Veoneer, spun off from Autolive, has reported second quarter sales down 1% to $572m.
It said organic sales growth was down 4.5% and operating margin off 8.4%.
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For full year 2018 it expects sales similar to 2017’s with organic sales off 3% and the operating loss at similar levels as Q2 for Q3 and Q4.
On the plus side, the supplier noted active safety organic sales growth of 11%, a strong order intake over the last year of about US$1.1bn on an annualised basis, expanding customer bid activity across its product line, securing og a major mono-vision contract and first driver monitoring business with major global OEMs plus continued investments for growth.
Jan Carlson, chairman, president and CEO, said: “We are proud that the spin-off of Veoneer from Autoliv 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 capitalised 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 $5bn. Since 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.”
He said Veoneer was winning business in the new growth area of driver monitoring systems, and including the software developed by Zenuity, was 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,” Carlson said.
