Financial Report April – June 2018
- Consolidated Net Sales $572M
- Net Sales growth (1)%
- Organic Sales* growth (4.5)%
- Operating margin (8.4)%
Full Year Outlook 2018
- Consolidated Net Sales similar level as 2017
- Organic Sales* growth around (3)%
- Operating loss to remain around similar levels as Q2 for Q3 and Q4 2018
- Active Safety organic sales* growth of 11%
- Strong order intake over the last 12 months of approximately $1.1 billion on an annualized basis
- Expanding customer bid activity across the product portfolio
- Sourced major mono-vision contract and first driver monitoring business with major global OEMs
- Continued investments for growth
For Key Figures summary table, please refer to attached file below.
Comments from Jan Carlson, Chairman, President and CEO
We are proud that the spin-off of Veoneer from Autoliv, Inc. was successfully completed according to schedule. Veoneer is now the world’s largest pure-play company focused on Advanced Driving Assistance Systems (ADAS) and Automated Driving (AD). We are well capitalized and positioned to capture growth and value from this long-term megatrend in the automotive industry.
Our current top priorities are order intake, execution of our current business and the competitiveness of our technology portfolio.
Our strong order intake over the last 12 months is expected to generate lifetime sales of well over $5 billion. Since our Investor Day in late May, we have secured 15 new orders across all of our product areas, leading to a current annual order intake at a similar level as at the end of the quarter. This includes small but strategically important orders with two new customers for Vision, Radar and Driver Monitoring in the rapidly growing market for active safety products in China. This is in addition to our previously announced major business wins during the quarter in vision and driver monitoring.
We currently see increased customer activity across our product portfolio, as well as higher than anticipated take rates for Active Safety products. These early market indicators are encouraging and if we conclude that they are likely to affect our previously announced sales targets for 2022 and beyond, they may also heighten our short-term investment needs.
Our technology portfolio is generally well positioned. Our in-house developed vision products are highly competitive, and we have the next generation products just around the corner. We are winning business in the new growth area of driver monitoring systems, and including the software developed by Zenuity we are positioning Veoneer to be a full system supplier for ADAS and AD.
The anticipated 2018 organic sales decline is mainly a result of our shift in vision product strategy in late 2013, combined with the phase-out of certain contracts in Restraint Control and Brake Systems. In line with previously communicated plans, we expect most of the anticipated strong growth from the current order intake, including Restraint Control and Brake Systems, to begin in late 2019, then stepping up in 2020 and beyond.
We begin as a NYSE and Nasdaq Stockholm listed company with a strong balance sheet of around $1 billion of cash, giving us the ability to continue to effectively invest for growth and tackle potential downturns in the market until we reach positive operating margin and cash flow.
Veoneer’s purpose is to create trust in mobility. Through our unique combination of automotive safety and technical competence we will work relentlessly to support our customers navigating in the current unparalleled change that is taking place in the automotive industry.
An earnings conference call will be held at 13:00 p.m. (CET) today, July 27, 2018. To follow the webcast or to obtain the pin code and phone number, please access www.veoneer.com. The earnings call slides will be available on our website prior to the earnings conference call. See also the MD&A in the Form 10Q report and the Non-U.S. GAAP Financial Measures section on page 9 of this earnings release for further disclosures.
* For these non-U.S. GAAP financial measures, and any others marked with an “ * ” throughout this earnings release, see the reconciliation tables in this earnings release, including the Non-U.S. GAAP Financial Measures section on page 9. See the Non-U.S. GAAP Financial Measures section for further discussion of the forward-looking organic sales non-U.S. GAAP financial measure.
Contacts: Thomas Jonsson – EVP Corp. Communications & IR, +46 70-957 81 27 or Thomas.email@example.com and Ray Pekar – VP Investor Relations, +1 248 794 4537 or firstname.lastname@example.org.
This information is information that Veoneer, Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP Investor Relations set out above, at 11:00 am CET on July 27, 2018.