Autoliv reported fourth-quarter core earnings above analyst forecasts after the supplier restored profitability by passing higher costs on to its customers, sending its shares up almost 8 percent.
Rising raw material prices have squeezed car suppliers for some time now. Autoliv CEO Mikael Bratt said the cost inflation seen by Autoliv in 2022 was the worst in three decades.
Despite this the Swedish company has been able to meet or exceed analysts estimates in the past quarters as it has continued to negotiate price hikes with automakers, which Bratt told Automotive News Europe was "new territory" for both.
"But I think we found good resolutions," he said.
The company delivers its equipment -- which includes seatbelts, airbags and other safety solutions -- across broad swathes of the auto industry.
That includes a growing number of EV startups based in Asia and the U.S. that Bratt told Automotive News Europe have turned to Autoliv because, "it is 100 percent focused on safety products."