Financial Summary – Q4’19
- Financial results in-line with or better than our expectations
- Net Sales $456 million
- Net Sales decline 15%, Organic Sales1) decline 14%
- Active Safety Net Sales decline 22%, Organic Sales1) decline 20%
- Operating cash flow impacted by ~$(30) million of timing effects
Outlook – FY’20
- Organic Sales1) 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 activities1 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 $19 billion despite ~9% lower LVP assumptions for the period 2020 to 2025
- Order intake for 2019 of ~$550 million of average annual sales with Active Safety ~70%, this represents ~$2.5 billion of lifetime sales
- VNBS JV (Asia Operations) divestiture closed on February 3, 2020, net cash proceeds of approximately $170 million
- Order intake for 2020 is estimated to be approximately $1 billion of average annual sales for our core Electronics segment.
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SOURCE: Veoneer
