Autoliv Inc. (NYSE: ALV) has released its Q1 2021 results in which it reported net sales of $2.242 million with 17.9% organic sales growth.
Autoliv reports a strong Q1 2021 with a 17.9% growth in organic sales.
The solid organic growth was boosted by exceptional performance across all regions. The 17.9% growth in organic sales outperformed global LVP by over 4pp despite the hostile geographical mix impacts with LVP growing strongly in low CPV markets. Interestingly, all regions outdid LVP by 6 to 23 pp, driven by the encouraging vehicle mix and launches. In addition, the company reported robust operating income improvement, which was drive by continued cost control and strong sales growth. Autoliv also increased operating cash flow to $186 million, while free cash flow increased to $93 million.
Mikael Bratt, the company’s CEO and President, said that they are still feeling the impact of the COVID-19 pandemic, and priority remains with ensuring the safety and health of employees. Bratt said that despite the hostile environment, the company had a strong quarter with high sales growth and considerable profitability improvement relative to Q1 2020 and Q1 2019.
Autoliv building new steering wheel factory
Recently the company revealed that it would build a new steering wheel factory in Aguascalientes, Mexico. The project accelerates Autoliv’s automation and digitization strategy since it will include ultramodern manufacturing processes. Once operational, the 30,000 sqm/322,000 sq. ft facility will employ around 3,000 people.
Autoliv Americas President Kevin Fox said, “This new facility, along with our Matamoros, Mexico facility will allow us to continue to provide world-class support to our customers. This investment will increase capacity, but it will also allow us to optimize our manufacturing processes at both facilities and it will create exciting opportunities for our team members in Mexico.”