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Autoliv (ALV) & SSAB Partner for Zero Carbon Auto Products

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Autoliv ALV and the global steel company SSAB have initiated collaborative research to develop fossil-free steel components for automotive safety products, such as airbags and seatbelts.

Through the joint venture, Autoliv will be a leading position in automotive safety products production with fossil-free steel from SSAB. The partnership aims for a new technology that will replace the traditional coking coal with hydrogen and will be the world's first fossil-free steelmaking technology, with zero carbon footprint. SSAB is enthusiastic about the venture and is starting a number of pilot projects with Autoliv that aim to reduce climate impact.

Investors should note that Autoliv is committed to becoming carbon neutral by 2030 and aims for net-zero emissions across its supply chain by 2040. The recent collaboration is testimony to its efforts to realize its sustainability goals.

A couple of days back Autoliv announced a partnership with Piaggio Group to produce airbags for powered two-wheelers to ensure rider safety. In another development, the company recently launched a footprint optimization plan in Japan to set up a modernized production facility and phase out two existing plants.

ALV Sets Three-Year Financial Targets

Autoliv released a statement ahead of its Capital Markets Day presentation today, highlighting its financial targets for 2022-2024.

The company expects to outgrow annual light vehicle production (LVP) by 4% between 2022 and 2024. Post 2024, sales are envisioned to grow organically by 4-6% per year. This estimate is based on growth in safety content per LVP and from adjacent areas, which have now been organized in the Mobility Safety Solutions product line. Content per vehicle growth is expected to be led by the continued upgrading of government regulations and crash test ratings, highly safety-focused societies, and opportunities coming from new vehicle interiors.

The company has outlined some important points, including its aim for sustainable growth, improvements in efficiency targeting for a 12% adjusted operating margin from 2022 to 2024, commitment toward shareholder value creation and cash conversion of at least 80%, and a new stock repurchase program of up to $1.5 billion over the next three years.

Autoliv, Inc. Price and Consensus

Autoliv, Inc. Price and Consensus
Autoliv, Inc. Price and Consensus

Autoliv, Inc. price-consensus-chart | Autoliv, Inc. Quote

Zacks Rank & Key Picks

Autoliv currently carries a Zacks Rank #4 (Sell).

Better-ranked peers in the same space are Goodyear GT, flaunting a Zacks Rank #1 (Strong Buy), and Genuine Parts GPC and Dorman Products DORM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Goodyear has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 77% upward over the last 60 days.

Goodyear beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 228.5%, on average. Its shares have also gained around 125.1% over a year.

Genuine Parts has an expected earnings growth rate of 27.3% for the current year. The Zacks Consensus Estimate for the current year has been revised around 5% upward over the past 60 days.

Genuine Parts beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company delivered a trailing four-quarter earnings surprise of roughly 16%, on average. Its shares have rallied around 36.5% over a year.

Dorman has an expected earnings growth rate of 36% for the current year. The Zacks Consensus Estimate for the current year has been revised 2% upward over the past 60 days.

Dorman beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 10.41%, on average. Its shares have also rallied around 23.9% over a year.


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Genuine Parts Company (GPC) : Free Stock Analysis Report

Autoliv, Inc. (ALV) : Free Stock Analysis Report

The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report

Dorman Products, Inc. (DORM) : Free Stock Analysis Report

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