Autoliv Inc., the leading automotive safety systems company, saw its stock price plummet by 5.15% in pre-market trading on Friday, January 31st, 2025. The selloff was driven by the company's announcement that dealer inventory reductions by major customers led to underperformance in the Americas region.

Despite this setback, Autoliv reported several positive developments in its fourth-quarter financial results. The company achieved record operating profit, margins, and earnings per share (EPS) for the quarter. Additionally, Autoliv provided guidance for the full year 2025, projecting around 2% organic sales growth and an adjusted operating margin of 10-10.5%.

Autoliv acknowledged that 2025 is expected to be a challenging year for the automotive industry, with a slight decline in light vehicle production and continued geopolitical risks. However, the company remains optimistic about its strong order intake with domestic OEMs in China, which is anticipated to lead to a record number of new product launches in the region, potentially improving Autoliv's performance in China.