Veoneer sees strong 2021 organic sales growth, Q4 loss smaller than expected
- The firm, which saw positive organic sales growth for the first time in the fourth quarter, also said it expects increased order intake this year, and its operating loss to shrink in 2021 from 2020.
- The company expects to arrive to a sustainable operating profit and positive free cash flow during 2023.
STOCKHOLM: Automotive technology group Veoneer said on Wednesday it expects organic sales growth of over 25% this year as it posted a slightly smaller-than-expected fourth-quarter operating loss.
Veoneer, which competes with companies such as Aptiv , Bosch, Continental and Mobileye, was hit hard by the coronavirus pandemic earlier in 2020 as the car industry saw production halted in many markets by widespread lockdowns.
The firm, which saw positive organic sales growth for the first time in the fourth quarter, also said it expects increased order intake this year, and its operating loss to shrink in 2021 from 2020.
"The company expects to arrive to a sustainable operating profit and positive free cash flow during 2023," it said in a statement.
The Sweden-based firm reported a $77 million operating loss for the fourth quarter versus a $72 million loss a year earlier, and compared to a mean analysts' forecast of $83 million in a poll published by the company.
Sweden-listed shares in the company, a maker of vision systems, radars and software for advanced driver-assistance systems (ADAS), rose 3.7% at 1126 GMT.
Veoneer said last month that it expected a return to organic sales growth in the fourth quarter of 2020, with growth accelerating in 2021.
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