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January 7, 2021

Veoneer estimates 2020 order book value to be US$14bn

Veoneer estimates its current total order book value for full-year 2020 to be around US$14bn.

By Rhodri Morgan

Veoneer estimates its current total order book value for full-year 2020 to be around US$14bn.

During 2020, Veoneer divested its brake control business with an estimated order book value of around US$4bn, which is excluded from the current estimate.

Reductions in expectations for the global light vehicle production until 2025, further reduced the order book estimate by around US$1bn compared to the estimate from one year ago.

Lifetime value of the new order intake for the full year 2020, is estimated to be approximately US$2.6bn, corresponding to an average annual new order intake value of around US$530m, of which around 65% is for Active Safety orders. Despite the generally lower order activity in the market resulting from the COVID-19 pandemic, this new order intake value represents an increase of around 10% compared to the 2019 new order intake.

Veoneer estimates its share of Active Safety orders for 2020 to be around 15%, which is above its current sales market share. Due to the COVID-19 pandemic, the supplier further estimates the total Active Safety sourcing for 2020 was reduced by more than 40% compared to expectations at the beginning of 2020.

As previously communicated, Veoneer expects to report a return to organic sales growth in the fourth quarter of 2020 and a return to growth over the market for the second half of 2020.  It also expects organic sales growth to accelerate in 2021.

Veoneer earnings report for the fourth quarter of 2020 is currently planned for 3 February, 2021.

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