Q1 2020: Perhaps, the end of the beginning
Financial highlights Q1 2020:
- $1,846m net sales
- 13% organic sales decline*
- 7.3% operating margin
- 7.4% adj. operating margin*
- $0.86 EPS – a decrease of 32%
- $0.88 adj. EPS* – a decrease of 27%
Full year 2020 indications
No indications will be provided until effects of COVID-19 pandemic can be better assessed
Key business developments in the first quarter of 2020
Organic sales decline* was 11pp better than global light vehicle production, with all regions outperforming LVP. Order intake share remained high and supportive of prolonged sales outperformance.
Gross margin and adjusted operating margin* were on similar levels as last year despite the global LVP decline, supported by no costs related to social unrest in Matamoros, Mexico, in 2020, cost reductions in R,D&E, S,G&A, production overhead and raw materials. Operating cash flow and free cash flow* were above Q1’19 levels.
Securing a strong liquidity position by drawing down on our Revolving Credit Facility. Liquidity further supported by reducing or suspending non-critical expenses and investments and by cancelling the dividend after the quarter closed.
*For non-U.S. GAAP measures see enclosed reconciliation tables. All change figures in this release compare to the same period of previous year except when stated otherwise.
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SOURCE: Autoliv
