Veoneer has posted third-quarter net sales down 12% to US$462m.
“During the quarter our market adjustment initiatives announced at the beginning of the year started to take effect,” said Veoneer chairman, president and CEO, Jan Carlson. “Driven by these operational improvements our operating loss was reduced by US$15m sequentially despite lower organic sales.
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“The reduction came primarily through lower RD&E costs achieved through prudent resource management and to a lesser extent by partnering in some engineering related activities in Active Safety. We were also successful in working capital management, particularly in managing accounts receivables and inventories.
“We will continue to drive our improvement initiatives, including partnering and outsourcing opportunities, as we adapt to the market realities, and drive our own continued development.
“The automotive industry faced a volatile and challenging quarter, with light vehicle production being weaker than anticipated in July across most of our major markets. Veoneer saw a sharper sales decline than the overall market, as we faced some model phase-outs of certain customer programmes and a negative product mix. In addition, positive effects on sales growth from launches of new customer programs are only anticipated to start in 2020.
“We see this challenging environment in our industry, to continue for some time. This relates both to an increased volatility in LVP forecasts as well as customer launch schedules and take rates, particularly in China, for products sold as optional features by the OEMs.”
