Autoliv stock dives after big profit miss and lowered outlook, citing cost inflation and weaker LVP growth

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The U.S.-listed shares of Autoliv Inc. ALV, -0.21% dove 6.8% in premarket trading Friday, after Sweden-based the automotive safety systems maker report a first-quarter profit that fell well below expectations and cut its full-year outlook, citing the negative impact of increased cost inflation on an already distressed supply chain. Net income fell to $83 million, or 94 cents a share, from $157 million, or $1.79 a share, in the year-ago period, amid higher raw materials costs. Excluding nonrecurring items, adjusted earnings per share fell to 45 cents from $1.79, missing the FactSet consensus of $1.07. Sales dropped 5.3% to $2.12 billion, below the FactSet consensus of $2.15 billion. For 2022, the company cut its guidance for organic sales growth to around 12% to 17% from around 20%, and for operating cash flow to around $750 million to $850 million from around $950 million, as the company lowered its growth estimate for global light vehicle production to flat to up 5% from up around 9%. The stock has tumbled 25.0% year to date through Thursday, while the S&P 500 SPX, -1.48% has lost 7.8%.

This article was originally published by Marketwatch.com. Read the original article here.

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