Financial Summary - Q4'19
· Financial results in-line with or better than our expectations
·
·
· Active Safety
· Operating cash flow impacted by
Outlook - FY'20
· Organic Sales[1)] 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 activities[1] 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
· Order intake for 2019 of
· VNBS JV (Asia Operations) divestiture closed on
· Order intake for 2020 is estimated to be approximately
Months Months
Ended Ended
December December
31 31
Dollars in millions, 2019 2018 Change 2019 2018 Change
(except where
specified)
$ % $ % $ $ % $ % $
Gross Profit / Margin $ 76 16.7 % $ 109 20.4 %
RD&E, net / % of Sales
Operating Loss /
Margin
Operating Cash Flow
Comments from
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
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
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
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.
Contacts:
Thomas Jönsson -
This report is information that
An earnings conference call will be held today,
https://news.cision.com/veoneer/r/financial-report-october---december-2019,c3027792
https://mb.cision.com/Main/17380/3027792/1188364.pdf
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