Swedish safety component supplier Autoliv reported a strong third-quarter profit on Friday and said its operating margin would trend toward the upper end of expectations.
The Stockholm-based company said its adjusted earnings before interest and taxes (EBIT) rose to $171 million from $99 million a year earlier. It now believes its adjusted operating margin for the full year will come in toward the high end of its previously announced 6 to 7 percent range.
“For the rest of 2022, we foresee a more stable light vehicle production level,” Autoliv CEO Mikael Bratt told Automotive News Europe. “We are also catching up on the price adjustments [with automakers] for the cost pressure that we have felt.”
To date Autoliv, the world’s largest producer of airbags and seat belts, has secured agreements in 90 percent of its raw materials-related pricing discussions, according to a report from U.S. investment bank Robert W. Baird & Co.
Bratt said that Autoliv benefitted from cost cuts made during the quarter and added that it is being fiscally cautious particularly as it adds people to keep pace with an expected rise in vehicle output.
“We are making sure that we don’t add more people than absolutely necessary as we see some volumes come back,” he said.
When asked about potential trouble spots for the final quarter of the year, Bratt pointed to continued inflationary pressure, rising energy costs, ongoing component shortages and the tight labor market.
Autoliv’s passive safety systems, which include airbags and seat belts, generates the bulk of company earnings while its electronics business makes radar products, vision systems and advance driver assistance software.
Autoliv ranks No. 30 on the Automotive News Europe list of the top 100 global suppliers, with worldwide sales to automakers of $8.2 billion in 2021.
Reuters contributed to this report