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Veoneer optimistic about second half of 2021 | Automotive Trade Information
Veoneer has introduced first quarter monetary outcomes which it stated had been “in step with inside expectations regardless of provide chain challenges”.
Gross sales rose 17% 12 months on 12 months to US$419m however working money movement was destructive $110m.
Outlook for the complete 12 months was unchanged from This autumn, 2020 with gross sales development anticipated to exceed 25%.
The working loss is predicted to enhance in 2021 from 2020 as order consumption this 12 months is predicted to extend.
The provider stated gross sales outperformed world mild automobile manufacturing by 4% in Q1 2021 and it expects outperformance within the “mid-teens” for the complete 12 months.
It added semiconductor provide shortages had created “trade supply and price challenges”.
There have been vital regional combine shifts in LVP throughout the quarter with weaker North America and Europe offset by a stronger China.
Jan Carlson, chairman, president and CEO, stated: “Disruptions from semiconductor shortages, and our continued construct up for development, added additional prices which we had been capable of offset by efficiencies.
“We took a cautious view to the LVP to start with of the quarter which proved to be principally appropriate. Whereas world development was solely barely decrease than the IHS January forecast, the regional combine shifted considerably. LVP in North America and Europe, which make up greater than 75% of Veoneer’s gross sales, had been down near 14% and three% respectively. China, which made up 28% of the LVP within the quarter, however solely 13% of Veoneer gross sales, was up by 11%, all in comparison with IHS’ expectation from the start of the quarter. Our content material per automobile as in comparison with the LVP is at the moment greater than 4 instances larger in Europe and North America than in China, subsequently this geographic combine shift had a short lived opposed impact on our gross sales development and gross margin.”
“We anticipate disruptions will proceed throughout the second quarter after which progressively lower, we subsequently foresee the optimistic results on our working [results] from our gross sales development primarily taking impact within the second half of the 12 months.”