Autoliv Provides Tepid 3Q Forecast After Delivering Better Than Expected 2Q Earnings

Autoliv AB

announced 8.6 percent growth in profit for the second quarter helped by 12.5 percent sales uptick. Though its adjusted earnings came in above the Street analysts' estimations, its revenue fell short of their predictions modestly. Also, the company has guided lower operating margin for the third quarter than the second quarter. The company's net income was $148.4 million versus $136.7 million representing a YOY increase of 8.6 percent. Similarly, its earnings also advanced 8.4 percent to $1.68 a share from $1.55 a share in the year-ago quarter. Its adjusted earnings also grew 8.0 percent to $1.75 a share from $1.62 a share in the comparable period. This was $0.04 a share higher than the Street analysts' predictions of $1.71 a share. Autoliv's net sales grew 12.5 percent to $2.6 billion from $2.3 billion in the previous year quarter. Analysts were looking for $2.64 billion revenue. The company's Chairman, President and CEO, Jan Carlson, commented: I am pleased that we are able to capture significant future business and balance further investments for growth with healthy full year operating margins within our long-term target range of 8-9%, while also delivering on our quarterly margin guidance despite slightly lower than expected organic growth, mainly from a lower global light vehicle production." Going forward, Autoliv expects organic sales to grow around 6 percent in the third quarter. Similarly, the company guided adjusted operating margin of approximately 7.5 percent, which is lower than the 8.6 percent achieved in the second quarter. For the full year, the company sees organic sales growth of about 7 percent and an adjusted operating margin of over 8.5 percent. Following the news, the stock traded down by 7.7 percent in the pre-market trading on Friday.