Veoneer Q4 results “in line with or better than expectations” | Automotive Industry News

Supplier Veoneer said its economic success for the fourth quarter of 2019 were “in line with, or superior than, our expectations”.

Gross sales declined 15{7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0} 12 months on 12 months to US$456m with lively safety profits off 22{7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0}.

The firm booked an running reduction of $72m, slightly diminished as opposed with the $75m reduction in This fall, 2018.

Complete 12 months 2019 revenue fell to $1,902m from $2,228m in 2018.

The running reduction elevated significantly to $460m from $197m.

Complete 12 months 2020 revenue are anticipated to increase by “mid-single digits”, pushed generally by lively safety and brake devices.

“Market adjustment initiatives go on to push underlying charge construction and equilibrium sheet enhancements,” Veoneer mentioned in a assertion.

Its buy ebook at the stop of 2019 remained all-around US$19bn regardless of all-around 9{7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0} reduce world wide light car creation (LVP) assumptions for 2020 to 2025,

The 2019 order consumption was all-around $550m of normal annual revenue with lively safety accounting for about 70{7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0} or $2.5bn of item lifetime revenue.

The VNBS JV (Asia Operations) divestiture closed on 3 February, 2020, providing dollars proceeds of about $170m.

“Buy consumption for 2020 is approximated to be close to $1bn of normal annual revenue for our main electronics segment,” Veoneer mentioned.

Jan Carlson, chairman, president and CEO, extra: “Organic and natural revenue in the quarter were in line with our expectations at the commencing of the quarter, regardless of some weak spot in the LVP.

“Our running reduction was reduce than anticipated at the commencing of the quarter, generally due to continuing charge command routines across the firm, significantly with respect to purchaser reimbursements and command of our RD&E expenses. In basic, our sector adjustment initiatives are continuing to positively impression our charge construction.

“During 2020 we intend to just take more steps below our sector adjustment initiative programme. These steps contain: more partnering, more concentrating our item portfolio, examining sure purchaser contracts, and a continued focus on other charge advancement initiatives.

“We are also continuing to determine the scope and priorities of Zenuity, exactly where the Polestar 2 and the Volvo XC forty Recharge, both launching in the impending months, will be the first two vehicles with the comprehensive Zenuity program suite for collaborative driving. This is a main milestone and accomplishment for Zenuity.

“2020 is a main purchaser start 12 months for Veoneer and we are gearing up for the start of our fourth technology vision devices all through the first 50 {7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0} of the 12 months. The bulk of the launches, and importantly the greater shipping and delivery volumes, are concentrated towards the next 50 {7e488363c11ee5ef50445c8c4fa770b6e6e4f99e57faea264a05ac52abb3ffe0} of the 12 months which is when we anticipate Veoneer to return to natural and organic revenue development.

“We are basing our 2020 outlook on our main lively safety and restraint command devices organizations and our VBS US functions brake devices business, as we accomplished the divestiture of the Asian functions of our VNBS joint enterprise as component of an on-likely strategic overview of our brake business.

“In the early component of January, we participated to the Purchaser Electronics Demonstrate exactly where we showcased our hottest methods in collaborative driving, which more confirmed our selection to focus our revenue, functions and improvement on lively safety methods exactly where the driver continues to be involved.

“Buyer suggestions to our method is really favourable and we anticipate to earn substantial, lucrative orders with our concentrated, refined lively safety portfolio throughout 2020.

“For the subsequent many quarters our focus is on preparing for: successful purchaser launches in 2020 and heading into 2021, sector adjustment initiatives to go on to push efficiencies and make improvements to dollars move, and continuing to earn lucrative new business.”

Turning to the present-day coronavirus outbreak, he extra: “We are presently checking and taking acceptable steps on a every day foundation connected to the results from the coronavirus outbreak in China.

“To day we are not conscious of any instances of the virus with our staff, even so it is much too early to evaluate the results on our China business as this is an ongoing scenario.”