Swedish security element provider Autoliv reported a robust third-quarter revenue on Friday and stated its working margin would pattern towards the higher finish of expectations.

The Stockholm-based firm stated its adjusted earnings earlier than curiosity and taxes (EBIT) rose to $171 million from $99 million a 12 months earlier. It now believes its adjusted working margin for the total 12 months will are available in towards the excessive finish of its beforehand introduced 6 to 7 % vary.

“For the remainder of 2022, we foresee a extra steady gentle automobile manufacturing degree,” Autoliv CEO Mikael Bratt informed Automotive Information Europe. “We’re additionally catching up on the value changes [with automakers] for the price stress that we’ve felt.”

Thus far Autoliv, the world’s largest producer of airbags and seat belts, has secured agreements in 90 % of its uncooked materials-related pricing discussions, in line with a report from U.S. funding financial institution Robert W. Baird & Co.

Bratt stated that Autoliv benefitted from value cuts made through the quarter and added that it’s being fiscally cautious notably because it provides individuals to maintain tempo with an anticipated rise in automobile output.

“We’re ensuring that we do not add extra individuals than completely mandatory as we see some volumes come again,” he stated.

When requested about potential hassle spots for the ultimate quarter of the 12 months, Bratt pointed to continued inflationary stress, rising power prices, ongoing element shortages and the tight labor market.

Autoliv’s passive security techniques, which embrace airbags and seat belts, generates the majority of firm earnings whereas its electronics enterprise makes radar merchandise, imaginative and prescient techniques and advance driver help software program.

Autoliv ranks No. 30 on the Automotive Information Europe record of the highest 100 international suppliers, with worldwide gross sales to automakers of $8.2 billion in 2021.

Reuters contributed to this report