Autoliv Hit Sales and Margin Records in Q2

Autoliv (NYSE:ALV) reported its second-quarter results on July 18, announcing net sales that were up 4% year over year to a record $2.7 billion, a 14% increase in adjusted operating income to $251 million, and an 80 basis point improvement in adjusted operating margin to 9.3%. The company increased its quarterly dividend to $0.85 per share and reaffirmed its annual stock repurchase ambitions of $300 million to $500 million.The company currently estimates its tariff exposure will roughly double to around $200 million. Most of its cost increases were offset by proactive compensation agreements with customers and supply chain adjustments. The company reported that 80% of its tariff costs during Q2 were recovered, with the remainder is expected to be recouped during 2025, limiting the operating margin impact to 35 basis points. Its strategy leverages its diversified geographic footprint, with five U.S. plants and compliance with USMCA (United States-Mexico-Canada Agreement) sourcing to minimize its tariff exposure.Autoliv's demonstrated ability to offset major tariff headwinds through commercial and operational levers reinforces its pricing power and agility, solidifying its profit outlook amid a volatile global trade environment.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool