UPDATE 2-Autoliv says to meet or exceed mid-term growth target
(Adds detail on cost inflation and background from paragraph 4)
STOCKHOLM, June 12 (Reuters) - Sweden's Autoliv said on Monday it expected to meet or exceed its medium-term business growth target while reiterating all of its financial goals for this year, a week after announcing around 8,000 job cuts to save costs.
The world's largest maker of airbags and seatbelts said that due to price increases to offset high cost inflation, its business expansion was on track to significantly exceed growth in light vehicle production (LVP) by four percentage points per year.
In a statement ahead of its U.S. investor day, Autoliv said when adjusting for those price increases, it would meet or exceed that growth target set for 2022 to 2024.
Abnormally high cost inflation has squeezed Autoliv and other car industry suppliers for the past few years, prompting tough price increase negotiations with their customers.
As raw material prices have since started to stabilise and the availability of semiconductors has started to return, LVP has also slowly started to recover, a metric Autoliv is highly dependent on.
In addition to reiterating its medium and long term targets, Autoliv also confirmed its full-year targets of an adjusted operating margin of about 8-5%. (Reporting by Marie Mannes, additional reporting by Agata Rybska, editing by Terje Solsvik and Emelia Sithole-Matarise)
