Autoliv Slashes Global Auto Production Outlook, Shares Drop 5.6%
ALV sits 21% above its 52-week low of $99.16 on elevated volume (2.1× avg).
Summary
Autoliv reported Q2 adjusted EPS of $2.43, missing estimates by two cents, but the real sting is a cut to its global light vehicle production forecast—now down 2.5% year over year, from a prior -1%. The stock fell 5.6% premarket. This follows a Reuters report earlier today that noted in-line profit and flat margin guidance, but the production outlook downgrade is new and signals weakening end-market demand. Full-year guidance for no organic growth was reiterated, but the deteriorating macro backdrop raises questions about that target. Watch for management commentary on the earnings call regarding regional weakness and any further cost actions.
At the time of this announcement, ALV was trading at $119.54 on NYSE in the Manufacturing sector, with a market capitalization of approximately $9.4B. The 52-week trading range was $99.16 to $132.17. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.