Supplier Veoneer, which Magna is in the process of acquiring, remained loss-making in the first and second quarters of 2021.
It booked a Q2 operating loss of US$92m (margin -23.1%) on sales of $398m. This compared with a $64m operating loss (-34.8% margin) on much lower sales of $184m in Covid-impacted Q2 2020.
The half year operating loss was $196m (margin -24%) on sales of $816m versus -$186m, -34.1% and $546m, respectively, in H1 2020.
Veoneer’s results statement noted an improvement in sales, operating loss and cash flow “despite lower than expected LVP and continued supply chain challenges” and highlighted the active safety net sales increase of 149% and cash balance of $556m.
Jan Carlson, chairman, president and CEO, said: “For the quarter, I was pleased with Veoneer’s performance during a challenging period. Despite the uncertainty created by supply disruptions, the COVID-19 pandemic and sequentially lower light vehicle production leading to lower sales, Veoneer improved its gross profit and operating loss as well as its cash flow. We expect continuous progress throughout 2021 as sales increases and the results of the efficiency programmes are expected to keep our costs at near planned levels.”
The supplier expects organic sales growth for full year 2021 to exceed 25% with active safety growth seen up 40-45%.
The operating loss was also expected to improve.