STOCKHOLM, Feb. 5, 2020 /PRNewswire/ --
Financial Summary -
Q4'19
- Financial results in-line with or better than our
expectations
- Net Sales $456
million
- Net Sales decline 15%, Organic Sales1) decline
14%
- Active Safety Net Sales decline 22%, Organic Sales1)
decline
20%
- Operating cash flow impacted by ~$(30)
million of timing effects
Outlook -
FY'20
- Organic Sales1) are expected to increase in the
mid-single digits, mainly driven by Active Safety and Brake
Systems
- Currency translation impact is expected to be negligible
- Operating loss and cash flow before financing
activities1 are expected to improve from 2019 levels (on
a comparable
basis)
- Global LVP is estimated to decline in the low-single
digits
Business
Highlights
- Market adjustment initiatives continue to drive underlying cost
structure and balance sheet
improvements
- Order book at the end of 2019 remains approximately
$19 billion despite ~9% lower LVP
assumptions for the period 2020 to
2025
- Order intake for 2019 of ~$550
million of average annual sales with Active Safety ~70%,
this represents ~$2.5 billion of
lifetime
sales
- VNBS JV (Asia Operations) divestiture closed on February 3, 2020, net cash proceeds of
approximately $170
million
- Order intake for 2020 is estimated to be approximately
$1 billion of average annual sales
for our core Electronics segment.
Key
Figures
|
|
Three Months Ended
December 31
|
|
|
|
Twelve Months Ended
December 31
|
|
|
Dollars in
millions,
(except where specified)
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
|
$
|
%
|
|
$
|
%
|
|
$
|
|
$
|
%
|
|
$
|
%
|
|
$
|
Net Sales
|
|
$ 456
|
|
|
$ 535
|
|
|
$ (79)
|
|
$ 1,902
|
|
|
$ 2,228
|
|
|
$ (326)
|
Gross Profit /
Margin
|
|
$ 76
|
16.7 %
|
|
$ 109
|
20.4
%
|
|
$ (33)
|
|
$ 311
|
16.4 %
|
|
$ 430
|
19.3 %
|
|
$ (119)
|
RD&E, net / % of
Sales
|
|
$ (103)
|
(22.50) %
|
|
$ (132)
|
(24.7) %
|
|
$ 29
|
|
$ (562)
|
(29.6) %
|
|
$
(466)
|
(20.90) %
|
|
$ (96)
|
Operating Loss /
Margin
|
|
$ (72)
|
(15.80) %
|
|
$ (75)
|
(14) %
|
|
$ 3
|
|
$ (460)
|
(24.2) %
|
|
$ (197)
|
(8.80) %
|
|
$ (263)
|
Operating Cash
Flow
|
|
$ (104)
|
|
|
$ 1
|
|
|
$ (105)
|
|
$ (325)
|
|
|
$ (179)
|
|
|
$ (146)
|
Comments from Jan Carlson,
Chairman, President and CEO
Organic sales in the quarter were in-line with our expectations
at the beginning of the quarter, despite some weakness in the LVP.
Our operating loss was lower than expected at the beginning of the
quarter, primarily due to continuing cost control activities across
the company, particularly with respect to customer reimbursements
and control of our RD&E costs. In general, our market
adjustment initiatives are continuing to positively impact our cost
structure.
During 2020 we intend to take further actions under our market
adjustment initiative program. These actions include: further
partnering, further focusing our product portfolio, reviewing
certain customer contracts, and a continued focus on other cost
improvement initiatives.
We are also continuing to define the scope and priorities of
Zenuity, where the Polestar 2 and the Volvo XC 40 Recharge, both
launching in the upcoming months, will be the first two vehicles
with the full Zenuity software suite for collaborative driving.
This is a major milestone and achievement for Zenuity.
2020 is a major customer launch year for Veoneer and we are
gearing up for the launch of our fourth-generation vision systems
during the first half of the year. The bulk of the launches, and
importantly the higher delivery volumes, are concentrated toward
the second half of the year which is when we expect Veoneer to
return to organic sales growth.
We are basing our 2020 outlook on our core Active Safety and
Restraint Control Systems businesses and our VBS US operations
Brake Systems business, as we completed the divestiture of the
Asian operations of our VNBS joint venture on February 3, 2020 as part of an on-going strategic
review of our brake business.
In the early part of January, we participated to the Consumer
Electronics Show where we showcased our latest solutions in
Collaborative Driving, which further confirmed our decision to
focus our sales, operations and development on Active Safety
solutions where the driver remains involved. Customer feedback to
our approach is very positive and we expect to win significant,
profitable orders with our focused, refined Active Safety portfolio
throughout 2020.
We are currently monitoring and taking appropriate actions on a
daily basis related to the effects from the Corona virus outbreak
in China. As always, the health
and safety of our employees is our primary focus. To date we are
not aware of any cases of the virus with our employees, however it
is too early to assess the effects on our China business as this is an on-going
situation.
For the next several quarters our focus is on preparing for:
successful customer launches in 2020 and heading into 2021, market
adjustment initiatives to continue to drive efficiencies and
improve cash flow, and continuing to win profitable new
business.
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 12:00 CET on Wednesday, February 5, 2020.
An earnings conference call will be held today, Wednesday, February 5, 2020 at 13:00 CET. To follow the webcast or to obtain the
phone number/pin code, please see www.veoneer.com. The slide deck
will be available on our website prior to the earnings conference
call. See also the Non-U.S. GAAP Financial Measures section on page
10 of this earnings release for further disclosures.
1 For all Non-U.S. GAAP financial measures, see the
reconciliation tables in this earnings release, including the
Non-U.S. GAAP Financial Measures section on page 10. See the
Non-U.S. GAAP Financial Measures section for further discussion of
the forward-looking Non-U.S. GAAP financial measures.
Contacts:
Thomas Jönsson - EVP Communications & IR,
+46-8-527-762-27 or thomas.jonsson@veoneer.com and
Ray Pekar - VP Investor
Relations,
+1-248-794-4537 or ray.pekar@veoneer.com.
Inquiries - Company Corporate website www.veoneer.com.
This information was brought to you by Cision
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SOURCE Veoneer