The automotive technology company Veoneer, Inc. estimates its current total order book value for full year 2020 to be approximately $14 billion. During 2020, Veoneer divested its brake control business with an estimated order book value of around $4 billion, which is excluded from the current estimate. Reductions in the expectations for the global light vehicle production until 2025 further reduced the order book estimate by about $1 billion compared to the estimate from one year ago.
Lifetime value of the new order intake for the full year 2020 is estimated to be approximately $2.6 billion, corresponding to an average annual new order intake value of around $530 million, of which around 65% is for Active Safety orders. Despite the generally lower order activity in the market resulting from the COVID-19 pandemic, this new order intake value represents an increase of around 10% compared to the 2019 new order intake.
Veoneer estimates its share of Active Safety orders for 2020 to be around 15%, which is above its current sales market share. Due to the COVID-19 pandemic, the Company further estimates that the total Active Safety sourcing for 2020 was reduced by more than 40% compared to the expectations at the beginning of 2020.
As previously communicated, Veoneer expects to report a return to Organic sales growth in the fourth quarter of 2020 and a return to growth over the market for the second half of 2020. It also expects the organic sales growth to accelerate in 2021.
Veoneer earnings report for the fourth quarter of 2020 is currently planned for Wednesday, February 3, 2021.
This report is information that Veoneer, Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the EVP Communications and IR set out above, at 08:30 CET on Thursday January 7, 2021.
Definitions:
Order Book – Estimated total future sales attributable to documented new business awarded, based on estimated product volumes and pricing and exchange rates.
Order Intake – Estimated future average annual sales attributable to documented new business awarded based on estimated average annual product volumes, average annual sales price for such products, and exchange rates.
Lifetime Order Value – Estimated total lifetime sales attributable to documented new business awarded based on estimated product volumes and pricing, and exchange rates.
Organic Sales and Organic Sales Growth – Represent the increase or decrease in the overall U.S. dollar net sales and percentage change on a comparable basis thereby excluding any structural impacts. This facilitates separate discussions of the impact of acquisitions and divestitures and exchange rates on the Company’s performance.
SOURCE: Veoneer
