Autoliv s fourth-quarter profit rises 34% as car production recovers from pandemic blow
Reuters
Autoliv
STOCKHOLM Sweden s Autoliv reported higher than expected quarterly earnings on Tuesday, boosted by a recovery in car production following lockdowns to fight the spread of the coronavirus pandemic.
Autoliv, the world s largest producer of airbags and seatbelts, said it expects around 20 percent organic sales growth and an adjusted operating margin of about 10 percent in 2021. Although the pandemic is not yet behind us, I am confident that our performance in the second half of the year shows that we have built a solid platform to move towards our mid-term targets, CEO Mikael Bratt said in a statement.
$2.19 adjusted EPS - an increase of 19%
Full year 2021 indications
Around 20% organic sales growth
Around 10% adjusted operating margin
Key business developments in the fourth quarter of 2020
Record net sales, for our passive safety business. Sales increased organically by 12.7%, outperforming global LVP by almost 11pp. All major regions outperformed LVP by around 9-13pp. Full year 2020 sales declined organically by 12% compared to our guidance of around 13% decline. Order intake share for the full year 2020 was around 45%.
Record operating income, driven by continued cost control and demand recovery. Adjusted operating margin improved by 1.3 pp to a ten year high of 12.4% despite around $55m in higher warranty and recall accruals. RoCE improved to 33.7% and RoE to 33.3%. Full year 2020 adjusted operating margin was 6.5% vs. our guidance of around 6%.
Sales increased organically by 12.7%, outperforming global LVP by almost 11pp.
All major regions outperformed LVP by around 9-13pp. Full year 2020 sales declined organically by 12% compared to Autoliv s guidance of around 13% decline.
Order intake share for the full year 2020 was around 45%. Our focus throughout the COVID-19 crisis has been the health and safety of our employees and to come out of it as a stronger company, said Autoliv president & CEO, Mikael Bratt. Although the pandemic is not yet behind us, I am confident our performance in the second half of the year shows we have built a solid platform to move towards our mid-term targets.
Operator
Ladies and gentlemen, thank you for standing by and welcome to the Fourth Quarter 2020 Autoliv Earnings Conference Call. [Operator Instructions]. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I must advise you that this conference is being recorded today.
I would now like to hand the conference to speaker today, Mr. Anders Trapp, Vice President and Head of Investor Relations. Please go ahead.
Anders Trapp
Vice President and Head of Investor Relations
Thank you, Alicia. Welcome everyone to our fourth quarter and full year 2020 financial result earnings presentation. On this call, we have our President and CEO, Mikael Bratt; and our Chief Financial Officer, Fredrik Westin. And I m Anders Trapp Vice President of Investor Relations.
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