Airbag supplier Autoliv swings to $164M operating profit in Q2, but cuts 2021 forecast

STOCKHOLM — Sweden’s Autoliv, the world’s greatest producer of airbags and seatbelts, swung to a strong running financial gain through the 2nd quarter, but scaled back again its entire-yr advice as element shortages crimped automobile manufacturing.

Autoliv on Friday described an running financial gain of $164 million as opposed with a $234 million running loss in the yr-ago quarter when several automakers idled a number of months of manufacturing thanks to the coronavirus pandemic.

Overall revenue surged ninety three per cent to $2. billion. The company created web profits of $one zero five million as opposed with a $174 million loss a yr ago.

Airbag profits doubled to $1.3 billion when seatbelt company grew eighty one per cent to $712 million.

Autoliv is the first important worldwide automobile provider to put up its 2nd-quarter final results, with a number of far more scheduled to report over the subsequent number of months.

Although the need restoration from the market plunge in the early months of the pandemic has been strong, a worldwide lack of semiconductors has strike the automotive sector difficult, forcing several automakers and their suppliers to curtail manufacturing strategies.

CEO Mikael Bratt said in a statement that reduce-than-predicted light-weight automobile manufacturing dinged the company’s revenue and profitability in the quarter.

“The lower visibility of these variations prevented us from using furloughs effectively to mitigate the effects of the reduce buyer need,” he said.

“Although the scenario enhanced towards the finish of the quarter, we however assume offer disruptions to impression (light-weight automobile manufacturing) negatively in the third quarter with some improvement in the fourth quarter.”