Airbag maker Autoliv Q2 adjusted profit in line with forecast, sees stronger Q4 margin
Autoliv Inc. ALV | 0.00 |
Adds results, analyst comments, CEO comment, share move
STOCKHOLM, July 17 (Reuters) - Sweden's Autoliv ALV.N, ALIVsdb.ST, the world's largest maker of airbags and seatbelts, reported on Friday a second-quarter operating profit in line with forecasts and predicted its third-quarter margin to remain around first-half levels before improving significantly in the final quarter of the year.
Adjusted operating profit rose to $270 million from $251 million a year earlier, compared with a mean forecast of $268 million in a company-provided poll.
The adjusted operating margin increased to 9.6% from 9.3%. For the first six months of the year, the margin was 9.3%.
Autoliv said it secured customer compensation for more than 80% of tariff costs in the quarter, with its profitability being hit as a result with $7 million.
While customer compensation would have a limited impact in the third quarter, it said it expected a greater effect in the fourth, supporting a significant improvement in margins in the final quarter.
Shares - which had been hovering around 1% down ahead of the report - fell as much as 5% after its release
Pareto Securities analyst Forbes Goldman said the fall may be due to disappointment over the Q3 margin guidance.
"We would have expected a step up to Q3. As such, it guides for a pretty big step up in Q4 that... brings a little more uncertainty," the Pareto analyst said.
Jefferies said in a note to clients that the Q3 guidance "leaves quite a lot of work to do in the 4Q"
"The business environment remains uncertain but our current best estimate for the remainder of the year is to reiterate our full year 2026 guidance," Autoliv CEO Mikael Bratt said.
The company continues to expect a full-year adjusted operating margin of around 10.5% to 11%.
