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Autoliv Inc ALV

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Autoliv Reports Disappointing Q2 Results, Reduces 2021 Outlook; Maintaining $93 FVE

Richard Hilgert Senior Equity Analyst

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.

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Company Profile

Business Description

Autoliv is the global leader in passive safety components and systems for the auto industry. Products include seat belts, frontal air bags, side-impact air bags, air bag inflators, and steering wheels. The Renault-Nissan-Mitsubishi alliance is the company's largest customer at 13% of 2020 revenue, with Volkswagen and Stellantis accounting for 11% each. At 31% of 2020 revenue, the Americas was Autoliv's largest geographic region, followed by Europe at 28%, China at 21%, and Japan at 10%.

Contact
Klarabergsviadukten 70, P.O. Box 70381, Section B7
Stockholm, SE-107 24, Sweden
T +46 858720600
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 64,500

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