Autoliv, Inc. (NYSE:ALV) Q4 2022 Earnings Conference Call January 27, 2023 8:00 AM ET
Company Participants
Anders Trapp - VP, Investor Relations
Mikael Bratt - Chief Executive Officer
Fredrik Westin - Chief Financial Officer
Conference Call Participants
Rod Lache - Wolfe Research
Mattias Holmberg - DNB Markets
Vijay Rakesh - Mizuho Group
Giulio Pescatore - Exane BNP Paribas
Hampus Engellau - Handelsbanken
Colin Langan - Wells Fargo
Agnieszka Vilela - Nordea
Itay Michaeli - Citi
Anders Trapp
Welcome everyone to our Fourth Quarter and Full Year 2022 Earnings Call.
On this call, we have our President and CEO, Mikael Bratt; and our Chief Financial Officer, Fredrik Westin, and I am Anders Trapp, VP, Investor Relations.
During today's earnings call, Mikael and Fredrik will, among other things, provide an overview of the strong sales and margin development in the fourth quarter, give an update on the price negotiations, outline the expected sequential margin improvement in 2023 and the journey towards our medium-term targets, as well as provide an update on our general business and market conditions. We will then remain available to respond to your questions, and as usual, the slides are available on autoliv.com.
Turning to the next slide. We have the Safe Harbor statement, which is an integrated part of this presentation and includes the Q&A that follows. During the presentation, we will reference some non-U.S. GAAP measures. The reconciliations of historical U.S. GAAP to non-U.S. GAAP measures are disclosed in our quarterly press release available on autoliv.com and in the 10-K that will be filed with the SEC.
Lastly, I should mention that this call is intended to conclude at 03:00 PM Central European Time. So, please follow a limit of two questions per person.
I now hand over to our CEO, Mikael Bratt.
Mikael Bratt
Thank you, Anders.
Looking on the next slide. I'd like to recognize the entire team for delivering another strong quarter, which I believe reflects our strong execution culture. The fourth quarter and the full year 2022 were important steps towards our medium-term targets, as we, through price adjustments, managed to gradually offset the highest raw material cost inflation that our industry has seen in a decade.
In the fourth quarter, our organic sales growth outperformed light vehicle production significantly, as a result of price increases, product launches, and higher safety content per vehicle. Our sales in the quarter were well over $2.3 billion, despite a 7% currency headwind. We also achieved a strong profit recovery, increased the adjusted operating margin to 10% for the fourth quarter and to 6. 8% for the full year, in line with our full year guidance.