Jan Carlson: “We see some delays in the start of production and slower ramp-ups of certain customer models along with some slight delays in expected business.”
STOCKHOLM — Swedish autos supplier Veoneer pushed back its sales and margin targets on Thursday, blaming production delays at customers struggling with tougher regulations and faltering demand.
Several carmakers have cut financial guidance as new emissions rules have delayed vehicle sales in Europe and economic growth in China, the world’s biggest auto market, has slowed to its weakest quarterly pace since 2009.
These have included Daimler AG and Hyundai Motor Co., which together accounted for 29 percent of Veoneer’s total sales in 2017, making them its second and third largest customers respectively.
The industry gloom has hit other auto suppliers too.
Veoneer, which focuses on high-tech safety gear aimed at self-driving cars, said it now expected to achieve an operating margin of 0-5 percent one to two years later than its original target of 2020, adding it would also have to spend more than expected on r&d.
The company also said it was unlikely to reach its $3 billion sales target for 2020. CEO Jan Carlson told analysts it would be “fair to guess” the target would be achieved sometime during 2021.
“In the short-term, we see some delays in the start of production and slower ramp-ups of certain customer models along with some slight delays in expected business,” Carlson said in a statement.