“Labour, logistics and energy will become more important in 2023 as inflationary factors not related to raw materials will become more important,” said the CFO.
The company is already in talks with customers so they can pass on the costs associated with it, he added.
Despite the company’s track record of dealing with turbulence, it was vulnerable to volatile light vehicle production (LVP) and sudden lockdowns in China.
Westin said Autoliv struggled at the end of the fourth quarter, with the re-opening of China slowing fourth-quarter sales, an impact that continued into the first quarter and is expected to ease.
The world’s largest manufacturer of airbags and seatbelts expects pre-adjusted earnings before interest and taxes (EBIT) of $224.8 million, up from $177 million a year earlier to $233 million It exceeded the estimates of analysts who had been
Autoliv expects organic sales growth to increase by 15% in 2023 and adjusted operating margin to rise from 8.5% to 9.0%, up from 6.8% last year.
blow of inflation
Inflation has also hit Autoliv’s employees, with Westin saying the company has had to support employees in certain countries in Eastern and Western Europe and some in North America.
The CFO expects this to continue, with the first quarter outperforming the other quarters as ongoing bargaining deals, minimum wage hikes and overall rising labor costs continue to strain the company. He said he expects it to be less profitable.
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