STOCKHOLM, Jan. 3, 2020 /PRNewswire/ -- Veoneer,
Inc. (NYSE: VNE) (SSE: VNE SDB), estimates its current total
order book value to be approximately $19
billion, in line with the estimate of more than $19 billion from the end of 2018, pointing to
strong sales growth ahead. Lifetime value of the new order intake
for the full year 2019 is estimated at approximately $2.5 billion, corresponding to an average annual
new order intake value of around $550
million, of which around 70% is for Active Safety orders.
The lower than expected figure is mainly due to delayed timing of
orders, first indicated in Veoneer's earnings release for the third
quarter 2019.
The total order book value of approximately $19 billion is in line with the estimate from the
end of 2018, despite an average decline in the expectations for
light vehicle production until 2025 of approximately 9%, compared
to the expectations from one year ago. Similar to last year around
80% of the order book is for the Electronics business segment
(Active Safety and Restraint Control Systems). The total
order book value is calculated as the total expected sales value of
all current orders.
Given the continued strong order book, Veoneer estimates its
core Active Safety and Restraint Control Systems sales to grow to
approximately $2.5 billion by 2022, a
compound annual growth rate (CAGR) of approximately 19%, an
outperformance of the currently expected light vehicle production
by more than 15%. Including its Brake Control Systems business,
currently under strategic review, sales are expected to be
approximately $3.3 billion and an
estimated CAGR of 20%. This compares to last 12 months net sales as
of September 30, 2019 of the core
business of $1.604 billion and total
net sales (including the Brake Control Systems business) of
$1.982 billion.
Veoneer expects to return to organic sales growth in 2020. Based
on the timing of new vehicle launches, the growth is expected to be
focused in the second half of the year. The Company intends to
share further information regarding 2020 organic sales and
estimated new order intake in its earnings release for the fourth
quarter 2019, scheduled to be issued on February 5, 2020.
This report 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 EVP
Communications and IR set out above, at 08:30 CET on Friday January 3, 2020.
Non-U.S. GAAP Financial Measure
In this release we refer to organic sales growth, a
forward-looking non-U.S. GAAP financial measure. For
additional information on organic sales and organic sales growth,
see Veoneer's filings with the Securities and Exchange
Commission.
Definitions:
Order Book - Estimated total future sales
attributable to documented new business awarded, based on estimated
product volumes and pricing and exchange rates.
Order Intake - Estimated future average annual sales
attributable to documented new business awarded based on estimated
average annual product volumes, average annual sales price for such
products, and exchange rates.
Lifetime Order Value - Estimated total lifetime
sales attributable to documented new business awarded based on
estimated product volumes and pricing, and exchange rates.
For more information please contact:
Thomas
Jönsson
EVP Communications & IR
tel +46(0)8-527-762-27
thomas.jonsson@veoneer.com
Ray Pekar
VP Investor Relations
tel +1(248)-794-4537
ray.pekar@veoneer.com
Veoneer designs and manufactures products and
solutions for active safety, autonomous driving, occupant
protection and brake control. Our purpose is to create trust in
mobility. Veoneer is a technology company that is building on a
heritage of close to 70 years of automotive safety development.
Veoneer and its joint-ventures has 9,100 employees in 13 countries.
Headquartered in Stockholm,
Sweden, Veoneer is listed on the New York Stock Exchange and
on Nasdaq Stockholm.
Safe Harbor Statement: This release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements contained
in this report other than statements of historical fact, including
without limitation, statements regarding management's examination
of historical data, estimates of future sales (including estimates
related to order intake and order book), or other future operating
performance or financial results, are forward-looking statements.
In some cases, you can identify these statements by forward-looking
words such as "estimates," "expects," "anticipates," "projects,"
"plans," "intends," "believes," "may," "likely," "might," "would,"
"should," "could," or the negative of these terms and other
comparable terminology, although not all forward-looking statements
contain such words. We have based these forward-looking statements
on our current expectations and assumptions and/or data available
from third parties about future events and trends that we believe
may affect our financial condition, results of operations, business
strategy, short-term and long-term business operations and
objectives and financial needs.
New risks and uncertainties arise from time to time, and it
is not possible for our management to predict all risks, nor can we
assess the impact of all factors on our business or the extent to
which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements we may make. Factors that could cause
actual results to differ materially from these forward-looking
statements include, without limitation, the following: cyclical
nature of automotive sales and production; changes in general
industry and market conditions or regional growth or decline; the
ability of the Company to achieve the intended benefits from its
separation from its former parent; our ability to be awarded new
business or loss of business from increased competition; higher
than anticipated costs and use of resources related to developing
new technologies; our ability to secure financing to meet future
capital needs; higher raw material, energy and commodity costs;
component shortages; changes in customer and consumer preferences
for end products; market acceptance of our new products; dependence
on and relationships with customers and suppliers; unfavorable
fluctuations in currencies or interest rates among the various
jurisdictions in which we operate; costs or difficulties related to
the integration of any new or acquired businesses and technologies;
successful integration of acquisitions and operations of joint
ventures; successful implementation of strategic partnerships and
collaborations; product liability, warranty and recall claims and
investigations and other litigation and customer reactions thereto;
higher expenses for our pension and other post-retirement benefits,
including higher funding needs for our pension plans; work
stoppages or other labor issues; possible adverse results of future
litigation, regulatory actions or investigations or infringement
claims; our ability to protect our intellectual property rights;
tax assessments by governmental authorities and changes in our
taxes; dependence on key personnel; legislative or regulatory
changes impacting or limiting our business; political conditions;
and other risks and uncertainties contained in our quarterly report
and the disclosures made in the Company's Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on
October 23, 2019.
For any forward-looking statements contained in this report
or any other document, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995, and we assume no obligation to
revise or publicly release the results of any revision to these
forward-looking statements, except as required by law. Given these
risks and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements.
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SOURCE Veoneer