Autoliv, Inc. (ALV) | Q2 2023 Earnings Call Transcript Summary

Autoliv's second quarter figures for 2023 saw a significant increase in net sales, with a 27% rise to $2.6 billion compared to the previous year. The company also reported a gross profit increase of $121 million or 37%, bringing gross profits up to $447 million. This growth was driven by a combination of price increases, volume growth and lower costs for premium freight, although it was partly offset by wage inflation and increased personnel costs. The adjusted operating income saw a considerable increase from $124 million to $212 million, with the adjusted operating margin increasing by 2 percentage points to 8%.

The company's cash flow also showed strong performance, with operating cash flow increasing to $379 million due to improved adjusted operating income and a reversal of negative working capital effects. Additionally, trade working capital decreased by $117 million, mainly driven by higher accounts payable and lower inventories. Autoliv's full-year indication for operating cash flow remains unchanged at $900 million.

Finally, Autoliv's debt leverage ratio improved to 1.3 times compared to the previous quarter, as a result of lower net debt and higher 12-month trailing adjusted EBITDA. The company's stock repurchase program authorizes them to repurchase up to $1.5 billion between January 2022 and the end of 2024, and they have currently repurchased 2.4 million shares for a total of $197 million.