Analyst Note| Richard Hilgert |
Narrow moat Autoliv, supplier of air bags, seat belts, and steering wheels to the global auto industry, reported second-quarter earnings per share before special items of $0.90, well above the $0.34 FactSet consensus EPS but $0.30 below $1.20 reported last year. Several headwinds contributed to the shortfall, including sporadic customer production from the Ukraine crisis, the chip crunch, and China lockdowns as well as higher raw material costs, increased logistic expense, and rising wages. Revenue increased 3% versus the year-ago period, to $2.1 billion. Excluding negative currency effect in the quarter, organic revenue rose 8%, outperforming a 1% increase in global light-vehicle production by 7 percentage points due to launched new business, partially offset by customer call-offs.