Financial Summary - Q3'21.
Active Safety drives organic sales growth, despite 20% YoY decline in light vehicle production (LVP)
Active Safety
Operating cash flow
Cash balance
Business Highlights
Entered into a definitive merger agreement under which SSW and Qualcomm will acquire
Organic Sales growth outperformed the global LVP by ~23pp during Q3'21
Semiconductor supply chain shortages continue to create industry production, delivery and cost challenges
Temporary inventory buildup negatively impacted cash flow, expect the effect to reverse in fourth quarter
ADAS and AD software unit Arriver performed first public demonstration running on the Snapdragon Ride platform, at IAA,
Order intake over the Last Twelve Months (LTM) was more than
Key Figures Three Months Ended September 30 Nine Months Ended September 30
Dollars in millions,(except where specified) 2021 2020 Change 2021 2020 Change
$ % $ % $ $ % $ % $
Net Sales$ 391 $ 371 $ 20 $ 1,208 $ 918 $ 290
Gross Profit / Margin$ 65 16.6 %$ 54 14.6 %$ 11 $ 183 15.1 %$ 110 12.0 %$ 73
RD&E, net / % of Sales$ (102) (26.1) %$ (124) (33.4) %$ 22 $ (326) (27.0) %$ (299) (32.6) %$ (27)
Operating Loss / Margin$ (89) (22.7) %$ (103) (27.8) %$ 14 $ (285) (23.6) %$ (290) (31.6) %$ 5
Operating Cash Flow$ (120) $ 1 $ (121) $ (299) $ (115) $ (184)
Comments from
The global underlying demand for all of our products remains very strong, but as is true for many industries and companies today, semiconductor shortages and supply chain constraints continue to hamper our growth. We are managing this situation daily, and are doing our utmost to support our customers through this difficult situation.
The gradual weakening of the LVP during the quarter was especially challenging where we saw a temporary buildup of inventory which is reflected in our working capital and cash flow. We have taken initiatives to rectify the situation and I view this as another sign of our discipline and executional strength as the full year 2021 LVP expectation eroded from a 14% growth in the beginning of the year, to virtually flat growth from the depressed COVID-19 pandemic levels in 2020.
We continue to see strong momentum for our technologies and products. During the quarter the high-volume Subaru Forrester was launched with our stereo vision camera. We also launched our 9th customer for Monovision, we announced that we are delivering key technologies for Mercedes S-Class upgrade to level 3 capabilities, and we had the first public demonstration of the Arriver-Snapdragon Ride solution to great feedback at the IAA Show in
Following the end of the quarter, we announced that we signed a merger agreement with SSW and Qualcomm for the acquisition of
Our focus continues to be on the day-to-day execution, delivering to our customers, overcoming shortages and logistics issues, and continuing to develop our products and technologies. I am most grateful to our people who are showing great determination and resilience through this period of internal and external change.
1For all Non-
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