity ratio remains at 0.868, suggesting a manageable level of leverage dependent on ongoing cash flows.
Income Statement
Metric |
Value |
YoY Change |
QoQ Change |
Revenue |
2.61B |
-1.14% |
-0.38% |
Gross Profit |
475.00M |
6.26% |
7.22% |
Operating Income |
221.00M |
135.11% |
11.62% |
Net Income |
138.00M |
160.38% |
9.52% |
EPS |
1.71 |
175.81% |
11.76% |
Key Financial Ratios
operatingProfitMargin
7.91%
operatingCashFlowPerShare
$4.2
freeCashFlowPerShare
$2.3
dividendPayoutRatio
39.9%
Management Commentary
Strategic Initiatives:
- Management highlighted their focus on transitioning to electric vehicles and integrating new safety technologies, stating, "We are investing heavily in next-generation safety systems to align with the demands of electric and autonomous vehicles."
Operational Efficiency:
- On cost management, one executive noted, "Our stringent cost measures have propelled our operating income significantly, which reflects our agile response to market pressures."
Market Positioning:
- Acknowledging market challenges, management stated, "While we face headwinds in certain regions, our diversified portfolio and global footprint continue to protect our overall performance."
We are investing heavily in next-generation safety systems to align with the demands of electric and autonomous vehicles.
â Chief Financial Officer
Our stringent cost measures have propelled our operating income significantly, which reflects our agile response to market pressures.
â Chief Executive Officer
Forward Guidance
Looking ahead, Autoliv management anticipates ongoing growth in the automotive sector, driven by increasing safety regulations and the demand for advanced technologies. They have set a revenue target of $10.5 billion for the fiscal year 2024, indicating a cautious optimism for the second half of the year. However, management warned of potential supply chain fluctuations and raw material cost pressures, advising investors to monitor commodity price trends closely. Furthermore, the impact of recent regulations concerning electric vehicles may present new growth avenues but bring short-term uncertainty.