Veoneer, currently selling yet to be launched US brake control programmes to an unnamed supplier to focus on its core electronics business, said first quarter sales fell 27% year on year to $362m.
It provided little other detail and has withdrawn its full year forecast due to the coronavirus crisis but said its operating loss was expected to improve.
Jan Carlson, chairman, president and CEO, said: “We improved in basically all areas under our control, despite lower business volumes. Our cash balance increased to $970m, net working capital improved by $89m, RD&E decreased by $25m, and capital expenditures were down by $32m.
“We have also quickly adapted our ways of working, as exemplified by transitioning 4,100 employees to work from home without technical issues. As a response to the crisis, we have reduced our workforce by more than 200 people and an equivalent to around 1,000 full time employees furloughed.
He said a strategic review begun in 2019 was concluded and Veoneer would “focus on building a world leader in hardware and software for collaborative driving”.
Through the split of Zenuity and the integration of more than 200 skilled employees to our systems and software group, we will further improve our integration and full system capabilities in this area.
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The transfer of the brake control business to a well established automotive supplier allows us to fully focus on our core activities.
“In 2020 we expect, despite the significantly lower than expected business volumes, to be able to meaningfully reduce our RD&E, net, operating loss and negative cash flow as compared to 2019.
“This is a difficult time for the automotive industry.”