Although leverage ratio currently is above our target range, we remain committed to our share repurchase ambitions over time.
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We are adjusting our full year 2022 indication to a narrower range, reflecting our actions and the shorter time span remaining of the year. Cost reductions and footprint initiatives are on plan and include capacity alignments and footprint optimizations. Therefore, we continue to step up our cost control measures. However, we are also making sure we are agile and prepared for a more adverse market development should that be necessary. Recent developments in supply chains, customer production plans, raw material prices and our cost recovery discussions are encouraging, and we believe we are well prepared for an improved market development. Discussions continue where we aim for prices that reflect changes in the cost environment and a contract structure that is flexible and allows for broader and faster adjustments to future changes in the business environment. It is encouraging that we are making progress in compensation from our customers in the form of sustainable price increases. In a quarter where we saw continued low and volatile LVP, Autoliv managed to outperform global LVP significantly, despite negative regional mix effects. A dividend of $0.64 per share was paid and 0.30 million shares were repurchased in the quarter. a year earlier, leading to a leverage ratio of 1.7x. Net debt* increased and EBITDA declined vs.
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Negative Q2 operating cash flow, expected to recover in the second half. Operating cash flow was negative $51 million and free cash flow* was negative $190 million impacted by adverse effects from working capital. Return on capital employed was 13.1% and adjusted return on capital employed* was 13.3%. Commercial recoveries relating to periods prior to second quarter 2022 and the patent litigation settlement combined amounted to around $50 million in the quarter. Operating margin and adjusted operating margin* declined by 2.2pp. However, profitability declined due to higher raw material costs, currency movements, low and volatile LVP and lockdowns in China. Stronger than expected performance in June driven by price increases, LVP recovery and a patent litigation settlement led to a better-than-expected operating profit for the quarter. The outperformance was mainly due to price increases and new product launches. Sales increased organically* by 8%, which was around 7pp better than global LVP which increased by around 1% (IHS Markit July 2022). Key business developments in the second quarter of 2022 Q2 2022: Progress in customer price discussionsĪround 5% negative FX effect on net salesĪround 6.0%-7.0% adjusted operating marginĪround $750-850 million operating cash flow
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