Autoliv sees ‘around 15%’ organic sales growth in FY23

Mikael Bratt, Autoliv President & CEO, said: "We expect an increase in overall product launches in 2023. This development contributes to building an even stronger platform for our long-term success. We remain confident in our ability to reach our medium term adjusted operating margin target of around 12%, under the framework previously communicated. The strong 2023 sales growth we foresee, together with the actions we undertook in 2022, creates a solid base for a significant improvement in our adjusted operating margin. This is despite the challenges from inflation impacting our non-raw material costs such as labor, logistics and energy. We continue to execute on productivity and cost reduction activities to offset this, and we have also initiated discussions with our customers on non-raw material cost inflation. We believe price adjustments will offset the non-raw material cost inflation, with small positive effects in the first quarter and gradually larger positive effects as the year progresses. Our FY 2023 indication is an organic sales growth of around 15% and an adjusted operating margin of around 8.5-9%, with Q1 2023 adjusted operating margin around 5%. Our positive cash flow trend should allow for increasing shareholder returns."