Autoliv profit tops forecast as car production recovers from pandemic blow
- 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.
- The auto industry was thrown into turmoil last spring when the spread of COVID-19.
STOCKHOLM: Sweden's Autoliv reported higher than expected quarterly earnings on Tuesday, boosted by a recovery in car production following a plunge due to the coronavirus pandemic.
Autoliv, the world's largest producer of airbags and seatbelts, said it expects around 20% organic sales growth and an adjusted operating margin of about 10% 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," Chief Executive Mikael Bratt said in a statement.
Autoliv reported a fourth-quarter operating profit of $307 million compared with a $229 million profit in the year-ago quarter and a mean forecast of $283 million based on a poll of analysts published by the company.
On an adjusted basis, operating earnings were $311 million, up from $242 million a year earlier, the company said. Quarterly like-for-like sales grew 12.7%.
The auto industry was thrown into turmoil last spring when the spread of COVID-19 and related lock-downs in many countries forced a temporary stop to car production across large parts of the globe.
Autoliv, which made a loss in the second quarter of 2020 despite deep spending cuts, has along with the rest of the industry seen a gradual recovery since then.
Shares in the firm, which rivals ZF and Joyson Safety Systems, rose 5.0% at 1131 GMT.
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