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 $1.20. This missed the FactSet sell-side consensus estimate of $1.39 by $0.19 but was $2.60 above the COVID-19-affected loss per share of $1.40 reported last year. The microchip shortage, which caused sporadic customer production changes, and higher raw material costs both contributed to the underperformance. Revenue nearly doubled from the year-ago period, up $1.0 billion to $2.0 billion, due to pandemic-related industrywide shutdowns last year. Excluding the positive currency effect, organic revenue was up 85%, outperforming a 52% increase in global light-vehicle production by 33 percentage points on a strong launch schedule of new business.