Veoneer Q3 net sales up 5% to $ 391 million – Just Auto
Veoneer reported third quarter net sales up 5% to $ 391 million.
- Completion of definitive merger agreement, under which SSW and Qualcomm will acquire Veoneer, termination of merger agreement with Magna International
- 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 feedback and reviews.
- Veoneer Announced As Key Contributor To Mercedes S-Class Active Safety With 4th Generation Vision And Perception Software, Enabling Level 3 Autonomous Driving
- Twelve-month order intake (LTM) was over $ 500 million in average annual sales at the end of the third quarter 21
“Veoneer delivered strong operational performance in the third quarter,” said Jan Carlson, president and CEO of Veoneer. “Despite a sequential decline in light vehicle production of 12%, our net sales have been 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.
“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 increase. 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, which 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.
“After 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 per share cash transaction offered by SSW and Qualcomm was 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.”
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