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The Veoneer car safety company fell sharply on the Stockholm Stock Exchange as it posted a quarterly result showing a higher loss than in the previous quarter. Forecasts have also been adjusted in a negative direction. At 13:30, the stock was down by just over 15%.
Veoneer announces pre-tax profit of $ 70 million for the third quarter of 2018. According to Infront Data's compilation of 13 analyst forecasts, a pre-tax profit of less than $ 63.6 million was expected.
CEO Jan Carlson welcomes the continued flow of orders and the company's ability to attract competent staff.
"We have a strong order intake, successful customer activities and a good momentum to get our products, we have placed several large orders and increased the number of customers on the list of offers," he said. 39, Direkt news agency.
Veoneer's order intake for the third quarter was approximately $ 1.1 billion. Order intake is still significant at the beginning of the fourth quarter and orders in the last twelve months are currently around $ 1.3 billion, the average annual business figure.
"We, like everyone else, have suffered from the contraction in auto production, and the exchange rate has been unfavorable, with a dollar on the rise," said Jan Carlson.
More important than the quarter result, however, the company lowered its forecast for 2018 sales, it signals an increase in research and development costs and warned that the 2020 sales target will not be achieved. This goal, a $ 3 billion sale, had already been assessed as being met. In addition, the company is increasing the lead time for a positive one to two year operating margin.
"We were largely complete, but it turns out that the orders will not be achieved by 2020, but a little further away.These are displacements in the launch of several car models and a deceleration slower, but no cancellation, "said Jan Carlson.
Research and Development (R & D) costs are expected to increase by approximately $ 20 million in the fourth quarter compared to the third quarter.
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