Veoneer: Financial Report July – September 2021

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STOCKHOLM, October 26, 2021 / PRNewswire / – Veoneer, Inc. (NYSE: VNE and SSE: VNE-SDB)

Financial Summary – Q3’21

  • Active Safety Boosts Organic Sales Growth Despite 20% YoY Decline in Light Vehicle (LVP) Production
  • Net sales $ 391 million, Net sales increase of 5%, Organic sales1 3% year-on-year increase
  • Net active security sales increase 27%, organic sales increase 24% year-on-year
  • Operating cash flow (120) million dollars
  • Cash balance $ 420 million
  • Veoneer is currently focused on providing information relating to the current acquisition process and is no longer providing forward-looking perspectives and will not hold a call for results.

Company highlights

  • Final merger agreement entered into under which SSW and Qualcomm will acquire Veoneer, terminated merger agreement with Magna International Inc.
  • Organic sales growth outperformed Global LVP by around 23 percentage points in Q3’21
  • Semiconductor supply chain shortages continue to create production, delivery and cost challenges for the industry
  • Temporary inventory build-up had a negative impact on cash flow, the effect is expected to reverse in Q4
  • The ADAS and AD Arriver software unit performed the first public demonstration running on the Snapdragon Ride platform, at the IAA, Munich with positive comments and reviews
  • Veoneer Announced As Key Active Safety Contributor For Mercedes S-Class With 4th Generation Vision And Perception Software Enabling Level 3 Autonomous Driving
  • Order intake over the last twelve months (LTM) was greater than $ 500 million average annual sales at the end of Q3’21

Key figures


Three months ended September 30


Nine months ended September 30


Millions of dollars,(unless otherwise stated)

2021


2020


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2021


2020


Switch


$


%

$


%

$

$


%

$


%

$


Net sales

$

391



$

371



$

20


$

1 208



$

918



$

290



Gross margin

$

65


16.6

%

$

54


14.6

%

$

11


$

183


15.1

%

$

110


12.0

%

$

73



RD&E, net /% of sales

$

(102)


(26.1)

%

$

(124)


(33.4)

%

$

22


$

(326)


(27.0)

%

$

(299)


(32.6)

%

$

(27)



Operating loss / Margin

$

(89)


(22.7)

%

$

(103)


(27.8)

%

$

14


$

(285)


(23.6)

%

$

(290)


(31.6)

%

$

5



Operating cash flow

$

(120)



$

1



$

(121)


$

(299)



$

(115)



$

(184)


Comments from Jan Carlson, president, president and chief executive officer
Veoneer posted strong operational performance in the third quarter. Despite a sequential decline in light vehicle production of 12%, our net sales have remained essentially stable, sequentially. Through our market adjustment initiatives, we have also been successful in improving our gross margin and reducing our operating loss sequentially and year over year. I would like to extend my sincere thanks to the entire Veoneer team who continue to perform in these difficult market conditions and in a rapidly changing and uncertain environment.

The underlying global demand for all of our products remains very strong, but as with many industries and businesses today, semiconductor shortages and supply chain constraints continue to hamper our growth. We manage this situation on a daily basis and do our best to support our clients in this difficult situation.

The gradual weakening of LVP during the quarter was particularly difficult when we saw a temporary build-up of inventory that is reflected in our working capital and cash flow. We have taken initiatives to rectify the situation and I see this as another sign of our discipline and execution force as LVP expectations for the year 2021 have eroded from 14% growth to beginning of the year, to virtually stable growth due to the COVID depression – 19 pandemic levels in 2020.

We continue to see strong momentum for our technologies and products. During the quarter, the high volume Subaru Forrester was launched with our stereo vision camera. We also launched our 9th customer for Monovision, we announced that we are delivering key technologies for the Mercedes S-Class upgrade to Level 3 capabilities, and we had the first public demonstration of the Arriver-Snapdragon solution. Ride with great comments at the IAA show in Munich.

Following the end of the quarter, we announced the signing of a merger agreement with SSW and Qualcomm for the acquisition of Veoneer by SSW and the subsequent transfer of Arriver to Qualcomm. The Board of Directors has determined that the $ 37 on a per share basis, all cash transactions offered by SSW and Qualcomm were superior to the previous transaction agreement with Magna International. The proposed transaction with SSW and the subsequent SSW-Qualcomm transaction are pending and subject to various conditions and we will provide updates as appropriate.

We continue to focus on day-to-day execution, delivery to our customers, solving shortages and logistics issues, and continuing to develop our products and technologies. I am very grateful to our employees who demonstrate great determination and resilience during this time of internal and external change.

1For all non-US GAAP financial measures, see the reconciliation tables in this earnings release, including the Non-US GAAP Financial Measures section for a more in-depth discussion of forward-looking non-US GAAP financial measures on page 11.

Contacts:
Thomas Jönsson – EVP Communications & IR, +46 8 527 762 27 or [email protected]
This report is information that Veoneer, Inc. is obligated to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the EVP Communications and IR agency listed above, at 12:00 p.m. CET on Tuesday, October 26, 2021.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/veoneer/r/financial-report-july—september-2021,c3440340

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