Autoliv (ALV) shares surged Friday after the world’s largest maker of airbags and seatbelts reported strong third-quarter results, despite a drop in light vehicle production amid a global slowdown in the auto sector.

Autoliv posted third-quarter adjusted earnings per share (EPS) of $1.84, with revenue declining 0.8% from a year ago to $2.56 billion. Both figures were in line with analysts' estimates compiled by Visible Alpha.

Autoliv Faces 'Tough Environment'

CEO Mikael Bratt said that despite a “tough environment,” the company “managed to outgrow" light vehicle production, "enabling almost unchanged sales and operating income.” He added Autoliv had substantial outperformance in Europe and Asia, except for China.

Bratt noted the company expects market share gains with domestic Chinese original equipment manufacturers (OEM) in the coming years. 

Autoliv said that based on customer call-outs, it expects light vehicle production will decline 3% globally for the year. It now anticipates organic sales growth of about 1%, down from its earlier outlook of approximately 2%.

Autoliv shares were up over 5% at $98.84 in afternoon trading Friday, though they remained lower for 2024.