Autoliv q2 oper income swings to loss usd 234 mln

Financial report april - june 2020.q2 $1,048m net sales.q2 48% organic sales decline*.q2 (22.3)% operating margin.our sales declined slightly more than global lvp, which almost halved in quarter versus. a year ago.q2 operating income loss $234 million versus profit $170 million year ago.says order intake in first half year was in line with last year and supportive of prolonged sales outperformance.profitability and cash flow negatively impacted by customer plant closures and a volatile industry ramp up, and by continued high engineering activity preparing for future model launches.company compiled consensus: autoliv q2 sales seen at $1,052 million, ebit at loss $133 million.our organic sales development was better than lvp in all regions but because high safety content markets declined more than low safety content markets, sales mix was unfavorable..says operating cash flow was $128m negative in q2, but it turned positive in june.says we must balance cost reduction responses against need for capacity to manage recovery that started mid-quarter and continues in first weeks of july." ambition is to ensure that we have an adequate cost structure supporting our medium-term profitability targets also in a reduced lvp environment, although additional challenge could mean that more time is needed to reach our targets" ceo.pace and scope of demand decline coupled with a volatile ramp-up had a significant impact on our financial performance in quarter.
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