Shares of Autoliv (ALV) sank Friday as the world’s largest maker of seatbelts and airbags for cars and trucks posted worse-than-expected results and slashed its guidance because of a slowdown in auto sales.
The Sweden-based firm reported second-quarter adjusted earnings per share (EPS) of $1.87, with revenue falling 1.1% year-over-year to $2.61 billion. Both were short of forecasts.
Chief Executive Officer (CEO) Mikael Bratt said, “Light vehicle production with certain key customers following weaker sales and inventory adjustments were lower than expected in the quarter, especially in June. The lower than expected sales impacted our profitability.” However, he added that customers’ production plans for the third quarter are “normalizing,” and that last month’s pullback “should be temporary.”
Still, Autoliv cut its full-year organic sales growth outlook to around 2% from about 5% previously, and lowered its adjusted operating marginto around 9.5% to 10%, compared to the earlier projection of about 10.5%. The company anticipates that worldwide …