Veoneer sales slip in Q4

Veoneer reported its fourth quarter profits fell 1% to US$449m although “active safety net” product sales rose 18%.

Functioning money movement improved $85m to $8m and funds equilibrium was $424m.

Profits outperformed international gentle car manufacturing (LVP) by 12% for Q4 and 16% for full calendar year 2021.

The buy reserve at the finish of 2021 was $14bn and get consumption for 2021 was $455m of typical yearly profits with lifetime profits of $2.1bn in which energetic security was 60%.

On 4 Oct, Veoneer achieved a definitive arrangement for SSW Companions and Qualcomm to obtain Veoneer.

“Veoneer is currently concentrating on supplying details relating to the on-heading acquisition process and is no for a longer period giving a ahead looking outlook and will not be holding an earnings connect with,” the provider reported in a statement.

The adverse income effect from semiconductor connected shortages was estimated to have been around $55m for the quarter.

Stockholders authorised the merger agreement in December and by the finish of January the offer had acquired the required regulatory approvals in the United States, Germany, France and Italy. In addition, SSW and Qualcomm were consulting other regulators relating to the merger.

The earliest date to close the deal according to the merger settlement is in early April 2022.

Veoneer mentioned it experienced been informed that, when the acquisition of Veoneer closes, SSW intends to offer Arriver to Qualcomm and get started the formal method to uncover a lengthy term owner or owners for Veoneer’s on-going businesses.

Jan Carlson, chairman, president and CEO, reported: “The fourth quarter was an additional period of strong functionality by the entire Veoneer team. During this time of unparalleled internal and external transform our staff managed to produce strong results and keep centered on the day to working day functions which continues to be challenged by semiconductor similar shortages and the consequences of the COVID-19 pandemic.

“Despite staying confined by semiconductor related shortages our income continued to considerably outperform the gentle auto output and our operating reduction, having into thought all around $20m of merger connected expenses, improved appreciably from the exact same time period a 12 months back.

“In common our monetary management continues to be pretty potent and in the fourth quarter we managed to realize optimistic running dollars flow.

The merger method with SSW/Qualcomm is progressing nicely.”