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July 16, 2021, 6:20 a.m. EDT

Autoliv stock sinks toward 4-month low after earnings miss, citing chip shortage and rising costs

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By Tomi Kilgore

Shares of Autoliv Inc. /zigman2/quotes/207149618/composite ALV -0.89% sank 6.8% toward a four-month low in premarket trading Friday, after the Sweden-based maker of automotive safety systems reported second-quarter profit and sales that missed expectations and cut its full-year outlook, citing the continued impact of the COVID-19 pandemic, the negative effect of the semiconductor shortage and continued rise in raw material prices. The company swung to net income of $104 million, or $1.19 a share, from a loss of $175 million, or $2.00 a share, in the year ago period. Excluding nonrecurring items, adjusted earnings per share came to $1.20, below the FactSet consensus of $1.38. Sales jumped 93.0% to $2.02 billion, but was just shy of the FactSet consensus of $2.04 billion. The company lowered its 2021 net sales growth guidance to 20% to 22% from "around 23%." The company said prices of some key commodities has increased by more than 20% in the past three months, and expects full-year raw material costs to be a 130 basis point headwind to operating margin. "Supply shortage of semiconductors resulted in a Q2 [light vehicle production] that was 8% lower than what was expected at the beginning of the quarter, and 8% lower than th efirst quarter (according to IHS Markit, June 2021)," said Chief Executive Mikael Bratt. The stock has gained 3.1% year to date through Thursday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.18% has advanced 16.1%.

/zigman2/quotes/207149618/composite
US : U.S.: NYSE
$ 95.53
-0.86 -0.89%
Volume: 756,328
Dec. 1, 2021 4:00p
P/E Ratio
16.43
Dividend Yield
2.68%
Market Cap
$8.43 billion
Rev. per Employee
$122,089
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/zigman2/quotes/210599714/realtime
US : S&P US
4,513.04
-53.96 -1.18%
Volume: 3.04B
Dec. 1, 2021 5:04p
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